TGCSB arrests four in ₹3.49 crore fake investment fraud
HYDERABAD: The Cyber Crime Police Station (Headquarters) of the Telangana Cyber Security Bureau (TGCSB) has arrested four persons for their alleged role in a business investment fraud in which a software employee lost ₹3,49,20,004, police said on Wednesday.
The case has been registered as Crime No. 46/2025 under Section 66(D) of the Information Technology Act and Sections 318(4), 319(2) and 338 of the Bharatiya Nyaya Sanhita (BNS).
How the victim was lured
According to police, the complainant, a software employee residing at L.B. Nagar, was added on August 20, 2025, to a WhatsApp group named “305 Stock Market News” by an unknown woman identifying herself as Aarohi. The group carried messages claiming high returns from institutional stocks and initial public offerings.
After observing the posts for nearly 20 days, the victim contacted the admin on September 22, 2025. He was subsequently introduced to a purported investment platform named “Nuvama” through a WhatsApp link and asked to share personal details through a Google form.
Police said the victim was persuaded to open a so-called high net worth individual account and was assured returns of up to 850% over five months, with a 20% service fee on profits. He initially invested ₹50,000 and was shown modest profits, which encouraged further investments.
Over 50 days, the victim transferred a total of ₹3.49 crore. Though he was initially allowed to withdraw ₹12 lakh, the platform later demanded additional service charges and other payments, including ₹30 lakh to withdraw ₹3 crore. When withdrawals were repeatedly blocked on various pretexts, he approached TGCSB.
Role of the accused
During investigation, police found that part of the defrauded amount was routed through a current account of Thanish Consultancy Pvt Ltd with Axis Bank. Bank records showed the account was opened by Vatti Michael Reddy, a resident of Karimnagar.
Michael Reddy was apprehended from his residence and remanded to judicial custody. Based on his confession, three others Avula Srinivas, Kukkala Sathish Kumar and G. Rajender were arrested and produced before a court on December 18, 2025.
Police said the accused were part of a group that procured and supplied bank accounts to cyber fraudsters in exchange for commission. Investigators found 94 complaints on the National Cybercrime Reporting Portal linked to the same account, with total transactions of ₹6,29,64,433.
Seizures and modus operandi
Police seized four mobile phones, two cheque books and three debit and credit cards from the accused.
Investigators said Avula Srinivas had earlier set up a software firm in Dubai and later coordinated with contacts from Rajasthan and Kerala to provide current accounts for cyber fraud. The accounts were allegedly handed over during meetings in Bengaluru, after which transactions were carried out in a single day. A commission of ₹2.5 lakh was allegedly shared among the four accused.
Efforts are on to trace and arrest other persons involved in the racket, police said.
Public advisory
TGCSB has appealed to the public to remain vigilant and report anyone asking to use bank accounts for money transfers on the pretext of avoiding tax or for earning easy commissions.
Police said the case was cracked by a team led by inspector E. Srinu Naik and sub-inspector Nayeemuddin, under the supervision of deputy superintendent of police K.V.M. Prasad.
