Investigation Uncovers ₹1.48 Crore Fraud Involving Fake Dubai Entity in Rajkot

A sophisticated investment fraud has been uncovered in Rajkot, Gujarat, where suspects allegedly deceived victims out of over ₹1.48 crore by promising high returns through a Dubai-based trading company. Two individuals have been arrested in connection with the scheme, though the primary accused and another accomplice remain at large. Investigators suspect the case may be the tip of a larger, well-organised financial racket.

Background and Context

The investigation began following a complaint from a local resident who was manipulated into investing in an entity known as "Nisha Investment Consultants – FZCO." Financial analysts note that the case exhibits classic characteristics of a Ponzi scheme, where early investors are paid returns with capital from newer entrants rather than legitimate profit. Such schemes often rely on the veneer of international operations to bypass the skepticism typically applied to local opportunities.

Key Figures and Entities

According to official statements, the individuals in custody are Gaurang Khunt and Arvind Khunt. Authorities are actively pursuing the prime accused, Sagar Khunt, and his mother, Jyotsnaben Khunt, who are currently absconding. The operation allegedly centered around the promised performance of "Nisha Investment Consultants – FZCO," which the accused claimed was a profitable trading firm managed by family members in Rajkot to ensure transparency.

Legal and Financial Mechanisms

Court filings indicate that the primary complainant, Virendrasinh, invested ₹56.43 lakh between 2023 and March 2025, leveraging a decade-long acquaintance with Sagar Khunt. The scheme offered monthly returns of 4% to 5%. Initially, the fraudsters maintained the illusion of solvency by paying out approximately ₹11.53 lakh to the victim. However, payments abruptly halted in 2025, revealing a shortfall of over ₹1.48 crore across a victim pool now estimated at 15 individuals.

Police have registered the case under relevant sections of the Bharatiya Nyaya Sanhita, India's new penal code. While officials have successfully frozen or recovered some funds, they anticipate the total fraud value could surpass ₹5 crore as more victims are identified.

International Implications and Policy Response

The alleged use of a Dubai-based corporate front highlights the challenges of regulating cross-border investment solicitations. By invoking foreign jurisdictions, fraudsters can complicate legal recovery efforts and due diligence. This case serves as a cautionary tale regarding unverified investment opportunities and the importance of checking the registration status of firms with national financial regulators.

Sources

This report draws on official police documentation from Rajkot, details from the Bharatiya Nyaya Sanhita, and analysis of Ponzi scheme mechanics from financial watchdogs.