Hyderabad: The Telangana CID on Friday, June 19, said it has arrested an Executive Vice President of a digital payment processing company in connection with the Falcon Invoice Discounting “fraud” case.

The case pertains to the operation of the Falcon Invoice Discounting application and website, through which the accused allegedly created fake investment deals in the names of reputed multinational companies and induced investors with promises of high returns in short-term plans.

Investigations revealed that approximately Rs 4,215 crores were collected from 7,056 depositors across the country. Out of these, 4,065 victims were allegedly cheated to the tune of Rs 792 crore through M/s Capital Protection Force Pvt Ltd, operating under Falcon Invoice Discounting, a release from Telangana CID said.

Based on complaints received from victims, cases were registered under relevant provisons of the BNS and the Telangana State Protection of Depositors of Financial Establishments Act, 1999, and subsequently transferred to CID for investigation.

Several additional cases have also been registered against the main accused and associates across the country, it said.

The CID said investigation disclosed that the Executive Vice President of the digital payment processing firm allegedly colluded with the principal accused and facilitated the collection of deposits by providing payment gateway services through the firm.

The company is found to have received approximately Rs 7.53 crore as transaction-related earnings from the fraudulent operations, it said.

Several accused including directors, executives, and a Chartered Accountant were earlier arrested in connection with the case for alleged unauthorised collection of deposits involving criminal breach of trust, cheating, and criminal conspiracy.

Operating since 2021, the accused continuously recruited new depositors to pay returns to earlier investors, forming a Ponzi scheme.

The funds collected were diverted into various shell companies. By January 15, 2025, the scheme collapsed, promised returns were halted, and the office in Hyderabad was shut down, prompting depositors to file complaints, police had said.