The couple promised to double the amount of investors’ money, similar to the Halal Ponzi schemes that are frequent in the city.
A couple was arrested in Hyderabad on Thursday for allegedly defrauding people of over Rs 1.2 crore by promising to double their money, police said.
According to a Hyderabad police release, the woman is in charge of the Sikhs division of the Universal Islamic Research Center (UIRC) in Malakpet region.
The police have said that they have raised Rs. 1.2 crore from the Islamic Public School and from them, promising to invest the money and double their money and income in the three schemes run by them. According to the Deccan Chronicle, Siraj-ur-Rehman and his wife, Bushra Begum, persuaded the public to invest their money in Heera Group companies Heera Gold, Heera Foods and Heera Retail and IPS.
However, they failed to pay any returns or deposited amounts, and two cases were later filed by the police under the Indian Penal Code and the Telangana Protection of Depositors of Financial Establishment Act.
Further investigation led to their arrest, police said.
Hyderabad has witnessed some major financial scandals in the past, including the Hira Gold Halal Ponzi scheme, which has betrayed thousands of people in India and around the world. In another case, the lucky draw scheme was used to collect money from victims on the promise of lucrative gifts.
Halal investments are non-interest investments in accordance with Islamic Sharia laws. Unlike fixed bank interest rates, which are considered anti-Islam, halal schemes sell their plans as a form of partnership business with the promise of high returns. Such schemes usually yield higher returns than banks. Hira Gold has promised a 36% share return on its investment, while the Malakpet couple has promised to double the investment amount.