Raipur Police have arrested seven alleged members of a fraud syndicate accused of cheating people by promising to double their money and convert bundles of black paper into genuine currency using chemicals. The arrests were made at a resort in Pune during an investigation into a ₹1.13 crore cheating case involving a businessman from Balod, Chhattisgarh.

According to police, two women were arrested earlier in connection with the Balod case. Their interrogation reportedly provided digital leads, including mobile chats, contact numbers and social media accounts, which helped investigators trace the alleged masterminds to Pune. Police then kept the suspects under surveillance for nearly a week before raiding a resort in Khandala. The accused were allegedly attempting to convince another person from Varanasi to hand over money as part of the same fraud.

Police identified the arrested suspects as Gyan Prakash Srivastava alias Yogi, Praveen Kumar Srivastava alias Captain, Shetty and Reddy, Manoj Kumar Srivastava alias Bade Sir, Vivek Singh, Shubham Pandey, Yogendra Chauhan and Balmukund Dixit. The investigation has also indicated that the alleged syndicate had been operating since around 2005 and may have targeted more than 100 people across different cities. Police said some members of the network are still absconding.

The alleged fraud was based on what is commonly known as a “wash-wash” or black currency scam. Investigators said the suspects used black paper cut to the size of currency notes along with chemicals and staged demonstrations to convince potential victims that blackened notes could be converted into genuine currency. In some cases, genuine currency was reportedly used during demonstrations to establish credibility.

The suspects allegedly approached prospective victims at clubs, parties, yoga centres and high-profile gatherings, where they built contacts with financially well-off people. They reportedly presented themselves as members of influential business networks and claimed links with the Reserve Bank of India, senior officials and other powerful individuals. Police said the accused also used photographs with politicians and film personalities and sometimes appeared with private security personnel to create an impression of influence.

Meetings were allegedly arranged at expensive hotels, villas and resorts in cities including Delhi, Mumbai, Kolkata, Hyderabad, Rajasthan and Gujarat. During these meetings, victims were reportedly promised access to foreign investment, influential contacts or schemes that could multiply their money. Once trust was established, the accused allegedly demanded money in instalments under different pretexts, including chemicals, testing, security clearances and fund-release procedures.

Police said the gang had a specific method for gaining the confidence of victims. In the initial stage, victims were allegedly given genuine currency and shown a demonstration involving chemical treatment. After the victim became convinced, the accused would allegedly replace genuine notes with bundles of black paper made to resemble currency. The victim was then persuaded to invest a much larger amount, after which the suspects would disappear or demand additional money.

More than ₹4 crore in cash, 17 mobile phones, black paper cut into currency-note sizes, glass plates and other materials were reportedly seized during the investigation. Police said the accused have admitted to similar offences in Chhattisgarh, Noida, Pune, Vadodara, Udaipur and Delhi. Praveen Kumar Srivastava and Manoj Kumar Srivastava have also reportedly faced previous cheating cases in Mumbai and Varanasi.

The investigation has revealed another unusual aspect of the alleged operation. Police said some of the accused had themselves fallen victim to a similar scam before 2005. After losing money, they allegedly learned the method and subsequently built their own network to target others.

The case came to light after Balod businessman Umesh Kumar Sinha allegedly lost ₹1.13 crore after being promised ₹45 crore in investment for expansion of his company. The investigation into that complaint eventually led police to the wider alleged syndicate. Further investigation is underway to identify additional victims, trace the money trail and locate other suspects.