Published On: Wed, Oct 12th, 2022

Chinese among 10 arrested in Rs 903 crore Chinese investment fraud

Hyderabad: Hyderabad police on Wednesday busted a Chinese investment fraud to the tune of Rs 903 crore and arrested 10 persons, including a Chinese national and a Taiwanese national.

Chinese national Lec alias Li Zhongjun and Taiwanese national Chu Chun-yu have been arrested

The cyber crime cell of the city police busted the fraud during the investigation into a complaint by a citizen he was cheated after he invested Rs 1.6 lakh in an investment app called LOXAM. On investigation, it was found that the money of the complainant was deposited in the bank account of IndusInd Bank in the name of Xindai Technologies Pvt Ltd.

Further investigations revealed the scam, said Hyderabad Police Commissioner CV Anand while disclosing the details of the fraud at a press conference here.

He said that money changers licensed by the Reserve Bank of India (RBI) to deal in foreign exchange were involved in the scam. Though they were given a license to provide foreign exchange to those travelling abroad, they were found to be violating the FEMA.

Chinese national Lec alias Li Zhongjun and Taiwanese national Chu Chun-yu have been arrested along with eight others for running a hawala scam from Delhi and Mumbai.

According to the police, Kaushik, a resident of Delhi, had last year obtained RBI licenses for two money exchanges – Ranjan Money Corp Pvt Ltd and KDS Forex Pvt Ltd.

The police investigations revealed that the transactions in the account of Ranjan Money are to the tune of Rs 441 crore in a period of seven months. Transactions of another Rs 462 crore were done by KDS Forex.

“It has come to light during the investigation that fraud has been committed through hawala to the extent of 903 crore rupees,” Anand said.

The Police Commissioner informed that so far Rs 1.91 crore have been frozen in various bank accounts in this case.

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