2 booked for duping people of Rs 10 cr in Mangaluru

Mangaluru: Two persons from Katipalla in Surathkal have been booked for running an illegal deposit scheme under the name New India Royal Scheme, allegedly cheating thousands of investors.

According to the complaint, the accused — identified as scheme proprietor M Mohammed Ashraf and manager Haneef — operated from a BMR building in Katipalla village and lured people with promises of high returns and attractive prizes. Handbills advertised that by paying Rs 1,000 per month for 10 months (Rs 10,000 total), members would receive Rs 12,000 in cash at the end of the scheme, along with chances to win prizes such as cars, bikes, and gold rings.

The complainant joined in July 2024, paying the first installment in cash and subsequent monthly payments via Google Pay completing the last payment on April 21, 2025.

Police said the organisers collected deposits from over 10,000 members, amassing several crores of rupees without obtaining the necessary licence. When the scheme matured, the accused allegedly delayed payments, claiming the process was underway. Two months ago, Ashraf reportedly shut down the office and stopped responding. The complaint stated that despite promising to return deposits or provide prizes, the accused neither repaid the investors nor awarded the promised items. Police have termed it an unauthorised deposit scheme, estimating the fraud to exceed Rs 10 crore. A case has been registered at Surathkal Police station.