A fresh alleged investment fraud has surfaced in Karnataka’s Belagavi, where more than 3,500 investors have accused Apex Bizcorp LLP of collecting nearly ₹165 crore through a high-return investment scheme.

Investors allege that the company promised returns of 4% per month, equivalent to approximately 48% annually, before communication from its management abruptly stopped.

The allegations have not yet been officially established, and authorities are expected to determine the facts through investigation.

Hundreds of Investors Stage Protest

Hundreds of investors gathered outside the office of the Belagavi Deputy Commissioner and demanded immediate action against the company.

According to protesters, those affected include:

• Farmers
• Daily wage labourers
• Small investors
• Salaried individuals
• Families who invested personal savings

The investors have requested a comprehensive investigation into the company’s operations and the immediate preservation of its assets.

Investments Allegedly Started From ₹50,000

According to the investors, the scheme accepted deposits beginning at approximately ₹50,000.

The company allegedly represented that the collected funds would be invested in:

• Real estate
• Fixed deposits
• Options trading
• Other business ventures

Investors claim they were assured that these activities would generate regular returns of 4% every month.

48% Annual Return Promise Raises Questions

A return of 4% per month translates to approximately 48% annually before compounding.

Such promised returns are significantly higher than conventional regulated investment products and represent a major warning sign where the underlying business model, risk profile and financial disclosures are not independently verifiable.

Investigators are expected to examine whether the returns initially paid to investors came from genuine profits or from money collected from later participants.

Scheme Allegedly Promoted Through Informal Networks

Investors claim the scheme was promoted primarily through:

• Personal contacts
• Mobile messages
• Promotional events
• Referral networks
• Informal assurances

They allege that formal investment documentation, transparent financial disclosures and detailed risk explanations were limited or unavailable.

Such informal distribution channels can make it difficult for investors to verify the legal and regulatory status of an investment opportunity.

Communication From Management Allegedly Stopped

According to protesters, the company initially provided returns and reassurances.

However, communication from the management allegedly stopped later, leaving investors unable to:

• Withdraw their principal
• Receive promised returns
• Obtain reliable account statements
• Contact company representatives
• Verify the status of their investments

The sudden loss of communication prompted investors to approach the district administration.

Investors Seek Freeze on Bank Accounts and Properties

The affected investors have requested authorities to examine and, where legally justified, freeze:

• Company bank accounts
• Properties
• Financial assets
• Promoter-linked accounts
• Related business holdings

Such measures may help preserve available assets while investigators establish the amount collected, movement of funds and potential investor claims.

Promoter’s Location Under Verification

Investors have alleged that the company’s Chairman and Managing Director, Kashinath Waghamare, is currently in Dubai.

They have also claimed that the whereabouts of other directors are being traced.

Authorities have not officially confirmed these allegations, and the location and role of the company’s management remain matters for investigation.

Financial Records Likely to Be Examined

A comprehensive investigation would typically include review of:

• Bank account statements
• Investor deposit records
• Company financial statements
• Investment agreements
• Promoter accounts
• Related-party transactions
• Property and asset purchases
• Digital communications
• Tax and regulatory filings

The objective would be to determine how much money was collected, how it was used and whether sufficient assets remain available for recovery.

Warning Signs in High-Return Investment Schemes

Common warning signs include:

• Guaranteed monthly returns
• Returns significantly above market rates
• Lack of regulatory registration
• Informal investment documentation
• Heavy dependence on referrals
• Initial returns followed by payment delays
• Pressure to reinvest
• Sudden loss of communication

Investors should not treat early payouts as proof that a scheme is legitimate, because some fraudulent schemes use initial payments to build confidence and attract larger investments.

How Investors Should Verify a Scheme

Before investing, individuals should independently verify:

• Company registration
• Regulatory approval
• Audited financial statements
• Source of promised returns
• Promoter background
• Beneficial ownership
• Existing complaints or litigation
• Withdrawal and refund conditions
• Whether the product is regulated by SEBI, RBI or another competent authority

All payments should be routed through traceable banking channels and supported by clear written documentation.

Conclusion

The allegations involving Apex Bizcorp LLP have raised serious concerns among thousands of investors in Belagavi.

Authorities have not yet reached any final conclusion regarding the alleged ₹165 crore fraud. Further legal or administrative action will depend on verification of financial records, statements of investors and evidence collected during the investigation.

Shunyatax Global Insight

Shunyatax Global says that a promised return of 4% per month or 48% annually should trigger immediate due diligence because such returns are rarely sustainable without exceptionally high risk.

Investors should verify the regulator, audited accounts, business model and actual source of profits before transferring funds. Where communication stops or withdrawals are blocked, investors should preserve agreements, bank statements, messages and payment records so authorities can trace the money trail and identify recoverable assets.