Hindustan Times ST (Mumbai)

Pricepaidf­orhighretu­rns: 700 lose₹40cr toa‘realtysche­me’

Investors sold homes, took loans to get 1.5 times the amount in 100 days

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the scheme, thus attracting more people.

“Seven hundred people invested in the scheme in cash. Most of them didn’t even get a receipt. Raeesa, the mastermind, used to tell investors that even if the scheme failed, she can easily return the money using the insurance policies her first husband opened in her name,” an official said.

The investment­s made were in the range of ₹50,000 to ₹40 lakh. When investors started to ask about the returns after 100 analyst, chartered accountant or other investor

Read the fine print (terms and conditions) and make sure you understand every potential aspect of your investment

Don’t opt for a scheme that promises a reward for recruiting more members. Such schemes come to a halt when promoters either default on payment or run away with the money.

Always check for registrati­on credential­s of the company before investing in it

Every non-banking finance company has to be registered with the Reserve Bank of India

Check the corporate affairs ministry's database for any informatio­n about a company. If you can’t find the companies in the database, avoid it. days, Raeesa would come up with some excuse. “Most investors are from poor families. Some of them sold their homes, while some took a bank loan to invest,” said another official.

As the investors approached the Santacruz police, the senior brass transferre­d the case to the EOW, as it would need a dedicated probe. The police have booked the four under relevant sections of the Indian Penal Code and Maharashtr­a Protection of Interests of Depositors (MPID) act.

The police have, so far, recovered ₹5.86 lakh from the accused.

“We are checking if they invested the money in properties. If such details crop up, the properties will be attached. EOW is in the process of seeking their custody,” another officer said.

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SHUTTER STOCK

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