Police said the accused has cheated people to the tune of crores of rupees

A 37-year-old man was arrested on Friday for allegedly cheating more than 500 people to the tune of crores of rupees by inducing them to invest in various Ponzi schemes and usurping the money, police said.

The accused was identified as Sanjeev Kumar, a resident of Ghaziabad, they said.

"A complaint regarding cheating through Ponzi schemes was received last year and the accused was arrested from Ghaziabad," senior police officer OP Mishra said.

Interrogation revealed that the accused and his associates had induced people to invest in different Ponzi schemes and usurped the money obtained from them, officials said.

Kumar has cheated more than 500 people under various schemes to the tune of crores of rupees, they added.

He first started a committee business in which several peoples invested money, police said.

The money was returned to the investors as per commitments. After gaining their trust, he opened a business of prize chit and money circulations and launched schemes projecting lucrative benefits, the officer said.

He started a scheme for 100 members, wherein each member contributed Rs 5,000. A lucky draw was opened every five months and the winner would be gifted either a Nano car or Rs 1.2 lakh, police said.

He started another scheme of 500 members, wherein each member had to contribute Rs 2,000. In this scheme, the lucky draw was opened every month and the winner was gifted Rs 50,000, they added.