Investment nightmare: Ex-servicemen agents and a scam of Rs 1,000 crore
Investors say the company attracted them with promises of high returns and “doubling” their deposits within 15 months. FIRs have been filed in both the states as also Uttar Pradesh against key individuals, including members of the chairman’s family and the board
Visakhapatnam: The Shreya Group of Companies from Uttar Pradesh, founded in 2020 by Hemant Kumar Rai, is caught in complaints of illegally collecting deposits and defrauding individuals in two Telugu states.
Investors say the company attracted them with promises of high returns and “doubling” their deposits within 15 months. FIRs have been filed in both the states as also Uttar Pradesh against key individuals, including members of the chairman’s family and the board.
The company reportedly gathered over Rs 1,000 crore from across the two Telugu states by employing ex-servicemen as agents.
Initially, the group offered a commission of Rs 2,080 for every deposit of Rs 1 lakh, which helped build significant trust among the prospective investors; and they were promptly paid interest. This led to a surge in deposits, primarily driven by word-of-mouth publicity. Motivated by commission and incentives, the agents facilitated a substantial inflow of public deposits.
Investors were drawn in by claims that their deposits would yield Rs 12,000 per month as interest for each Rs 1 lakh. However, many say they received only Rs 6,000 in the first month. The agents assured them that the full interest would be paid from the “next” month, reassuring them that their deposits would double within just 15 months.
Complaints have surfaced as interest and principal payments have stopped, prompting customers to lodge police complaints.
Investors say the company unlawfully collected crores of rupees nationwide, luring individuals with promises of substantial investment returns. FIRs have been filed against Hemant Kumar Rai at police stations in both AP and UP.
In Andhra Pradesh, an FIR has been lodged against 26 individuals, including Hemant Kumar Rai's wife, chief managing director Sangeetha Rai, and his daughter. Other named individuals include vice chairman Shreya Rai and several members of the director board, namely Gudem Srinivasulu, Kesava Reddy, Damodar Reddy, Ganta Nanaji, M Shekhar, Dokkari Padmavati, alongside North East India head and adviser Dokkari Tatayya, and south India head and adviser Guntla Maheshwar.
Another FIR has also been filed against the company at the Gomti Nagar police station in Uttar Pradesh.
Headquartered in Lucknow, the Shreya Group of companies has raised large sums from the public across the country. Most of the agents were ex-servicemen.