Bishal Phukan from Assam's Dibrugarh was living the Instagram life — luxury cars and foreign trips — with little knowledge that the source of his wealth could come under the scanner and eventually invite police at his door. His social media posts would give an impression of him being a successful entrepreneur, which he claims to be, early in his life but in reality he has been pinned the mastermind of one of the massive fraudulent investment schemes in Assam.
The state police recenly unearthed a massive online trading scam worth Rs 2,200 crore that involved brokers who made fraudulent online stock market investments by claiming to double people's money.
Around 38 people have been arrested from different parts of the state in connection with the fraudulent scam that was being run for almost three years, reported The Hindu.
'Doubling Money'
22-year-old Bishal Phukan and his Guwahati-based associate Swapanil Das convinced people to invest in their app with a promise to double the investment in 60 days.
Investors claimed they took loans of Rs 10-15 lakh to invest in the app. Initially, they received small amounts along with 30–50% interest but that stopped as soon as the people started investing larger sums.
Police traced the fraudsters after some investors complained about not being paid for more than a year past the 60-day offer. The two app owners also converged attention after they bought acres of land and high-end cars, apart from posting photos from foreign locations on their social media profiles.
Phukam, the "kingpin" posed himself as an industrialist while Das identified himself as an entrepreneur, said a senior police officer, adding that both are in the custody of the cops.
A search has also been launched for actor-choreographer Sumi Borah who has been suspected of being involved in the scam. It is alleged that she received expensive gifts from Bishal. Her extravagant wedding at a Rajasthan resort is also under the scanner.
Assam CM Himanta Biswa Sarma Sounds Alarm
Chief Minister Himanta Biswa Sarma reacted to the incident and urged citizens to be alert against investing through brokers who do not follow due legal procedure.
He stressed that anyone promising to double the money with additional interest is a "hallmark of fraudsters." According to the law, no one is authorised to conduct stock broking in such a deceptive manner,” he told the press.
He also shed light on the correct procedures for legitimate stock market investments and cautioned the public against certain apps that operate outside the law.
“They (certain apps) are completely unlawful. Today, the police have taken action, and in the future, they will intensify it. There is a proper procedure for engaging in stock broking—such as opening a Demat account. These apps should be ignored. They lure people with attractive returns initially and then scam them. So, please stay away from these,” said the CM.