<p>The State government has ordered a CID probe into another Ponzi scam unearthed in Bengaluru Rural district, here on Wednesday. </p>.<p>According to Revenue Minister R Ashoka, the scamsters had cheated over 2,000 investors to the tune of Rs 40-60 cr, by promising returns of upto Rs 25,000 every month on an initial investment of Rs 2-2.5 lakh. The scam was operational in districts bordering Bengaluru Urban district, he said.</p>.<p>The prime accused in the case are Ramit Malhotra, Jojo Thomas and Madi Nair, who opened five different companies and lured to invest in them. The companies are Yellow Express Logistics Limited, Yellow Express India Pvt Ltd, Yellow Finance and Earnings Ltd, Login India Finance and Earnings and Laxmi Carzone Pvt Ltd. </p>.<p>The companies lured investors to deposit Rs 2 to 2.5 lakh and promised them that the funds will be used to buy cabs. They assured them that the cab will be registered in their name and will be attached to a cab aggregator. Revenue generated by running the cabs - between Rs 10,000 to Rs 25,000 per month - was assured to the investors.</p>.<p>However, the scam came to light when the Reserve Bank of India wrote to the State government and pointed out that the companies were not non-banking financial companies (NBFCs). "Hence, it is not authorised to accept deposits or undertake any NBFC activity such as lending, investment etc." adding that the companies were not in the list of registered entities as per Securities Exchange Board of India.</p>.<p>During investigation by district authorities, Ashoka said, it was found that the companies had attached only 63 cars registered to investors with the cab aggregators, despite investment by more than 2,000 people. "Officials also noted that as many as 240 cars were registered in the name of owners. We are investigating whether registration documents are fake," he said.</p>.<p>The business model was suspicious as the owners had to have a monthly profit anywhere between Rs two to three cr to pay the assured monthly share to investors. "However, their monthly income was only around Rs 15-20 lakh, he said.</p>
<p>The State government has ordered a CID probe into another Ponzi scam unearthed in Bengaluru Rural district, here on Wednesday. </p>.<p>According to Revenue Minister R Ashoka, the scamsters had cheated over 2,000 investors to the tune of Rs 40-60 cr, by promising returns of upto Rs 25,000 every month on an initial investment of Rs 2-2.5 lakh. The scam was operational in districts bordering Bengaluru Urban district, he said.</p>.<p>The prime accused in the case are Ramit Malhotra, Jojo Thomas and Madi Nair, who opened five different companies and lured to invest in them. The companies are Yellow Express Logistics Limited, Yellow Express India Pvt Ltd, Yellow Finance and Earnings Ltd, Login India Finance and Earnings and Laxmi Carzone Pvt Ltd. </p>.<p>The companies lured investors to deposit Rs 2 to 2.5 lakh and promised them that the funds will be used to buy cabs. They assured them that the cab will be registered in their name and will be attached to a cab aggregator. Revenue generated by running the cabs - between Rs 10,000 to Rs 25,000 per month - was assured to the investors.</p>.<p>However, the scam came to light when the Reserve Bank of India wrote to the State government and pointed out that the companies were not non-banking financial companies (NBFCs). "Hence, it is not authorised to accept deposits or undertake any NBFC activity such as lending, investment etc." adding that the companies were not in the list of registered entities as per Securities Exchange Board of India.</p>.<p>During investigation by district authorities, Ashoka said, it was found that the companies had attached only 63 cars registered to investors with the cab aggregators, despite investment by more than 2,000 people. "Officials also noted that as many as 240 cars were registered in the name of owners. We are investigating whether registration documents are fake," he said.</p>.<p>The business model was suspicious as the owners had to have a monthly profit anywhere between Rs two to three cr to pay the assured monthly share to investors. "However, their monthly income was only around Rs 15-20 lakh, he said.</p>
