The Crime Investigation Department of Telangana has arrested Vikas Kumar Sakhare, former Chief Operating Officer (COO) of Falcon Group, for allegedly orchestrating a large scale investment fraud that attracted deposits from thousands of individuals.
On February 26, 2026, CID Additional Director General Charu Sinha announced that Sakhare was taken into custody at his Hyderabad residence.
The investigation links him to the development of the Falcon Invoice Discounting Application, which was used to create fictitious deals in the names of reputed multinational corporations.
Depositors were promised high interest rates and were induced to invest through social media advertisements and tele‑callers.
Reports suggest that the scheme collected approximately ₹4,215 crore from 7,056 depositors. Of this amount, 4,065 investors were cheated out of ₹792 crore by Capital Protection Force Private Ltd, operating under the Falcon app.
The operation began in 2021 and functioned as a classic Ponzi model, using funds from new investors to pay returns to earlier participants.
Read More: IDFC First Bank Fraud Case: ₹590 Crore Scam, 4 Arrested in Haryana!
Victims filed complaints that led to three cases under the Banking Regulation Act and the Telangana State Protection of Depositors of Financial Establishment Act, 1999. These cases were transferred to CID for further inquiry.
Additionally, 10 cases have been lodged against the company and its directors across various states.
Authorities allege that the collected funds were diverted to multiple shell companies before the scheme collapsed on January 15, 2025, when promised returns stopped and the Hyderabad office shut down.
The arrest of the ex-COO highlights the extensive nature of the fraud that affected thousands of investors and involved billions of rupees. Ongoing investigations aim to recover the misappropriated funds and hold the responsible parties accountable.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 27, 2026, 1:13 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN