₹670-cr investment fraud: How a former mason allegedly lured 7,400 investors with 4% monthly returns
A Hyderabad-based man who once worked as a mason and petrol pump attendant is now facing allegations of orchestrating a ₹670-crore investment fraud involving around 7,400 investors across India.
Nanavath Bhupal Naik, a native of Telangana's Vikarabad district, allegedly built his investment business around the promise of giving nearly 4% monthly returns. He collected money through two companies for this purpose.
The Cyberabad Economic Offences Wing (EOW) is investigating three cases linked to the alleged fraud, which involved Shares Bazaar Pvt Ltd (SBPL) and Kisaan Parivar Ltd (KPL), The Times of India reported.
Police have so far traced only about ₹35 lakh in the 70 bank accounts linked to his companies and their directors, the report said.
Naik allegedly tapped into his existing network of stock market clients and used online promotions to bring more investors into his businesses.
Investigators have also identified properties, bank accounts and other assets suspected to be linked to the money collected from investors. The EOW has received more than 500 complaints in connection with the alleged fraud.
According to the news report, Naik started Shares Bazaar Pvt Ltd in 2020 as a stock trading business. The alleged investment operation gained momentum from 2022-23 onwards, when prospective investors were promised monthly returns of around 4% if they invest money.
However, the police reportedly found that SBPL did not have the necessary authorisation to collect deposits from the public.
Naik allegedly used money collected from new investors to pay returns to those who had invested earlier, an EOW official told the news organisation. This arrangement continued until it became unsustainable in 2025.
Such a practice, in which money from new investors is used to pay existing ones rather than generated through genuine business activity, is commonly associated with a Ponzi scheme, which is illegal in India.
After completing 10th standard, Naik had difficulty clearing his Intermediate examinations, according to the EOW investigation. He later claimed to have completed his education through open schooling and correspondence courses.
Before venturing into financial services, he reportedly worked as a mason and petrol pump attendant. His association with the stock market began in 2013-14, when he joined a brokerage firm as an agent.
The role allowed him to build a network of clients, which investigators believe later helped him expand his investment business. In 2016, Naik went on to set up a franchise of the same brokerage firm in Hyderabad's Kukatpally area.
He also registered Kisaan Parivar Ltd. around the same time, pitching it a move to promote organic farming by pooling agricultural land from marginal farmers. However, the company remained inactive for many years, TOI reported.
The EOW has ordered a forensic audit of the two companies linked to the investment fraud, which is expected to be completed this month.
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