The CID officials have arrested Muhammad Shamid, Mohsin, and Azhar Ali concerning the multi-crore fraud case involving Darvesh Group Company. During the investigation, the accused indicated that Rs 2 crores were hidden at an acquaintance’s house. Following this lead, CID officials searched a house in LBS Nagar, Raichur city, and recovered the Rs 2 crores. The company’s owner, Mohammad Hussain Suja, has gone missing since the fraud case was registered. The investigation is ongoing under the leadership of CID SP Purushottam, who is actively searching for Suja.
The Darvesh Group Company, located on Hyderabad Road in Raichur, has been operating since 2022. The company was managed by Mohammad Hussain Suja, Syed Maskin, and Syed. They attracted investments by promising high returns, with 10 per cent and above interest rates. This scheme primarily targeted auto and cab drivers, plaster workers, and other poor individuals who mortgaged their homes to invest, lured by the promise of high interest rates.
For the past few months, however, the company has failed to pay the promised interest, leading to growing accusations and unrest among the investors. The situation escalated on June 22, when a major confrontation occurred at the Darvesh Group office over financial issues. Investors reported that the company had not been responsive for months and had ceased operations entirely. The interest payments, which had been sporadic, stopped altogether.
A formal complaint was registered at the Raichur Cyber, Economic, and Narcotic (CEN) Crime Police Station, leading to a case being filed against the owners of Darvesh Group—Mohammad Hussain Suja, Syed Maskin, and Syed.
The arrests of Shamid, Mosin, and Azhar Ali mark a significant development in the ongoing investigation. The CID continues to search for Suja while SP Purushottam oversees the case. The discovery of the hidden Rs 2 crores is expected to help uncover more details about the extent of the fraud and the whereabouts of the missing company owner.
The localities who invested in the company accused the majority of the investors in the company of being from the poor class and were lured by fraudsters offering a high interest rate. Though the company issues bonds mentioning two per cent interest per month, which is permitted by law, it actually provides 10 per cent interest to investors, which is off the record.
The accused were conspiring to collect a huge sum of money and settle abroad, but the police foiled their bid. The accused promised investors they would invest the money in the stock market and get high returns; hence, they could give 10 per cent interest.
But since May, they have stopped paying interest to investors, which created panic among investors who filed police complaints. A Dalit youth, Venkatesh, invested Rs 2 lakhs of his own money and convinced his brother to invest Rs 7 lakhs in the company just two months back.
After hearing the company stopped payments, he was shocked and attempted to commit suicide last week by consuming poison. The suicide bid triggered protests by various organisations. Followed by pressure, the state government handed over the case to CID, which managed to arrest three company partners and make efforts to nab the prime accused in the case.
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