Mumbai Police’s EOW registers case against Moneyedge Group, arrests two promoters

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Mumbai Police's Economic Offences Wing (EOW) has registered a case against the Moneyedge Group of Companies and its affiliated entities for allegedly defrauding investors and misappropriating their funds.

According to the complaint filed by Rahul Poddar and other investors, the company's directors lured them with promises of a 24 per cent annual return.

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The EOW stated that the investigation has so far identified around 3,000 investors who collectively invested Rs 100 crore in the company. Out of these, statements from 100 investors have been recorded, revealing a total misappropriation of Rs 28 crore so far.

Acting on the complaints, the EOW has registered a case under Sections 409, 420, and 34 of the Indian Penal Code, along with provisions of the Maharashtra Depositors Act, 1999. In connection with the case, Hariprasad Venugopal and Pranav Ravarane promoters of the company have been arrested and produced before the court, which has sent them to police custody until January 22. The EOW has said that two directors are absconding.

The Moneyedge Group of Companies, operating through its four subsidiaries - Moneyedge Investments, Moneyedge Fincorp, Moneyedge Realtors, and Moneyedge Capital Services - allegedly raised Rs 2.80 crore from the complainant in the case between January 2022 and May 2024. While the company initially promised attractive returns, payments reportedly stopped after October 2024.

"When the complainant sought clarification from directors they allegedly failed to provide any satisfactory explanation. Frustrated by the lack of accountability, he filed a complaint with the EOW in October 2024." An officer of the EOW said.

The investigation has revealed serious violations of SEBI regulations by the Moneyedge Group, including the illegal diversion of funds collected from investors. Over 3,000 people entrusted the company with more than Rs 100 crore, drawn in by its lucrative promises. An EOW official explained that the firm, established in 2013, enticed investors with the assurance of a 24 per cent annual return. While the company initially disbursed 2 per cent returns on a monthly basis, the payouts abruptly stopped, sparking complaints from affected investors.