Retired jawan accused in Rs 40cr fraud died by suicide in 2024; process on to identify, seize assets, says Pune cops

PUNE: For the past one-and-a-half-years, police were on the trail of a retired army jawan, the prime suspect in a massive investment fraud that allegedly duped over 300 people - mostly military personnel - of nearly Rs 40 crore. Investigations have now revealed that he had died by suicide in 2024, the very year the matter came to light.

The Economic Offences Wing (EOW) of the Pune police had registered a case of cheating and invoked the Maharashtra Protection of Interest of Depositors (MPID) Act against the retired jawan on Aug 3, 2024. During the course of the investigation the officials discovered that the suspect took his own life in Kolhapur district's Chandgad that same year after the case was registered against him.

"We learned of his death a few months ago and our team has since verified the facts. We have recorded statements from his next of kin, and further investigation is on," said Pune police commissioner Amitesh Kumar. "We are in the process of identifying and seizing his movable and immovable properties."

The scale of the fraud has grown significantly since the initial investigation. Deputy commissioner of police (EOW) Vivek Masal told TOI, "Initially, the FIR cited a cheating amount of Rs 26.41 crore. However, as more victims came forward with complaints, the estimated loss has escalated to approximately Rs40 crore."

According to the EOW, the deceased allegedly suffered heavy losses in the stock market, which may have led to the collapse of his investment scheme. Two of his accomplices, who managed the operations from an office on BT Kawade Road in Mundhwa, have already been arrested and are currently in judicial custody.

The fraud, which operated between 2020 and 2024, specifically targeted the defence community. The suspects lured investors, primarily ex-servicemen and active-duty jawans, into a share trading scheme with the promise of lucrative returns of 5% per month.

To build credibility, the accused initially paid regular interest to early investors. However, the payments stopped entirely in March 2024. Shortly after, the suspect shuttered the BT Kawade Road office and fled, claiming he needed time to reorganise the capital and settle arrears.

"Following reports of his suicide from the Kolhapur police, we have identified several of his properties in Pune and other parts of the state," DCP Masal added. "We will seize these assets as part of the legal recovery process for the investors."

The case was originally filed against the deceased and six others for duping 262 investors, but the list of victims continues to grow as the EOW probes the full extent of the share trading scam.