Mangaluru: A massive financial scam has come to light in coastal Karnataka, where two men are accused of orchestrating fraudulent deposit schemes that lured more than 13,000 people with promises of jackpots and refunds, only to vanish with their money.

The duo, Mohammed Ashraf (43) and Mohammed Hanif (50), floated New India Royal Scheme and Green Light Lucky Scheme, offering monthly draws with prizes such as cars, bikes, plots, gold rings, and cash. Members contributed ₹1,000 a month for a year, expecting both winnings and a refund of their deposits.

Instead, after amassing over ₹100 crore, the accused shut their Katipalla office overnight, triggering panic among investors. Police registered a case under the new Bharatiya Nyaya Sanhita (BNS) and the Banning of Unregulated Deposits Schemes Act.

Ashraf and Hanif were arrested on August 12, remanded to police custody, and later sent to judicial custody. Investigators have seized multiple bank accounts, gold, land parcels, houses, vehicles, and office records linked to the fraudulent schemes.

“This is a classic case of unregulated deposit fraud targeting the middle class with promises of instant wealth,” a senior officer said, adding that authorities are tracking earlier similar schemes floated by the duo. Victims have been urged to submit statements and documents to the police for compensation proceedings.