The Delhi Police's EOW arrested Mohd Nazim for an alleged illegal pyramid scheme run via a fake NGO. He and associates cheated poor people of Rs 11 lakh by promising goods and incentives for enrolling new members before absconding with the money.
The Economic Offences Wing (EOW) of the Delhi Police has arrested a man in connection with a case involving an alleged illegal money circulation and pyramid scheme operated under the guise of a non-governmental organisation (NGO).
According to the Delhi Police, the accused, identified as Mohd Nazim, was arrested in connection with an FIR dated August 10, 2023, registered under Sections 406, 420 and 120-B of the IPC and Sections 3 and 4 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Details of the Fraudulent Scheme
Police alleged that the accused, along with his associates, cheated poor and economically weaker persons of around Rs 11 lakh through schemes floated in the name of an NGO, Khawaja Gareeb Nawaz (KGN).
The present case was registered on the complaint of a resident of Madanpur Khadar in New Delhi, along with several other victims. The complainants alleged that the NGO induced people to deposit under various schemes on the false promise of providing sewing machines, refrigerators, televisions, washing machines and other household articles.
The accused persons also lured the victims by offering educational assistance, marriage benefits and other incentives upon enrolling new members under the schemes.
During the investigation, police alleged that Mohd Nazim and his associates operated an illegal money circulation and pyramid scheme by inducing members of the public to invest money in various schemes by falsely promising consumer goods, educational benefits, cash incentives and a refund of the deposited amount upon enrolment of additional members.
Investigation further revealed that the accused persons initially supplied limited goods to a few members to create confidence among the public. Thereafter, they widely circulated pamphlets, brochures and membership forms to attract a large number of investors.
The schemes were structured in the nature of a pyramid, wherein existing members were required to enrol new members for receiving promised benefits, thereby attracting the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
After collecting substantial amounts from the public, particularly targeting poor and vulnerable residents of Madanpur Khadar and adjoining areas, the accused persons shut down their office and disappeared, causing wrongful loss to innocent investors and corresponding wrongful gain to themselves.
Accused Arrested After Interrogation
During interrogation on July 7, the accused allegedly attempted to mislead the investigation, failed to provide satisfactory answers regarding the utilisation of the funds and did not cooperate with the investigating team, following which he was arrested, the police stated in a press release. (ANI)
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