- Duo had set up shell companies to lure investors with quick and lucrative returns; earlier this week, arrests had been made in Delhi and Uttarakhand as well
Surat: A roadside tea seller and a travel agent in Surat found a unique common business platform from where they could earn riches that would have otherwise been out of their reach. Just that it wasn’t legal. Their run was cut short by the Surat police who arrested them for their involvement in the multi-crore Power Bank scam that has turned out to be one of the biggest online frauds in the country.
The arrests came two days after the special task force (STF) of Uttarakhand police nabbed a man in the case. The duo, identified as Vijay Vanzara (35) and Jay Parekh (30), has been handed over to CID-Crime, Bengaluru, where they were originally wanted.
As per the information provided by Surat police commissioner Ajay Tomar, additional CP- traffic and crime Sharad Singhal and deputy CP Rahul Patel, lakhs of investors across the country had been duped with the lure of huge and quick returns on their investments via apps like Power Bank and EZPlan. Vanzara, a native of Dahod, runs a roadside stall of tea and snacks in Surat. Parekh, a native of Bhavnagar, lives in Adajan area and is a travel agent. They were arrested following technical surveillance by Surat police.
The accused had set up shell companies and used Razor Pay as the payment gateway. Gullible investors would fall for the trap of quick returns and invest in these companies. This money would then be transferred to other gang members.
According to police, approximately 5 lakh people have fallen victim to this scam across the country, having lost a total of nearly Rs 250 crore.
Complaints in this regard have been registered in Delhi, Uttarakhand, Bengaluru and other places. While the Power Bank app came across as a Bengaluru-based start-up, its server was found in China, according to reports.
The fraudsters had set up shell companies across the country. On Wednesday, the Delhi police said they had arrested 11 people, including two chartered accountants, in the case.
Power Bank was available for download on Google Play Store till last month.
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