Mangaluru: Nepal-based investment fraud exposed; hundreds of crores cheated, 11 arrested

Mangaluru: Nepal-based investment fraud exposed; hundreds of crores cheated, 11 arrested

Mangalore Today News Network

Mangaluru, Feb 6, 2026: In a major operation, the Mangaluru City Central Crime (CEN) Police have busted an interstate and international investment fraud racket that was operating from Nepal and targeting Indian citizens. A total of 11 accused have been arrested, said Mangaluru City Police Commissioner Sudheer Kumar Reddy.

According to the investigation, the fraud network consisted of 16 Indian nationals along with Chinese citizens. Nepal Police have arrested the Chinese accused, while five Indian suspects are currently absconding and efforts are underway to trace them.

During the technical examination of the accused persons’ mobile phones and laptops, details of 624 bank accounts were found. More than 4,580 complaints have been registered against these accounts on the NCRP portal across the country. It was also revealed that transactions amounting to ₹167 crore had taken place through a single bank account.

In the case registered at the Mangaluru CEN Crime Police Station, it was proven that the fraudsters cheated the complainant by transferring ₹1.38 crore into 10 different bank accounts. Investigation further revealed that transactions worth approximately ₹30.70 crore were carried out through these accounts.

The accused lured investors through social media by promising high returns, transferred money into multiple bank accounts, and later converted the funds into USDT (cryptocurrency) and sent them abroad. The entire operation was controlled by a gang based in Nepal.

Another team operating from countries such as Cambodia and Dubai was also involved. This group used Indians residing abroad to speak in local languages, gain the trust of investors, and persuade them to invest money.

Police have issued a warning to the public about digital fraud and urged awareness regarding cases where youth are deceived with promises of overseas jobs and trapped in fraudulent networks. So far, six such victims have been rescued in Dakshina Kannada district, and related cases have been registered.

The police have advised investors and the general public not to fall for schemes promising unusually high returns, to invest only through SEBI-registered institutions, and to immediately call 1930 and lodge a complaint at the nearest police station in case of cyber fraud.

During the operation, police seized 21 mobile phones, one laptop, 20 SIM cards, and 20 debit/credit cards, Commissioner Sudheer Kumar Reddy stated at a press conference held on Thursday, February 5.