VIJAYAWADA: Vijayawada city police have unearthed a massive investment scam involving over Rs 300 crore, following a complaint lodged at the Machavaram police station. The fraudulent scheme, which duped hundreds of investors with promises of unusually high monthly returns, was exposed on Friday.
The primary accused, Aditya, and his partner Ravi, were operating under the name Advik Trading Company. They lured investors by promising Rs 6,000 per month for every Rs 1 lakh invested. The scheme, aggressively promoted through various campaigns, attracted over 1,200 investors from Andhra and other States.
Trouble began when the company defaulted on its payments. A Hyderabad-based software engineer filed a police complaint after failing to recover his promised returns, prompting authorities to launch a probe. Preliminary findings confirmed that the company had mobilised nearly Rs 300 crore from unsuspecting investors.
Police have taken both Aditya and Ravi into custody for questioning. It was also found that Aditya and his wife, both former LIC agents, had floated the venture in 2022 under the name Adwika Trading Agency. They quickly expanded operations by setting up multiple branches and employing a wide network of marketing agents.
“They targeted middle-class and salaried individuals by offering high returns in a short span. Many people invested their life savings,” a senior official said. Probe revealed that the firm followed a Ponzi model, using funds from new investors to pay older ones.
The firm shut down operations without notice. Police are now tracing the financial trail to determine where the funds were diverted.
