New Delhi [India], July 9 (ANI): The Economic Offences Wing (EOW) of the Delhi Police has arrested a man in connection with an alleged illegal money circulation and pyramid scheme operated under the guise of a non-governmental organization (NGO).
According to the Delhi Police, the accused, identified as Mohd. Nazim, was arrested in connection with an FIR registered on Aug. 10, 2023, under Sections 406, 420, and 120-B of the Indian Penal Code (IPC), along with Sections 3 and 4 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Police alleged that the accused, along with his associates, cheated poor and economically weaker individuals of approximately Rs. 11 lakh through schemes launched in the name of an NGO, Khawaja Gareeb Nawaz (KGN).
The case was registered based on a complaint filed by a resident of Madanpur Khadar in New Delhi along with several other alleged victims. The complainants claimed that the NGO encouraged people to deposit money under various schemes by falsely promising sewing machines, refrigerators, televisions, washing machines, and other household items.
The accused also allegedly attracted victims by offering educational assistance, marriage benefits, and other incentives upon enrolling new members into the schemes.
During the investigation, police alleged that Mohd. Nazim and his associates operated an illegal money circulation and pyramid scheme by encouraging members of the public to invest money while falsely promising consumer goods, educational benefits, cash incentives, and refunds of deposited amounts upon the enrollment of additional members.
The investigation further revealed that the accused allegedly provided limited goods to a few members initially to build public confidence. Later, they circulated pamphlets, brochures, and membership forms widely to attract a larger number of investors.
According to police, the schemes were structured as pyramid-based operations, where existing members were required to recruit new members to receive promised benefits, bringing them under the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
After allegedly collecting substantial amounts from the public, particularly targeting poor and vulnerable residents of Madanpur Khadar and nearby areas, the accused persons reportedly shut down their office and went into hiding, causing financial losses to investors while benefiting themselves.
During questioning on July 7, the accused allegedly attempted to mislead investigators, failed to provide satisfactory explanations regarding the use of collected funds, and did not cooperate with the investigation team, following which he was arrested, police said in a statement. (ANI)
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