Quick Takeaways
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Major Arrest in Scam: The Economic Offences Wing of Delhi Police jailed Jugal Kishore, a key figure in a Rs 2,700 crore fraud involving around 150 investors misled into funding a bogus Dholera Smart City project.
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Deceptive Tactics: The scheme leveraged doctored videos featuring Prime Minister Modi, falsely branding the project as his “dream,” and promised investors weekly returns along with extravagant incentives like motorcycles and electronics.
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Operational Collapse: The fraudulent operation crumbled after an app crash on January 23, 2023, leaving investors without access to promised returns and leading to multiple FIRs being filed across states.
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Ponzi Scheme Dynamics: Investigations revealed a classic Ponzi model, where funds from new investors were used to pay older ones, with the accused directors now sought for embezzling over Rs 2,000 crore to acquire vast land holdings in Dholera.
Arrest of Key Accused in Smart City Fraud
The Economic Offences Wing (EOW) of the Delhi Police arrested Jugal Kishore, 57, on Wednesday in Shahdara. Authorities linked him to a massive Ponzi scheme involving an alleged investment of Rs 2,700 crore. Around 150 investors fell victim to the scheme, misled by promises of extraordinary returns from a project in Dholera Smart City, Gujarat. Reports revealed that the accused used a doctored video of Prime Minister Narendra Modi, portraying it as his endorsement of the project. This strategy aimed to build credibility and attract investors.
Additionally, Kishore and an associate, Vinod Kumar, presented a deceptive sales pitch through Zoom. They guaranteed investors a 3% monthly return and bonuses, including motorcycles and laptops, for meeting investment milestones. Victims could track their returns via an app, which functioned well at first. However, it crashed earlier this year, leaving investors unable to access their accounts. Investors felt increasingly anxious as the company’s website became inaccessible and Kishore stopped responding to calls.
Ongoing Investigations and Broader Implications
Investigations indicated a widespread scheme operating nationally, with a head office in Ahmedabad. Several other individuals, including directors Subhash Bijarania and Ranveer Singh Bijarania, remain at large. The scam involved collecting funds under false pretenses while using older investments to pay higher returns to new investors—classic Ponzi mechanics. The EOW identified substantial land purchases in Dholera, indicating the severity and scale of the fraud.
Kishore, a former part-time priest and property dealer, played a crucial role in the operation. Police noted that he sold his home to facilitate the scam. As the investigation continues, authorities are working to retrieve funds for victims and prevent further fraudulent schemes from emerging.
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