Madhya Pradesh Police Remand 600 Crore Double Money Scam Mastermind Somendra Kankarayne Until August 6 Police in Balaghat, Madhya Pradesh have remanded 12th-pass mastermind Somendra Kankarayne and his associates until August 6 in connection with a massive 600 crore rupee Ponzi scheme. Investigative details surrounding the massive 600 crore rupee Ponzi racket in Balaghat district of Madhya Pradesh have revealed how a 12th-pass individual named Somendra Kankarayne orchestrated the state's largest double money scam. Operating right under the eyes of local authorities between 2016-17 and 2022, the fraudulent network targeted unsuspecting residents across Balaghat and two neighboring districts. Law enforcement agencies have intensified their crackdown, securing police remand for the mastermind and his key accomplices until August 6. From Agricultural Trading to Real Estate and Illegal Ponzi Operations Somendra Kankarayne originally moved to Balaghat after completing his 12th grade to pursue a B.Com degree. However, he discontinued his higher education midway and returned to his native village of Bolegaon. Upon returning, he established an agricultural grain trading business. His strategy involved purchasing grain directly from local farmers, storing it in warehouses, and releasing it to the market only during supply shortages or price surges, allowing him to earn substantial profit margins. Following his success in grain trading, Somendra transitioned into real estate investments, putting funds into a company called My Homes. He initially liquidated his ancestral land holdings to raise capital and subsequently convinced his relatives to sell their properties to finance further investments. In 2019, his real estate venture collapsed when My Home company allegedly cheated him out of his money. Rather than stepping away from risky financial deals, Somendra turned to designing an unsustainable double money Ponzi scheme to trap gullible investors. Political Allegations and Surfacing Accusations Against Local Leaders The financial scandal quickly escalated into a major political issue in the region. Former MLA Hina Kaware publicly raised allegations against BJP district president Ramkishore Kaware during a public event, questioning how political figures managed to withdraw their funds while common citizens suffered losses. She noted that multiple victims approached her stating that the BJP leader had successfully recovered his investment while their life savings remained locked in the scheme. Ramkishore Kaware offered no response from the stage regarding these assertions. Additionally, former MP Kankar Munjare leveled serious accusations regarding political patronage extended to the perpetrators. He claimed that following Somendra Kankarayne's initial arrest, BJP leader Ramesh Bhatere frequently visited him in prison and delivered food to him. Kankar Munjare also pointed fingers at former minister Gaurishankar Bisen and Ramkishore Kaware, asserting that Ramesh Bhatere actively provided political protection to sustain Somendra's illicit enterprise. Network Expansion, Unrealistic Terms, and Coercive Recoveries By 2019, Somendra brought associates Hemraj Amadare and Ajay Tidke into his core operations. Hemraj initially functioned as an assistant to Somendra. The scheme originally promised investors a 100 percent return within 1 year. To attract more funds rapidly, Hemraj Amadare reduced the doubling timeframe to just 9 months. As public suspicion grew and the financial model neared collapse, Ajay Tidke rolled out an even more desperate plan promising to double invested capital within merely 3 months. These absurd return timelines accelerated the breakdown of the hollow model. When payouts stopped, influential high-stakes investors resorted to hiring muscle and local goons to recover their money. Local public reports also indicated that a prominent political leader abducted the mastermind for nearly a week, forcibly extracting 4 crore rupees after having initially invested 2 crore rupees into the scheme. Mechanism of Fraud and Statements by Law Enforcement In its initial stages, the operators paid out doubled returns to early participants to project credibility. However, SP Aditya Mishra clarified that the organizers possessed no legitimate business or investment model capable of generating such high yields. He explained that the setup functioned as a classic Ponzi scheme, where funds collected from newer depositors were disbursed to satisfy previous investors. Satisfied early investors frequently reinvested their payouts back into the system, compounding the hidden deficit. The scheme crumbled when incoming cash flow from new victims failed to cover mounting liabilities. On May 17, law enforcement officials arrested Somendra and his associates under the BUDS Act 2019 (Banning of Unregulated Deposit Schemes Act). Although Somendra secured bail on July 27, 2022, he has been re-arrested and placed back in police custody, with the court granting police remand through August 6. SIT Seizures: Confiscated Land Documents and Financial Instruments A Special Investigation Team (SIT) assigned to the case conducted extensive raids, recovering significant documentary evidence and assets linked to the syndicate. The key items seized by the SIT include • 122 Property Registries: Land registration deeds for 122 properties valued at approximately 18 crore 61 lakh rupees. • 617 Financial Checks: A total of 617 checks worth an aggregate amount of 14 crore 82 lakh 24 thousand 291 rupees. • Investor Ledgers: 20 detailed registers containing names, deposit amounts, and contact details of investors. • Additional Documentation: Land loan passbooks (bhu rin pustikaen), power of attorney papers, and nearly 1500 signed blank checks. Impact on Victims and Ongoing Police Helpdesk Verification The fraud devastated hundreds of families across Balaghat and two neighboring districts. Driven by promises of rapid wealth creation, several farmers sold off their agricultural land, while others mortgaged family gold ornaments to participate. To streamline grievances, Balaghat police established a Double Money Helpdesk. Authorities are publishing investor lists in phases and conducting physical verification of claim documents. Meanwhile, victimized residents have urged law enforcement to take stern action against local agents who acted as middlemen for the scheme. What this means for you • Across India: Investors must verify the regulatory registrations and compliance under the BUDS Act 2019 before putting money into unregulated schemes promising high returns. • In Balaghat (Madhya Pradesh): Victims who lost funds to double money schemes or local agents should visit the dedicated police helpdesk immediately for document verification and claims processing. Questions & Answers 1. What is the total estimated value of the Balaghat double money scam? According to Balaghat police, the total estimated value of this double money Ponzi scheme is around 600 crore rupees. 2. Who is considered the mastermind behind this Ponzi scheme? The primary mastermind behind the scam is 12th-pass Somendra Kankarayne, who initially began his business operations in Bolegaon village. 3. What items were recovered by the SIT during the investigation? The SIT confiscated 122 land property registries worth Rs 18.61 crore, 617 checks valued at Rs 14.82 crore, 20 investor ledgers, land loan passbooks, power of attorney documents, and nearly 1,500 blank checks. 4. How did the money doubling terms evolve over time? Somendra initially promised to double money in 1 year, which Hemraj Amadare later reduced to 9 months, and Ajay Tidke further slashed to 3 months. 5. What steps are Balaghat police taking to assist affected investors? Balaghat police established a dedicated Double Money Helpdesk to verify documents and process victim claims based on published investor lists. https://trendkia.com/en/national/madhya-pradesh-ke-balaghat-men-600-karora-rupaye-ka-ponji-ghotala-6-agasta-taka-pulisa-rimanda-para-mukhya-aropi-somendra-kankaray-13902 TrendKia — Har trend, sabse pehle.