Mumbai Investment Scam: 66 Investors Duped Of ₹3.66 Crore With Promise Of 4x Returns; Case Filed Under MPID Act

Mumbai, April 23: The Bhandup police have registered a case against SND Wealth Advisor Company and KGN Fincorp Services, along with their directors and associates, for allegedly defrauding 66 investors of Rs 3.66 crore by luring them with promises of fourfold returns within 16 months.

Accused identified

The accused have been identified as Haroon Rashid Shaikh, Nilofar Haroon Shaikh, Raqeeb Haroon Sheikh, Halima Abdul Sattar Shaikh, Yakub Variya, Shahanawaz Yakub Variya, Paras Vijaybhai Choksi, and Preeti Paras Choksi alias Lovely Thirteen.

Complainant details and initial investment

According to the FIR, the complainant, Sultan Dastagir Shaikh, 33, a courier company employee residing in Bhandup West, lost Rs 16.8 lakh in the fraudulent scheme. The scam reportedly occurred between February 10, 2024, and January 10, 2025.

Sultan Shaikh stated that he was introduced to the scheme in February 2024 by acquaintances Haroon Shaikh and Yakub Variya, who claimed that an investment of Rs 4.2 lakh would yield monthly returns of Rs 1.2 lakh for 15 months.

In need of money, Shaikh sold a 100-gram gold chain and paid Rs 2.8 lakh in cash to Haroon Shaikh and his wife Nilofar Shaikh. He also transferred Rs 1.4 lakh online to the account of SND Wealth Advisor Company.

Escalation of investment and losses

Initially, Shaikh received two payments of Rs 1.2 lakh each in April and May 2024. However, in May 2024, Raqeeb Shaikh informed him of changes to the scheme, reducing the payout period to 10 months unless further investments were made.

Trusting the assurances, Shaikh sold additional family gold and borrowed money from friends, investing a total of Rs 12.6 lakh more at the company’s office in Khindipada. Altogether, he invested Rs 16.8 lakh.

Payments stop and assurances fail

Payments stopped after May 2024. When questioned, the accused cited election-related delays and banking issues. Later, Haroon Shaikh allegedly claimed that co-accused Paras Choksi had absconded with the funds but assured repayment within three months.

In October 2024, Shaikh received Rs 20,000 in cash from the accused’s family members. Soon after, he learned that nearly 200 investors had gathered outside the company’s office demanding their money. The accused then issued cheques promising repayment with interest by January 10, 2025, but the cheques later bounced.

Victims approach police

When investors visited Haroon Shaikh’s residence on the promised date, the house was found locked and all contact numbers were switched off. Subsequently, all 66 victims approached the Bhandup police and filed a complaint.

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Mumbai Investment Scam: 66 Investors Duped Of ₹3.66 Crore With Promise Of 4x Returns; Case Filed Under MPID Act

Bhandup police have registered a case against multiple accused for allegedly duping 66 investors of Rs 3.66 crore through a fake scheme promising fourfold returns. Victims invested large sums via cash and transfers, but payments stopped and cheques bounced. A probe under the MPID Act is underway.