Police Recover Cash, Gold, and Vehicle Worth Nearly ₹36 Lakh; Investigation Suggests Scam Exceeds ₹6.19 Crore
Bhavnagar Fariadka Stock Market Scam has taken a significant turn after the Local Crime Branch (LCB) arrested two cousins accused of allegedly running an investment fraud by promising investors an unrealistic monthly return of 20%. Investigators say the accused attracted people with high-profit assurances and allegedly collected crores of rupees before failing to return their investments.
Following the arrests, police recovered cash, gold ornaments, a car, and other assets worth approximately ₹35.94 lakh. Officials also revealed that the total amount believed to be involved in the fraud has now crossed ₹6.19 crore, making it one of the major alleged investment scams reported in the Bhavnagar district in recent months.
Investors Lured with Promise of High Monthly Returns
According to investigators, the accused, identified as cousins Yogesh Dhamecha and Sanjay Dhamecha, residents of Fariadka village near Bhavnagar, allegedly persuaded people to invest money by claiming they could generate a 20% return every month.
Police said the scheme initially attracted several local investors, with at least six individuals reportedly investing a combined ₹93.90 lakh over different periods. The unusually high return promised by the accused reportedly convinced many people that the investment opportunity was genuine.
However, when investors later demanded repayment of their money or the promised returns, the accused allegedly delayed payments and eventually stopped returning the funds, prompting complaints to the police.
Criminal Case Registered Under BNS and GPID Act
Based on the complaints received, a case was registered on July 6 at the Vartej Police Station under relevant provisions of the Bharatiya Nyaya Sanhita (BNS), 2023, along with provisions of the Gujarat Protection of Interest of Depositors (GPID) Act, which is designed to protect investors from fraudulent deposit schemes.
The investigation was later transferred to the Bhavnagar Local Crime Branch, which traced and arrested both accused for further questioning.
Police Custody Leads to Recovery of Assets
The court granted police custody of the accused until July 13, 2026, allowing investigators to interrogate them regarding the alleged fraud and trace the money collected from investors.
During the investigation, police said the accused disclosed that part of the investment money had been used to purchase valuable assets while some cash remained in their possession.
Based on these findings, officers recovered property and valuables worth ₹35.94 lakh, including:
| Recovered Item | Estimated Value |
|---|---|
| Cash | ₹20,00,000 |
| Gold ornaments | ₹8,23,500 |
| Suzuki Dzire car | ₹7,00,000 |
| Access scooter | ₹70,000 |
| Currency counting machine | ₹1,000 |
| Account books and financial records | 3 registers |
Police believe the seized account books could play a crucial role in identifying additional investors and tracing the movement of funds.
Investigation Expands as More Victims Come Forward
The investigation has widened considerably since the arrests. According to the Local Crime Branch, statements from 103 witnesses, including investors and other individuals connected to the case, have been recorded so far.
Investigators now estimate that the accused still owe investors approximately ₹6.19 crore, suggesting that the scale of the alleged fraud is far larger than initially reported.
Officials are examining financial records and handwritten account books recovered during the investigation to identify further victims, verify transactions, and determine whether additional individuals were involved in operating the alleged investment scheme.
Authorities Continue Financial Investigation
Police have indicated that the investigation remains ongoing and that more details could emerge as financial documents are examined. Officials are also working to identify the complete network of investors and establish the full extent of the alleged fraud.
Authorities have urged investors to exercise caution before investing in schemes that promise unusually high or guaranteed returns. Financial experts generally warn that offers claiming exceptionally high monthly profits should be carefully verified, as legitimate investments are subject to market risks and rarely guarantee such returns.
As the Bhavnagar Stock Market Scam investigation progresses, law enforcement agencies are expected to continue tracing assets, identifying affected investors, and taking further legal action based on the evidence collected.