Duo arrested in Rs 100 crore fraud case, would promise to invest money in Bollywood films

The Economic Offences Wing (EOW) of Mumbai police has arrested two businessmen for duping investors of Rs 117 crore under the pretence of investing their money in hindi films.

The accused, accounts manager of Red Carpet Entertainment Private Limited and director of Red Carpet Finances Limited, were produced before a city court on Friday.

According to an EOW official, the firm would lure investors by promising to invest their money in mainstream Hindi films and triple their returns over a two year period.

The firm followed a unique repayment schedule wherein for an investment of Rs 1 lakh, the investor would receive 5 percent each month during the first 6 months, totaling Rs 30,000. 10 percent in the next 6 months, totaling Rs 60,000. Then, 15 and 20 percent respectively for the subsequent 6 months totalling Rs 90,000 and Rs 1,20,000 respectively.

The prime accused, accounts manager Vaibhav Thakkar, was responsible for luring investors during one-on-one meets and seminars.

Once he received the investors money, he would open bogus bank accounts and withdraw money under fake names.

The other culprit, director of the firm, Jitesh Pathak, reportedly had around Rs 55 crore of the investors money in company’s bank accounts. He had allegedly siphoned off another Rs 50 crore prior to the arrest.

The EOW estimates that the accused have duped over 1000 investors till now.

Both Thakkar and Pathak have been remanded to police custody till July 18.