'Paisa Double Scheme': Thousands Defrauded Nationwide; Prominent Entrepreneur Arrested By Telangana Police
Thousands nationwide were cheated in the investment scheme which promised profit of up to nearly 50 per cent. It involved leading companies and an entrepreneur.
Published : July 5, 2026 at 6:31 PM IST
Hyderabad: Telangana Police have arrested a well-known entrepreneur Nenavath Bhupal Naik alias NB Naik for allegedly cheating more than 6,000 people across the country by luring them with high-return investment schemes.
The Economic Offences Wing (EOW), Cyberabad, took Naik, a resident of Kandikonda village in Mahabubabad district, into its custody after being brought to Hyderabad on a prisoner transit (PT) warrant from Gujarat.
The founder of Hyderabad-based companies Shares Bazaar Private Limited (SBPL) and Kisaan Parivar Limited (KPL) is accused of defrauding investors through shell companies, promising high returns but swindling their money.
Police said Naik, a former share market analyst, floated the two companies in 2020 and allegedly promised investors annual returns ranging from 18 per cent to 48 per cent.
“He lured investors through the promise of profits from natural farming projects and land purchases. His companies also used false SEBI registration in online promotions and marketing campaigns to encourage people to invest their money,” they said.
Police said thousands of investors transferred crores of rupees, with some even selling gold, agricultural land, and other assets to invest, trusting the promises made. The companies initially paid returns for a few months but stopped payments from September last year before shutting their offices, prompting police complaints by investors.
A case was registered at the Cyberabad EOW police station on June 15 following complaints by victims. The initial probe suggested that the fraud extended beyond Telangana.
One of the complaints is a 58-year-old retired Indian Navy veteran, Sanjeev Gupta, who alleged that SBPL and KPL cheated him and his family members of Rs 4.51 crore in the name of investments.
He alleged that the accused lured him and others through false promises, investment platforms and unauthorised public deposit schemes.
Another victim, Subhash Reddy, claimed he and his family invested around Rs 2 crore after being introduced to the scheme by a friend. He alleged that investors later discovered the operation involved around 20 shell companies and 30 to 40 bank accounts, with nearly 6,000 victims nationwide.
Police said Naik was earlier arrested by Gujarat police after a lookout notice was issued when he allegedly attempted to flee through Shamshabad Airport. Investigators are also probing the role of several associates named by the victims.
Notably, Naik had contested the 2023 Assembly elections as an independent candidate from the Dornakal constituency and had organised public outreach programmes under the banner of Kisaan Parivar.
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