Hyderabad: A man was arrested by the Hyderabad city police on Saturday, February 1 for allegedly cheating investors by promising profitable business opportunities.

The arrested has been identified as Kaswaraju Hiranmahe, 59, a resident of Gandhi Nagar, Secunderabad.

According to the police, the accused man started a business establishment named ‘Ration Bio Products’. He promised to supply bio enzyme-based cum chemical-free floor and washroom cleaning liquids.

In 2021, the complainant Subhash invested in Ration Bio Products after the accused Kaswaraju Hiranmahe promised him a 40 per cent stake in the company and assured an annual turnover of Rs 100 crore by March 2024.

The police said that Subash did not receive any of the agreed shares nor the promised returns.

The police said Kaswaraju duped more investors in similar ways, including Novai Tek India Pvt Ltd and Eco Nexus Cleaners.

According to the police, Swaroop from Novai Tek India Pvt Ltd invested a total of Rs 36 lakh and Mehra from Eco Nexus Cleaners invested Rs 50 lakh in the accused Kaswaraju’s firm.

Kaswaraju allegedly violated agreements made with the firms at the time of investment.

The investors also allege that the products made and supplied by Kaswaraju were of substandard quality and had high chemical content.

He duped the investors and was absconding before getting arrested by the team headed by police task force inspector K Saidulu.

Kaswaraju was charged under sections 316(2) (criminal breach of trust), 318(4) (cheating and fraud) of Bharatiya Nyaya Sanhita (BNS).