Swift movement of massive money is bound to attract all kinds of attention. Not surprisingly, DNA investigations reveal that funds of several underworld operators is the force behind many of the Ponzi schemes that promise to give up to 400% guaranteed annual returns on your basic investment.
On Wednesday, a DNA report revealed that over 35 ‘investment firms’ have cropped up in the city offering unimaginable financial returns. They claim to be making money by investing in stock market, bullion, commodities and foreign exchanges. However, such returns are not acceptable by bankers who decry the schemes, saying they are ‘scams’ waiting to burst.
A reliable source confides that several local former anti-social elements have got involved in this money multiplier business. One such financial operator Altaf, who too has started an incognito office just about a month ago, claims that the daily income of this market is between Rs80 lakh and Rs1 crore. He has around 17 agents who operate on his behalf in Ahmedabad’s Juhapura, Jamalpur, Sarkhej, Shah-e-Alam and Astodia areas.
“From Gujarat alone, the monthly turnover is estimated to be in the range of Rs150-200 crore. The ‘funda’ here is nothing but definite tips. “There are only two people in India whose tips work,” Altaf softly says, refusing to elaborate the names.
“These two people operate through several intermediaries, with whom our brokers are constantly in touch. We give the money to them, they trade on our behalf. There is no medium- or long-term investment; constant trading is going on,” he explains.
Altaf’s partner Shahnawaz confides that all kinds of ‘investment firms’ operating under different names offering different rates of return are directly or indirectly affiliated with these ‘two people’.
The collective investment of all these investors goes into a common pool, which moves as a collective force in the market. Very rough estimates are that it totals up to approximately over Rs600 crore, Altaf claims.
“With a force like that in the market, major losses can be controlled as the eggs are distributed in several baskets. Even at a time if global markets crash, we have the capacity to pay investors for at least two months,” a self-assured Altaf calmly stated.
Are these schemes operational elsewhere in the country?
The answer to this is ambiguous, as Altaf says no but then fails to explain why. “It would kick off a storm if it was operational in Maharashtra, but I am not sure why it has not happened yet,” he replies, shrugging. He admits that these investment firms target the lower or middle income group mainly because of their lack of education and understanding of the financial markets and they would not probe too much.
“Muslims have been given to believe that trading on the stock market is ‘haraam’. Therefore an average Muslim is very unlikely to have much knowledge about the operational aspects of stock markets and the risks thereof. We operate very covertly, without attracting any attention whatsoever. No widespread marketing or advertising, only word of mouth,” the young businessman said.
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