Is Ponzi Schemes and Online Trading Scams Spilling Over to Nagaland from Assam?

The public has been urged to report any financial losses immediately by calling 1930 or visiting the cybercrime.gov.in website.

The menace of Ponzi schemes and online trading scams appears to be spilling over from Assam to Nagaland, as the Nagaland Police recently issued a public advisory alerting citizens to an emerging investment scam involving a company identified as RGA. According to the police, the company has lured several investors from Nagaland with promises of exceptionally high returns on their investments.

“Initial investors are given returns as promised, apparently to appear genuine,” stated the advisory. However, the police revealed that investors were also offered commissions for bringing in new investors, a hallmark of Ponzi schemes. The public has been urged to report any financial losses immediately by calling 1930 or visiting the cybercrime.gov.in website.

A senior Nagaland Police officer confirmed that the issue was initially discovered by the CID branch and has since been discussed to the Director General of Police (DGP) level. In response, the public advisory was issued to safeguard citizens. Following the advisory, the Cyber Crime Police received few complaints related to the scam, though officials have not disclosed the exact number of complaints.

This warning comes after the Nagaland Police arrested and charge-sheeted Biplap Kumar Dey, the Chairman and Managing Director of Everlight Realcon Infrastructure Limited (ERIL), for defrauding unsuspecting investors and swindling crores of rupees. ERIL initially attracted investors with products like electronics and household items through Advance Product Booking (APB). Later, the company’s focus shifted to financial schemes promising large returns through APB and Redeemable Preferential Shares (RPS), engaging in illegal deposit collection.

The company’s scam became evident when its MD admitted that ERIL had been circulating investors’ money without proper backing. Investigations revealed that the company’s claims of running projects in sectors like hospitals, infrastructure, and mining were false, as no assets or projects existed. The company built credibility through charitable activities and high-profile events with state dignitaries as chief guests, but it failed to deliver on its promised returns, leaving investors at a loss.

Meanwhile, in neighboring Assam, the Central Bureau of Investigation (CBI) has officially taken over 41 cases related to an online trading scam following a request by the Assam government. Chief Minister Himanta Biswa Sarma confirmed that the state had formally consented to the CBI’s involvement to ensure a thorough and impartial investigation. This decision follows several arrests in connection with the scam, including those of 22-year-old Bishal Phukan, actor and influencer Sumi Bora, and her husband. Last month, the Assam cabinet also handed over 32 additional cases tied to the trading scam to the CBI. Local police had earlier made multiple arrests in connection to these fraudulent schemes.

Both states are grappling with a growing number of investment scams, and authorities are urging the public to exercise caution and report suspicious activities immediately.

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