Kothagudem police cracks Rs 52 crore investment fraud, arrests accused, seizes 35 vehicles

Kothagudem police arrested the prime accused in an alleged Rs 52 crore investment fraud case from Kerala and seized 35 vehicles. Police said the accused lured investors with promises of high returns and are continuing efforts to trace assets and other victims

Kothagudem: The district police have cracked a major investment fraud case, arrested the accused and seized 35 vehicles, including six buses, allegedly bought with the proceeds of the crime.

Speaking to the media here on Saturday, Kothagudem DSP L Adinarayana said the prime accused, Bethampudi Bharat Kumar, was arrested at Pala town in Kerala’s Kottayam district.

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He was brought to the district on a transit warrant and interrogated in connection with the case registered at Laxmidevipally police station following a complaint lodged by an individual, Bharpati Srinivasa Rao.

The accused allegedly collected approximately Rs 52 crore from various persons under the guise of investments. He claimed to be a labour contractor for ITC Paperboards at Sarapaka and promised high returns if they partnered with him in contract projects.

Police said he orchestrated the fraud by creating fake partnership agreements and forged documents while promising a four per cent share of the profits to gain the victims’ trust. He allegedly carried out the fraudulent activities using business entities such as BK Naidu & Co. and Rajeshwari Travels.

Six buses, a water tanker lorry, three tractors, two pieces of agricultural equipment, seven cars, 14 two-wheelers and two trailers allegedly bought by the accused were seized. Police also alleged that he purchased a three-storey building and a plot in Rajiv Nagar Colony in Bhadrachalam with the alleged proceeds of the crime.

The scrutiny of financial transactions, bank accounts and relevant documents related to the case is ongoing. Efforts are on to identify other victims, locate and seize further assets acquired through criminal means, and uncover the complete money trail, the DSP said.

Officials emphasised that public vigilance was key to effectively curbing such financial crimes. SP B Rohith Raju commended the Laxmidevipally police and the district task force police for cracking the case.