Monthly Returns of 7-8%? Mumbai Police Bust Rs 57 Crore Investment Scheme: What the Law Says

What happened?

Mumbai Police say they have arrested four people over an investment scheme. This is according to reports by Free Press Journal, Lokmat Times, Bombay Samachar and Urban Acres.

The Economic Offences Wing (the police unit for money frauds) says the scheme ran as ‘AI Origin’ and ‘Digital Origin’. Four people were held on 14 and 15 August 2026, and police raided five places.

Reports say the company promised high monthly returns. The reports differ on the figure, from 5 to 8 per cent a month. They say it had no approval from the RBI or SEBI (the regulators for banks and the stock market).

Police say people paid Rs 1,500 to join. They were then allegedly asked to bring in more members. Investors were reached through a website, WhatsApp groups and seminars.

How big is the case now?

Police first spoke of about Rs 30 crore. Later reports say the figure has crossed Rs 57 crore.

Free Press Journal and Urban Acres report that police wrote to hundreds of investors, between 700 and 1,000. They want more people to come forward and file complaints.

Police say they seized Rs 12 lakh in cash, two vehicles and seven computers. The case is still being investigated, and the figure may change.

Is a scheme like this a crime?

Promising a high return is not a crime on its own. It becomes one if the promise is false and people are tricked into paying.

Cheating is defined in BNS section 318. A person cheats when they deceive someone and so make them hand over property or money.

Police can also add other sections. The reports do not say which ones were used here.

What is the punishment?

Under BNS section 318(4), cheating that makes a person hand over property can mean up to 7 years in jail and a fine. This used to be IPC section 420.

It is cognizable (police can act without a court’s permission). It is also non-bailable (bail is not a right).

Ordinary cheating under section 318(2) is up to 3 years, or a fine, or both. It is non-cognizable and bailable.

If a person was trusted with money and misused it, BNS section 316 (criminal breach of trust) can apply. Up to 5 years in the basic form, and up to 10 years or life if the person is a banker, agent or merchant, plus a fine.

If two or more people plan it together, BNS section 61 (criminal conspiracy) can be added.

All this applies only if the allegations are proved in court.

Can the accused get bail?

In a non-bailable case, a court decides on bail. It looks at the seriousness of the case, the amount, and whether the accused may flee or affect the witnesses.

Courts often look closely at money-fraud cases with many victims. That is why bail can take time.

Every accused is presumed innocent until the court decides.

What happens next?

Police trace the money and the bank accounts. They record statements of investors. Then they file a chargesheet (the final police report) in court.

The court frames charges, hears the witnesses and gives a judgment.

A court can also order the accused’s property to be attached (seized) so that victims may be repaid. The reports say police are seeking this for some land.

What can an investor do?

An investor is a victim of the alleged cheating. They can file a complaint with the local police or the Economic Offences Wing. A complaint can also be made on the cybercrime portal if the scheme ran online.

Giving a written complaint with proof helps police count the total money. Bank statements, chat messages and receipts are the key proof.

A person who only joined and brought in friends may also face questions. A lawyer can advise on how to explain the facts.