A massive financial scam has come to light, leaving scores of investors in distress, scores of people in Hospet have fallen prey to an elaborate scam, lured by the promise of high-interest returns on their investments. The accused, led by one Mumtaz Begum and her associates, allegedly defrauded investors of over ₹100 crores, leaving many financially crippled and demanding justice.
The fraudulent scheme came to light when a complaint was filed by a resident, M. Anisha, who stated that she was swindled out of ₹1.20 crore and her friend Raghavendra lost ₹30 lakh. Police have since arrested two individuals connected to the scam, while a manhunt is underway for the main accused and others involved.
A Trap Disguised as a Golden Opportunity
The modus operandi of this scheme was disturbingly simple yet highly effective. Victims were promised exceptionally high returns, with claims of a 16% interest rate on investments. To make the scam more convincing, Mumtaz Begum’s son-in-law, Syed Zubair, allegedly showcased fake businesses, including a share trading firm in Kerala, a petrol pump, a gold business, real estate investments, and a pipe factory in Bengaluru. This facade convinced investors that their money was safe and growing.
What seemed like a golden opportunity turned into a nightmare. Many victims borrowed money, sold their homes, and liquidated their life savings, hoping for lucrative returns. Instead, they were left empty-handed as the accused allegedly siphoned off the funds.
Outrage on the Streets
As the extent of the scam unraveled, angry victims have taken to the streets, demanding swift action against the fraudsters. Many of them, now in deep financial distress, claim that Mumtaz Begum and her associates resorted to threats and intimidation when asked to return the money. Reports suggest that some victims were even subjected to harassment and pressure tactics to silence them.
Police Action and Ongoing Investigation
Authorities have launched a full-scale investigation into the fraud. A case has been registered at the Hospet Town Police Station, and bank accounts linked to the accused have been seized. The District Superintendent of Police, Sriharibabu B.L., confirmed that two individuals from Kerala connected to the scam have been arrested, while efforts are underway to nab Mumtaz Begum and other key players in the racket.
An FIR has been registered against Mumtaz Begum, Nasreen, Arifa Begum, M. Javed, R. Nabhirasul, Taslim Banu, Syed Zubair (Bengaluru), and Jabir Janashery (Kozhikode, Kerala). Police believe that several more victims have yet to come forward, and the total fraud amount could be even higher than currently estimated.
The Lesson: If It Sounds Too Good to Be True, It Probably Is
This case serves as a stark reminder of how greed and misplaced trust can lead to financial ruin. Scammers often prey on people’s desire for quick and easy returns, using elaborate deception to appear credible. Financial experts urge the public to verify investment opportunities thoroughly, avoid high-risk schemes, and be cautious of unrealistic promises.
As authorities intensify their crackdown on the perpetrators, victims remain hopeful for justice. But for many, the damage—both financial and emotional—is already done.