Chit Fund Scam: Father & Son Accused For Cheating Brothers Of INR 70 Lakh

The defendants are Umar Sayyid and his two sons, Danish Sayyid and Tufel Sayyid. The case was filed on January 7. They are booked and further investigation is underway.

Chit Fund Scam: Father & Son Accused For Cheating Brothers Of INR 70 Lakh
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Three people are the subject of a formal complaint filed by the Sakinaka police, Andheri East, for allegedly cheating two brothers out of about INR 70 lakh through a chit fund scam.

The defendants are Umar Sayyid and his two sons, Danish Sayyid and Tufel Sayyid. The case was filed on January 7. They are booked and further investigation is underway.

Narindersingh Kohli, 61, a resident of Chandivali, Sakinaka, is the complainant and the owner of a financial consulting firm, according to the FIR. A few years ago, he worked with real estate agent Umar Sayyid to rent a hotel room in Powai. As a result of Umar's regular visits to the hotel, the two became friends. Kohli was forced to shut down the hotel, nevertheless, because of the COVID-19 problem.

In January 2023, Umar reached out to Kohli and presented a guaranteed-return investment plan. According to Umar, he had established a chit fund, or bhisi, with 20 members and extended an invitation to Kohli to join, promising him substantial financial gains.

Kohli made the decision to contribute to the plan since he was saving for his son's wedding which is supposed to happen this year. The proposal was also communicated to his brother, Gurmeetsingh Kohli. Both brothers saw Umar after the talks, and he gave them his word that they would receive INR 30 lakh after 20 months provided they contributed INR 1.5 lakh a month to the chit fund.

Kohli started making monthly investments of INR 1.5 lakh. Umar asserted that other members had neglected to deposit their money when it came time for the dividends in September 2024. Later, the chit fund company was shut down by Umar and his sons, Tufel and Danish.

Prior to that, Umar convinced Kohli to put money into a different chit fund with 16 members in November 2023. The brothers made monthly payments of INR 2 lakh on behalf of two members. But Umar did not deliver when it came time for them to get the payoff. He refused to pay and attributed the lack of contributions to other members.

Umar gave his Fortuner Legender car, sharing agreement, and notarised documentation via WhatsApp in an effort to appease the two brothers. Umar pledged to pay the outstanding bank installments on the car, but he never did. He also neglected to reimburse the amounts that were put in the chit funds.

Umar and his sons enticed the brothers to participate in the chit funds between April 2023 and September 2024 by promising them large profits. The brothers were defrauded of INR 69,90,040, which included INR 47,05,790 in cash and INR 22,84,250 paid online. After discovering the deception, Kohli filed a report at the Sakinaka police station. The police then filed a case under the Bharatiya Nyaya Sanhita's sections 3 (5) (general explanations), 316 (2) (criminal breach of trust), and 318 (4) (cheating).

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