Srinagar, Feb 16: Jammu and Kashmir Police have dismantled a massive multi-crore fake online investment racket in Ganderbal district, arresting eight individuals, including the alleged kingpin, officials said on Monday.
According to police, the transnational scam involved phishing techniques and fraudulent online trading platforms that duped investors across India of hundreds of crores of rupees.
Kingpin Arrested at Delhi Airport
The alleged mastermind, Ekant Yogdutt alias Dr Morphine, a resident of Hisar, Haryana, was arrested at Indira Gandhi International Airport upon his arrival from China. Investigators revealed that he had developed expertise in cyber fraud techniques while pursuing his MBBS in the Philippines and maintained links with foreign nationals, including individuals based in China.
How the Online Investment Scam Operated
The case came to light following a complaint filed by Firdous Ahmad Mir in Ganderbal, prompting Senior Superintendent of Police Khalil Ahmad Poswal to constitute a Special Investigation Team (SIT) with cyber experts.
Police found that fraudulent websites and social media advertisements — including platforms such as paisavault.com — lured victims with promises of high returns through fake coin trading and online investment schemes.
Once victims deposited money, the funds were diverted into bank accounts controlled by accomplices from Budgam, Srinagar, Ganderbal, Baramulla and other districts. The money was then transferred outside Jammu and Kashmir — and in some cases outside India — using multiple layers of transactions to evade detection.
Rs 209 Crore Traced So Far
Investigators have identified 835 bank accounts linked to the racket and verified transactions in 290 of them. So far, Rs 209 crore has been traced, with officials estimating that the total fraud amount could exceed Rs 400 crore once verification is complete.
The accused allegedly recruited below poverty line (BPL) account holders, offering them Rs 8,000–10,000 per month in exchange for access to their bank accounts and ATM cards. Police also uncovered the involvement of certain bank employees who allegedly provided QR codes that were uploaded on fake investment portals.
The fraudsters operated Telegram channels to circulate QR codes for transactions. When cyber units froze accounts after detecting suspicious activity, new QR codes were quickly uploaded to continue the scam.
Other Accused Identified
The kingpin allegedly conspired with Mohd Ibrahim Shah alias Yawer, Nasir Ahmad Ganie, Maqsood Ahmad alias Dr Albert, Tanveer Ahmad alias Dr Martin, Tawseef Ahmad Mir, Khurshid Ahmad and Ishfaq Ahmad, who acted as regional heads and account mobilisers.
Police said further investigation is underway to uncover the full network and trace additional funds siphoned off through the online investment fraud.
Authorities have urged the public to exercise caution while investing online and avoid unverified trading platforms promising unrealistic returns.
