Rs 260 crore ponzi scam accused nabbed in Nepal

AHMEDABAD:

Vinay Shah

, who is accused of carrrying out a

Rs 260 crore ponzi scam

, was arrested by Nepal police from a hotel in the town of Pokhara in Kaski district on Thursday, said officials of the probe agency, CID (crime), on Monday.

CID (crime) officials said Shah was caught along with a woman friend, Chanda Thapa, at a hotel by Nepal police. Rs 31.28 lakh and some foreign currencies were recovered, said Haresh Dudhat, SP of the economic offences wing of CID. Shah’s wife and co-accused, Bhargavi Shah, is still on the run, said Dudhat.

Dudhat said CID officials are in talks with Nepal police to extradite Shah to India. India and Nepal have signed an extradition treaty, through which Shah can be extradite, he said.

Sources in the CID said Shah had first gone to Delhi after fleeing Ahmedabad, where he met Chanda Thapa. Both of them then fled to Nepal by crossing the Uttar Pradesh border. Nepal police officials informed CID on November 22 that they had held a couple with Indian and foreign currencies. When CID sleuths saw the couple, they recognized the man as Shah.

Shah had about $300, about 3500 euros and £1,140 on him.

The first FIR in this case was filed on November 12, accusing Shah and his wife of fraud conducted using the promise of doubling money invested in their firm, Archercare, a multi-level marketing business in Thaltej. A note written by Shah also went viral, in which he accuses a senior police officer and some individuals of blackmailing him and extorting money in exchange for covering up the alleged scam.

More than 250 people had invested sums ranging from Rs 4,500 to Rs 1 lakh, and were allegedly cheated by the couple. The total value of the scam may cross Rs 260 crore, said police officials.