The Hindu : New Delhi News : One nabbed for online fraud

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Wednesday, Aug 09, 2006

New Delhi

New Delhi

One nabbed for online fraud

Staff Reporter

Accused allegedly received payment of Rs. 60 lakhs, but did not deliver the goods

NEW DELHI: One person has been arrested by the Economic Offences Wing (EOW) of the Delhi police for allegedly duping a man of Rs. 60 lakhs in an online business transaction.

Sudhir Bajaj of Bajaj Exports, Panipat, Haryana, had lodged a complaint with the EOW in May against Rakesh Singh, managing director of Boom Buying Private Limited, Greater Kailash, of duping him of Rs. 60 lakhs by promising to deliver 500 metric tons of fine sugar for export. Following investigations, Rakesh was arrested on Friday last week when he came to his office to access his e-mails in the night.

Investigations revealed that, in February, Mr. Bajaj had entered into an agreement with a company in the United Arab Emirates for supplying 37,500 metric tons of fine quality sugar to Pakistan.

The complainant searched on the Internet for companies procuring sugar from mills in Uttar Pradesh and selling them to export companies. One such company was Boom Buying that claimed to have excellent government contacts.

Mr. Bajaj contacted the accused through the company's website and, following a series of e-mails, they finalised the agreement through an online pact in March to supply 37,500 metric tons sugar.

Subsequently, Rakesh put a condition of releasing 500 metric tons of sugar only after the complainant paid the entire amount in advance. When Mr. Bajaj agreed, the accused sent him a bill of over Rs. 80 lakhs claiming that sugar consignment would reach Mumbai port within a week of payment.

Mr. Bajaj made an online payment of Rs. 60 lakhs while promising to pay the rest after the delivery of the consignment. The accused accepted the payment and, as it later turned out, transferred the amount to his personal account.

He then went underground and no sugar consignment ever reached the Mumbai port, the police said.

The police said Rakesh, an engineer from BIT (Mesra), had opened a carry and forward company a year ago that had run into losses.

He then floated a multi-level marketing venture to recoup losses. Further investigations are on.

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