Khanna Police in Punjab have arrested eight individuals in connection with a large-scale Ponzi scam. The scam involved an organic farming firm called “Generation of Farming.” The firm allegedly promised investors exceptionally high returns, leading to over 23,000 people investing a total of Rs 170 crore.
According to Khanna Senior Superintendent of Police (SSP) Jyoti Yadav, the firm lured people by promising an 8% monthly return on their investments. They claimed that the invested money would double within 25 months. The company presented itself as being involved in the organic products business, including supplying vermicompost manure and setting up organic farming projects. However, these promises were never fulfilled.
SSP Yadav stated that the accused used the money obtained from investors to buy land. They then resold this land at higher prices, making substantial profits. Police have registered three First Information Reports (FIRs) against the firm’s owners and representatives. These FIRs were filed at the Samrala police station on September 17, 18, and October 4. The charges include cheating, forgery, and organised crime, along with violations of the Prize Chits and Money Circulation (Banning) Act, 1978.
During the investigation, police seized electronic devices such as laptops, CPUs, monitors, and mobile phones from the firm’s office. Records from the Registrar of Firms and Registrar of Companies revealed that nine other related firms are connected to the same accused individuals. Furthermore, 44 bank accounts have been frozen by the police. These include 21 accounts registered in the company’s name and 23 personal accounts. The total amount frozen in these accounts is Rs 1.15 crore.
Police investigations also uncovered that fake UDYAM certificates were used to open company accounts. The address provided as the office was found to be fictitious. Additionally, six benami, or proxy, properties linked to the accused have been identified and verified.
So far, the police have identified 23,249 investors who collectively invested Rs 170.57 crore in the firm. The arrested individuals have been identified by name and village. The police are urging any victims of this scam to contact the Special Investigation Team (SIT) to provide their statements. This case highlights the dangers of investment schemes promising unrealistic returns, even when disguised as legitimate businesses like organic farming.