Case of Highrich Ponzi scheme is turned over to CBI by the Govt

The Central Bureau of Investigation (CBI) has taken up the investigation into the purported financial fraud committed by Thrissur-based Highrich Online Shoppe Limited from the state government.

The head of state police had suggested to the government that the Crime Branch investigate the matter be turned over to the CBI. The company’s proprietors are charged with using a Ponzi scheme to extort more than Rs 1,100 crore from investors. The company’s internet streaming platform and cryptocurrency both accepted deposits. The business is being investigated by the Enforcement Directorate for possible financial violations. Nineteen charges have been filed by the police against the company at different stations.

Earlier in the assembly, Chief Minister Pinarayi Vijayan said that the founders, Sreena Prathapan and Prathapan K D, had received an investment of Rs 3,141 crore.

Digital vouchers were purportedly used by the corporation to manage its operations. The vouchers may be purchased for either Rs 10,000 or Rs 700. Investors benefited from an increase in the chain’s size via commissions. In the manner of a classic Ponzi scheme, the money raised was redistributed to participants as a commission or incentive. The business and its promoters skimmed off the remainder as profit.

In addition, Highrich raised funds by promising large returns on investments made on its OTT platform, HR OTT.