One held on charges of running Ponzi scheme in Belagavi
Police in Belagavi, India, have arrested a promoter of APPEXX Bizcorp LLP for allegedly running a Ponzi scheme that defrauded over 3,000 investors. The company promised high returns on investments in real estate and stocks before misappropriating the funds.
Why it matters
Financial fraud cases highlight the risks of unregulated investment schemes and the importance of consumer protection in emerging markets.
The police have arrested a person on charges of running a Ponzi scheme and duping over 3,000 persons.
Investigators from the Tilakwadi Police Station arrested Arjun Mahadev Waghmare, 36, a resident of Chikkodi, Belagavi district. He is one of the several accused. Police Commissioner Borase Bhushan Gulabrao has formed a team to trace and arrest the other accused. A team led by Circle Inspector Parashuram Pujari is investigating the case.
The accused is among the promoters of APPEXX Bizcorp LLP, a trading company accused of collecting around ₹160 crore from people by promising exorbitantly high interest rates. The company allegedly collected money from the public by promising high returns and invested the funds in the stock market, real estate, and other immovable properties. The complaint alleges that the funds were subsequently misappropriated, resulting in losses to investors.
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