Four arrested in ₹3.49 crore investment fraud case in Hyderabad

Four individuals were arrested by the Telangana Cyber Security Bureau (TGCSB) in connection with a large-scale business investment fraud in which a Hyderabad-based software employee was cheated of ₹3.49 crore. During the operation, police seized four mobile phones, two cheque books and three debit and credit cards from the accused.

The accused were identified as Avula Srinivas, 45, a resident of Meerpet; Kukkala Sathish Kumar, 41, a resident of Mahabubabad; G. Rajender, 50, a resident of Warangal and Vatti Michael Reddy, 49, a resident of Karimnagar.

According to the police, Michael Reddy was the holder of a current account opened with Axis Bank in the name of Thanish Consultancy Private Limited, through which a portion of the cheated amount was routed. The probe revealed that the accused were part of a group that procured and supplied bank accounts to cyber fraudsters in return for commission.

The case came to light following a complaint by a software employee residing in L. B. Nagar on November 17. The fraud unfolded on August 20, 2025, when he was added to a WhatsApp group titled “305 Stock Market News” by an unknown woman using the name Aarohi. The group was filled with posts claiming high returns from stock market investments, institutional stocks and IPOs. After observing the group activity for several days, the victim contacted the admin to join the investment programme on September 22, 2025.

Police said the victim was persuaded to invest through a platform named “Nuvama”, accessed via a WhatsApp link, and was asked to share personal details through a Google form. He was assured that a high net worth individual account would be created in his name and that trading in institutional stocks, over-the-counter deals and IPOs would be carried out on his behalf. The fraudsters promised exceptionally high returns and said a service fee would be charged only if profits crossed a certain threshold (20% service fee for 850% profit).

The victim initially invested ₹50,000 in September and was shown modest profits on the app. Encouraged by this, and following repeated persuasion, he went on to invest a total of ₹3,49,20,004 over a period of about 50 days. He was even allowed to withdraw ₹12 lakh at one stage to build confidence. The trading account later showed paper profits running into several crores.

Trouble began when the victim attempted to withdraw his funds in November. The fraudsters demanded a 20% service fee and later extracted ₹30 lakh from him on the promise of releasing ₹3 crore. Despite this payment, further demands were made under various pretexts, including alleged loan charges, and the withdrawal was blocked, prompting him to approach the cyber crime police.

During the investigation, police traced part of the money trail to the Axis Bank account held by Thanish Consultancy Private Limited. Bank records revealed that the account had been opened by Vatti Michael Reddy, a resident of Karimnagar. He was apprehended at his residence and brought to Hyderabad, where he was remanded to judicial custody. Based on his confession, the other three accused were arrested and produced before the court on December 18.

Police said Avula Srinivas had earlier established a software firm by the name ;NC Software solutions’ in Dubai and allegedly acted as a conduit after agreeing to provide current bank accounts to cyber fraudsters in exchange for 25% commission. He allegedly coordinated with the other accused to supply Michael Reddy’s bank account details to unidentified fraudsters, who carried out high-value transactions in a single day.

Investigators found that as many as 94 complaints had been registered on the National Cybercrime Reporting Portal against the account, with total transactions amounting to over ₹6.29 crore.

Efforts are under way to trace the remaining accused involved in the fraud. The Telangana Cyber Security Bureau has appealed to the public to remain cautious and report any individuals seeking the use of bank accounts for transferring money, warning that such requests are often linked to cyber fraud.