Fareed and his son Syed Ahmed Afaq are accused of leading Ambitant marketing and having duped thousands of investors since December 2016.
Briefing reporters Wednesday, the city police commissioner, T Suneel Kumar, said: "The judicial police investigation investigates the financial transactions of Ambidant Marketing Private Limited after complaints from people who have We had seized the bank accounts and scrutinized them, a transaction involving the payment of 18 crores of rupees was suspicious, and it is in the context that we arrested two people, including Fareed. decided to summon Janardhan Reddy, Ali Khan and others for an interrogation. "
Police raided Reddy's apartment near Basaveshwara Circle during the day and seized documents.
Ambidant, who operated from RT Nagar, had raised funds from more than 15,000 people, most of whom were Muslims who had made their investments "in the Islamic way" profitable. The company offered a return on investment of 30 to 40% Although investors initially received profits, the company began to skip school after a few months. Investors lodged complaints against the police and organized demonstrations The DE made a raid on the company in January of this year.
"The Criminal Cases Section, headed by IPS officers, Alok Kumar and Girish S, began investigating the complaints filed against Ambidant and arrested Fareed", Kumar said. "We found that the company had transferred 18 rupee crores to a bank account.By checking, we learned that the money had been transferred to Ramesh Kothari, a gold bullion merchant based in the city. When questioned, Kothari said he received more than 57 kilograms of gold at Ramesh Rajmahal .We arrested Ramesh from Ballari and he revealed that the gold had been handed over to him. Janardhan Reddy's assistant, Ali Khan We now have to call Ali Khan and Janardhan Reddy to find out where the gold is. "
Police formed four special teams to find Khan and Reddy.
"During the interrogation, Fareed claimed that he had paid Reddy and other people as he had promised to bail him in the case ED "said Kumar. The police said they were found in incriminating documents, including photographs of a meeting between Reddy, Fareed and Afaq. The meeting was reportedly held at a Michelin-starred hotel on the Race Course Road in March this year and reportedly hosted by a city-based builder.
Denying that there were any notices of supervision for Reddy, Kumar said, "We must know that the money collected from innocent investors was made available to Reddy and his help, we must probe and recover the gold. "