Tirupati: The online trading and investment scam that has rocked Kavali town in Nellore district is reckoned to be a large-scale fraud with implications across multiple states.What seemed like a local financial irregularity has snowballed into a huge scam, which was masterminded by Mohammad Subhani, a key figure in unauthorised financial transactions.Posing as a financial consultant and investment adviser, Subhani allegedly carried out massive frauds in Andhra Pradesh, Telangana, and Karnataka. Police investigations also exposed his previous scams in Makthal, Hyderabad, Rajahmundry and Guntur in Andhra Pradesh, as well as several locations in Karnataka. In Makthal alone, he allegedly duped investors of nearly Rs 200 crore.A police investigation started after Telangana’s Makthal MLA Vakiti Srihari reached out to Kavali MLA Venkata Krishna Reddy, seeking justice for his constituents who had fallen victim to Subhani’s fraudulent schemes. Soon, several duped individuals from Makthal visited Kavali with their bagful of woes.According to sources, the fraudulent operations in Kavali town were carried out under the label of Ananthartha Associates, a firm that promised high returns through stock market trading and online investments.However, investigations revealed it was merely a front for a Ponzi scheme preying on middle-class investors, tribal communities and small-scale businessmen.“The racket was run from a rented building in Marrichettu Girijan Colony, near Kavali town. The fraudsters promised high returns –a daily return of Rs 6000 for each Rs 1 lakh deposit. This enticing offer attracted thousands of people and many of them even sold properties to invest in the fraudulent scheme. Agents were appointed on a commission basis, expanding the scheme into surrounding villages,” a police official told Deccan Chronicle.As details of the scam emerged, the district police claim, they took swift action and suspended two constables for their involvement in Ananthartha Associates’ financial dealings.The Victims of the huge scam are now rueing their actions. They say they had invested substantial sums, believing in promises of high returns.Subhani allegedly manipulated records to show artificial profits, convincing depositors to reinvest and recruit more persons into his schemes, further expanding the scope of the fraud.“The scammers conducted training sessions for youngsters, by collecting Rs 10,000 as an initial deposit and returning Rs 13,000 within a month. This helped build trust. As confidence grew, larger amounts were invested, only to end up in a bottomless pit.“Subhani, operating from Guntur, registered Ananthartha Associates and appointed 17 local directors”, police stated.While the exact amount embezzled in the Kavali scam remains undetermined, reports suggest crores of rupees were defrauded. With a steady rise in complaints, police have intensified the efforts to track down Subhani and his associates.Kavali DSP Sridhar and his team raided the firm’s office and seized documents. The victims continue seeking justice and recovery of their lost sums.
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