Hyderabad Police bust major trading fraud, arrest two suspects

HYDERABAD: The Hyderabad City Police's cybercrime team arrested two suspects in connection with a massive trading fraud in which investors were duped by fake stock market tips.

The arrested individuals were identified as Bhura Ram, also known as Raju Bhai, a resident of Dubai, UAE, originally from Jodhpur, Rajasthan, and Ramchandra, also known as Ganesh Ram, a resident of Jodhpur, Rajasthan.

The police investigation began after a complaint was filed by a victim from Hyderabad, who reported that cyber fraudsters contacted him through the Telegram app, offering tips and guidance on investing in the stock market for huge profits. These fraudsters, posing as representatives of Motilal Oswal, lured the victim into investing Rs. 1,03,25,000, directing him to transfer the money into various bank accounts. Following the complaint, the police registered a case under Sections 66(C) and 66(D) of the IT Act and Sections 419 and 420 of the IPC.

During the investigation, it was found that Bhura Ram and Ramchandra were colluding with other cyber fraudsters, including a person identified as Berlin (who is absconding), to cheat people under the pretext of providing stock market tips. Bhura Ram collected bank account details from Ramchandra for a 5% commission, which was then supplied to Berlin at a 20% commission. Bhura Ram had given a total of 47 bank accounts to Berlin.

The police found that 507 cases related to this fraud had been registered across India, with 67 cases in Telangana alone. Rs. 1.44 crore was frozen in the implicated bank accounts, with Rs. 55 lakh already refunded to victims through court orders.

The accused, Bhura Ram, was arrested when he returned to India from Dubai through Nepal, where he had attempted to evade immigration screening due to a Lookout Circular (LOC) issued against him. Ramchandra, the second accused, had opened shell company bank accounts and supplied them to Bhura Ram for a commission. The two suspects were arrested on April 16, 2024, and were initially placed in judicial remand. They were then taken into police custody on April 20 for five days and were subsequently returned to judicial remand on April 25.

The police seized significant evidence, including a mobile phone, ten chequebooks, three passbooks, six debit cards, a passport, five Aadhar cards, a PAN card, a United Arab Emirates Resident Identity Card, four stamp pads, and a laptop.

The investigation was led by Inspector S. Naresh, with support from Sub-Inspectors A. Shailendra and Bhavani, Head Constables Md. Feroz and Mahesh, and Police Constable Ravi Kumar and ARPC Gajeshwar. The operation was carried out under the direct supervision of DCP Dara Kavitha and ACP RG Siva Maruthi of the Cyber Crime Police Station, Hyderabad.

Hyderabad Police Commissioner K Sreenivasa Reddy warned the public to be cautious of fraudulent online trading websites not registered with SEBI and to avoid investing in unauthorised websites that promise high returns with little effort.