The Economic Offences Wing (EOW) of Cyberabad police arrested Gogula Lakshmi Vijaya Kumar, chairman and managing director of M/s AV Infracon Pvt Ltd and M/s AV Organo Farms Pvt Ltd, for defrauding several investors to the tune of â¹8 crore.The arrest was made on Tuesday in Ongole district, Andhra Pradesh, following a complaint filed by a Hyderabad resident, Bhupathi Pradeep.The police said that Kumar is accused of cheating investors through a fraudulent investment, buy-back, and pre-launch schemes under the guise of high-return real estate offers. In the investment scheme, the accused promised â¹15 lakh on a â¹10 lakh deposit over one year. The buy-back scheme offered land registration in the depositorâs name, with a promise to repurchase it at 50% profit after a year. The pre-launch scheme involved sales of 2BHK flats in semi-gated or high-rise developments at below-market prices, with unrealistic delivery promises and high returns.To lend credibility, Kumar executed fake agreements of sale, MoUs, and sale deeds, leading investors to believe their investments were secured through registered properties. However, he failed to register plots or refund the deposits. Investigations revealed that the accused began operations in 2021 and the money collected was diverted into other business interests.The case has been registered under Sections 316(2), 318(4) of the Bharatiya Nyaya Sanhita, along with provisions of the Telangana Protection of Depositors of Financial Establishments Act, 1999. Investigations are ongoing to trace the other accused and recover the diverted funds.Meanwhile, the Cyberabad police have people to remain vigilant and verify all pre-launch and buy-back real estate offers through recognised authorities such as GHMC, HMDA, RERA and DTCP before making investments.Published - June 25, 2025 11:24 pm IST