Five Promoters of Private Firm Held for Rs 23 Crore Swindle

Five persons were arrested today for allegedly duping investors to the tune of Rs 23 crore by promising hefty returns on deposits, police said.

Police seized Rs 15 lakh in cash and three cars from their possession.

The Magic Resorts and Ventures Public Limited, founded by Devndrappa Raghavendra Reddy from Raichur in Karnataka and Dunna Jeeva Ranjan from Nalgonda district in July, lured investors by promising them 360% returns on investments.

The accused were on run since December 12 when they downed the shutters of the company, police said, adding that the identity of three others is being established.

"The company had launched a scheme promising that the investors will get the return of Rs 9,000 per week for 40 weeks on initial deposit of Rs 1 lakh. As per the preliminary estimates, the company clocked a turnover of Rs 23 crore in five months of its operation," Police Commissioner Sivadhar Reddy told reporters here.

According to police, they have received complaints from 78 victims claiming they were duped by the accused to the tune of Rs 1.30 crore.

Reddy said the company had appointed as many as 300 agents and set up branches in Narsipatnam and Anakapalli.

Emerging story. Watch this space for updates as more details come in
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