Karnataka: Darvesh Group’s Mohammad Hussain Suja, Syed Maskin, & Syed commit fraud worth Rs 500 crore

Raichur: A significant fraud allegation has surfaced against Darvesh Group, a company located on Hyderabad Road in Raichur, Karnataka. Dozens of people had invested substantial amounts in this company, often taking loans with interest. For the past few months, however, investors have alleged that the company has not paid interest as promised. This led to a significant upheaval at the company’s office on June 22.

Darvesh Group has not been adequately responding to investors’ concerns for months, and the company’s leaders have become unreachable. The promised monthly interest payments have also ceased. This mounting frustration culminated in a violent outburst on July 23, when hundreds of angry investors stormed the Darvesh Group office. They vandalised the office, breaking furniture, air conditioners, glass, and other items.

In a distressing turn of events, security guard Venkatesh, who had borrowed and invested Rs 9.5 lakhs along with his brother, attempted suicide by consuming poison in front of the Darvesh Group office during the financial confrontation. Venkatesh is now fighting for his life at the RIMS Hospital in Raichur.

Darvesh Group was established in 2022 as a partnership firm. It attracted investments from the public by offering interest rates of 10 per cent or more. The company was run by Mohammad Hussain Suja, Syed Maskin, and Syed. Many investors were from economically disadvantaged backgrounds, including auto and cab drivers, plaster workers, and others who had mortgaged their homes to invest, lured by the promise of high returns.

Thousands invested approximately Rs 400 to Rs 500 crores through agents who collected the money and distributed interest payments.

However, recent protests have erupted against the company due to non-payment issues. Following Venkatesh’s suicide attempt, other investors have also threatened drastic actions, including making selfie videos where they warn the company while sitting on railway tracks and threatening to jump from river bridges if their money is not returned.

A case has been registered at the Raichur CEN police station against the owners of Darvesh Group, Mohammad Hussain Suja, Syed Maskin, and Syed. Despite these serious allegations and the destruction of office property, the company has not responded to the incident, raising further suspicions. Additionally, a separate case has been filed regarding the vandalism of the office furniture.

The district administration and the police department are urged to take immediate action to ensure justice for the affected investors, many of whom are from vulnerable sections of society. The authorities need to address this situation promptly to prevent further distress and potential harm to the public.

“The three fraudsters launched a company in the year 2022, offering 10 per cent monthly interest,” said a Raichur police officer in the investigating team. The fraudsters collected money through 12-14 agents by offering them a two per cent commission. Initially, they distributed 10 per cent monthly returns to investors by saying they invested money in stock markets, providing heavy profits. But since May 2024, the partners and a few agents have absconded. Police formed two teams to capture the accused, who is said to be hiding in  Madhya Pradesh. We have booked them under IPC sections 420 and 406 and laid a trap to nab the accused.

Veeranjanappa, an investor, told the Organiser that I invested Rs one lakh in February 2024. They paid interest at ten per cent every month until April. But since May, when I visited their office, they said they would pay later due to financial constraints. I heard the accused absconded on July 20, so I filed a police complaint.

Police sources said the money invested by all poor and middle-class people, ranging from Rs 10,000 to Rs one lakh, attracted interest. More than 10,000 people invested in the company and the exact amount of fraud will be known only after the accused is arrested.

The alleged multi-crore fraud case involving the Darvesh group company has taken a severe turn. On Wednesday, the state government transferred the case to the CID for further investigation. The case was initially registered at the CEN station in Raichur, but due to its complexity and severity, it has been handed over to the CID.

The CID team will visit Raichur on July 25 to take over the investigation and gather more information. They will obtain the current investigation report and details of investors and company owners from the Raichur District Superintendent of Police.

The situation has become even more dire, with one of the investors attempting to commit suicide by consuming poison. The individual is currently fighting for their life at  Raichur Institute of Medical Sciences (RIMS) Hospital.

In a disturbing turn of events, some investors have threatened to commit suicide by jumping off a bridge into the river if their money is not returned. They have even recorded selfie videos warning the company of their intentions. The CID’s involvement is expected to bring new momentum to the investigation, and investors hope for a swift resolution.