Arrest of Falcon Group CEO in INR 4,215 crore invoice discounting fraud

In a significant development in one of the largest financial frauds uncovered in recent times, the Telangana Crime Investigation Department (CID) has arrested Mr. Yogendra Singh, the Chief Executive Officer of Falcon Group, for his alleged central role in orchestrating a sophisticated and large-scale financial scam valued at approximately INR 4,215 crore (US$494m).

The Modus Operandi
The fraudulent scheme was operated through a front company, Capital Protection Force Pvt. Ltd., which conducted business under the guise of “Falcon Invoice Discounting.” This fictitious digital platform purported to offer lucrative investment opportunities in invoice discounting — a legitimate financial service — by showcasing forged documentation and fake business deals with reputed multinational corporations.
Through deceptive claims and fabricated transactions, the perpetrators succeeded in drawing the attention and trust of a wide investor base. As per the CID investigation, more than 7,000 individuals were enticed into investing their savings. Among them, at least 4,065 depositors were found to have suffered losses amounting to approximately INR 792 crore (US$93.2m).

Legal Proceedings and Investigative Transfer
Following the emergence of the fraud, three First Information Reports (FIRs) were filed citing violations under the Bharatiya Nyaya Sanhita (BNS) — specifically Sections 316(2), 318(4), and 61(2) — in addition to provisions under Section 5 of the Telangana State Protection of Depositors of Financial Establishments (TSPDEF) Act, 1999.
The case was initially taken up by the Cyberabad Economic Offences Wing (EOW). However, in view of its complexity and scale, jurisdiction was subsequently transferred to the CID for a more detailed and resource-intensive investigation.

Evasion and Apprehension
Mr. Yogendra Singh, aged 38 and a resident of Machabollaram, Secunderabad, had been absconding since February 2025, shortly after the registration of the case. Upon his return to Hyderabad, he was apprehended by CID authorities and produced before the competent magistrate for remand.
Further investigations have revealed that Mr. Singh acted in concert with Mr. Amardeep Kumar, Managing Director of Falcon Group, as well as Mr. Sandeep Kumar, Amardeep’s brother. Together, they implemented a coordinated digital marketing strategy to target prospective investors, leveraging platforms such as Google, YouTube, Instagram, and an extensive network of tele-callers to project the false credibility of the scheme.

Cross-Border Connections and Continued Inquiry
In the aftermath of the scam’s exposure, Mr. Singh and Mr. Sandeep Kumar reportedly fled to Dubai. During this period, Mr. Singh assumed the role of CEO at Virgio Real Estate Pvt. Ltd., another company reportedly promoted by Mr. Amardeep Kumar. This maneuver suggests an attempt to re-establish operations under a new corporate entity while evading Indian law enforcement.
The CID has confirmed that the investigation is ongoing, with efforts underway to trace and apprehend remaining co-accused individuals and further examine the flow of illicit funds, digital evidence, and the extent of investor losses.