Nagpur: A massive investment fraud has rocked the city, with over 150 investors losing more than Rs 10 crore after being lured with false promises of doubling their money through stock market investments. The accused, identified as Arvind Yadavrao Parate (39), a resident of Sandesh City, Jamtha, has gone absconding after allegedly collecting huge sums under the guise of stock trading and finance schemes.
The Butibori Police registered a cheating case following a detailed complaint filed by Gopal Vitthalrao Khambalkar (65), a retired Deputy Executive Engineer from the Koradi Thermal Power Station (KTPS) and also a resident of Sandesh City.
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12 Oct 2025
According to the police, Khambalkar met Parate in 2022, when the accused introduced himself as an employee of the reputed brokerage firm Angel One and claimed expertise in share market trading. Parate promised investors that their money would double within two years if they invested through him.
Initially, Khambalkar invested Rs 1 lakh in August 2022, and Parate won his trust by paying regular “returns.” Encouraged by the apparent profits, Khambalkar later made larger investments. Parate told him that he had started two ventures, KY Share Market Trading and Academy at Somalwada, and KY Micro Finance Limited at Butibori, and persuaded him to invest heavily.
Between 2022 and 2023, Khambalkar invested a total of Rs 79.10 lakh, including Rs 70.10 lakh in cash and gold jewellery worth Rs 9 lakh. However, after collecting the money, Parate stopped paying returns and refused to return the principal amount, later cutting off all contact.
When Khambalkar started probing further, he discovered that more than 150 other investors, many of them professionals and retired government officials, had been cheated in a similar fashion, with the total fraud exceeding Rs 10 crore.
Following the complaint, the Butibori Police registered an offence under relevant sections of the Indian Penal Code for cheating and criminal breach of trust. Superintendent of Police Dr. Harssh Poddar said a special investigation team would be formed to trace and arrest the accused, and the case would soon be transferred to the Economic Offences Wing (EOW) for a thorough probe.
Police sources suspect that Parate may have diverted the investors’ funds into personal assets and fake trading accounts. Authorities have also begun verifying his alleged links with other brokerage agencies.
