Bike Bot bike taxi owner accused of Ponzi fraud; surrenders

According to a media report, Sanjay Bhati - the owner of Bike Bot, a motorcycle taxi firm, has been accused of duping over two lakh investors of more than Rs 1,300 crore. He has now surrendered in the district court in Surajpur, Greater Noida and has been placed under judicial custody for 14 days. The police plan to appeal in court for his custody. He is being booked under the Gangster Act. It is also reported that Bhati's partner, Vijaypal Kasna, was arrested last week and that nine to ten more partners are absconding.

It is said that all the investors invested Rs. 62,100 in the company after being promised monthly returns and doubling of the investment within one year. Investors were also assured of an extra bonus if they referred others. About 2.25 lakh people invested and the total amount was more than Rs. 1,300 crores. The company used social media, pamphlets and motivators to spread the word. It is said that 33 cases have been registered against Bike Bot under the Indian Penal Code sections 420 (fraud), 406 (criminal breach of trust), 467 (forgery), 506 (criminal intimidation) and related offences.

Bike Bot operates around 7,000 bikes in Gautam Buddh Nagar, Ghaziabad, Hapur and Bulandshahr in Uttar Pradesh. It is also said to operate in Haryana, Madhya Pradesh and Rajasthan. Out of the 7,000 bikes, only 2,000 are said to be registered.

Source: Business Standard

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