The company promised people that the amount they invest would double within a year. (Representational)
The owner of a motorcycle taxi firm Bike Bot has been sent to three-day police custody by a Delhi court in a Rs 1,300 crore fraud case.
The firm allegedly duped over two lakh investors of more than Rs 1,300 crore through a ponzi scheme.
Chief Metropolitan Magistrate (CMM) Purshottam Pathak sent Sanjay Bhati to custody on Monday after police said his custodial interrogation was required to investigate the entire conspiracy.
There are more than 30 cases registered against Bike Bot for various offences, including fraud, forgery criminal intimidation and criminal conspiracy.
The Crime Branch of Delhi Police had sought seven days' custody, which was opposed by Sanjay Bhati's lawyers.
They told the court that the custodial interrogation was not required since no further recovery was to be done. Considering the facts, the court granted three-day custody to the Crime Branch.
The company's bike taxis have been operating in Gautam Buddh Nagar, Ghaziabad, Hapur and Bulandshahr in western Uttar Pradesh, while its network is also active in Rajasthan, Madhya Pradesh and Haryana.
The investors, mostly retired and serving government officials, invested Rs 62,100 each in the ''multi-level marketing'' scheme that promised doubling the amount within a year, the FIR said.