Vardhman Group Chairman SP Oswal Defrauded of Rs 7 Crore by Gang Posing as Government Officials

Vardhman Group CEO S P Oswal

  • 82-Year-Old Industrialist SP Oswal Defrauded of Rs 7 Crore in Elaborate Scam Involving Fake Government Officials and Virtual Courtroom

Ludhiana, October 2, 2024 — In a disturbing case of high-profile fraud, SP Oswal, the 82-year-old chairman and managing director of Vardhman Group, one of India’s leading textile manufacturers, was defrauded of Rs 7 crore by a gang impersonating government officials, including the Chief Justice of India (CJI), DY Chandrachud. The elaborate scam, which unfolded over two days, involved fake documents, a virtual courtroom, and relentless intimidation, leaving Oswal under “digital arrest” for 48 hours.

Thanks to swift police action, more than Rs 5 crore has been recovered, marking one of the most significant fraud recoveries in recent times.

A Sophisticated Scam Targeting an Industrialist

The scam took place on August 28 and 29, 2024, when Oswal was manipulated into transferring Rs 7 crore to multiple bank accounts after being falsely told he was a suspect in a money laundering case. The fraudsters convinced Oswal that his identity was linked to an ongoing investigation involving financial irregularities tied to Naresh Goyal, former chairman of Jet Airways.

According to Oswal’s recount in an interview with NDTV, the fraudsters posed as Central Bureau of Investigation (CBI) officials and claimed an account had been opened in his name using his Aadhaar details. They further informed him that this account had been involved in suspicious transactions, coercing him into believing that his identity was being misused and that he was under investigation.

Fake Courtroom Setup with CJI Chandrachud Impersonation

One of the most shocking elements of the scam was the creation of a virtual courtroom where a man impersonating CJI DY Chandrachud presided over Oswal’s supposed case. During a video call, Oswal was shown a fraudulent court order directing him to deposit Rs 7 crore into various bank accounts. The order was later sent to him via WhatsApp, along with a fake arrest warrant bearing the Enforcement Directorate (ED) logo and the signature of an official named Niraj Kumar.

The gang’s attention to detail was chilling. The fake court documents bore the official emblem of the Supreme Court, a barcode, and a digital signature that closely resembled those found in real legal documents. These convincing elements left Oswal in fear of legal consequences.

Intimidation Tactics and ‘Digital Arrest’

The fraudsters escalated their scheme by placing Oswal under “digital arrest,” claiming that he was a suspect and warning him not to discuss the case with anyone due to the National Secrets Act. They threatened him with jail time if he revealed any details and kept him under 24-hour video surveillance, even monitoring his movements when he left his room.

The gang further manipulated Oswal by having him draft a letter requesting a priority investigation, convincing him they were trying to clear his name. “I was overwhelmed by their intimidation and assurances that they were going to protect me,” Oswal told NDTV, adding that the sophistication of the fake documents made him believe the investigation was genuine.

Police Investigation and Arrests

The scam was uncovered after Oswal filed a complaint on August 31. With assistance from the cybercrime coordination center under the Union Home Ministry, police froze three bank accounts linked to the fraud and successfully recovered Rs 5.25 crore.

Two suspects, Atanu Chowdhury and Anand Kumar, were arrested in Guwahati, Assam. Kumar, a small trader, told police he had been lured into the scheme with promises of quick money. He said he was told his account would be used to process gaming prize funds and that he would receive a share of the proceeds. However, instead of Rs 2 crore, Rs 9.2 crore was deposited into his account.

The police suspect an inter-state gang is behind the elaborate scam. The alleged mastermind, Rumi Kalita, a former bank employee, remains at large, along with several others, including Nimmi Bhattacharya, Alok Rangi, Gulam Murtaza, and Zakir. Authorities are continuing the investigation to bring all involved to justice.

A Cautionary Tale for Business Leaders

This case highlights the growing complexity of financial fraud schemes in India. The involvement of high-ranking officials and detailed fake documents underscores the lengths criminals will go to exploit the trust of unsuspecting victims.

The police have urged the public, particularly senior citizens and business leaders, to remain vigilant against such scams and report any suspicious activities immediately.

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