Crypto Scam Ignites Legal Battle in Bombay HC
• Investor Seeks Justice as Cops Stall Probe
• FVP Trade Fraud: Petitioner Demands Swift Action
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
A major crypto scam involving blacklisted FVP Trade has reached the Bombay High Court after police failed to act on an FIR for over 12 months. Petitioner Rajesh Khanna seeks directions to transfer the investigation to an independent agency and demands a response from the Commissioner of Police for inaction against the accused and their fraudulent modus operandi.
A crypto investment scam involving blacklisted FVP Trade has reached the Bombay High Court after police failed to act for over 12 months despite an FIR. Represented by Advocate Nikhil Seth, petitioner Rajesh Khanna seeks an independent probe. Sprouts News Investigation Team (SIT) exposes systemic police inaction and regulatory lapses.
Sprouts News Investigation Team (SIT) uncovers police negligence, systemic delays, and regulatory lapses in a high-profile cryptocurrency fraud case. The Bombay High Court petition seeks an independent probe into the FVP Trade scam.
FVP Trade Crypto Scam Lands in Bombay High Court
A serious cryptocurrency scam involving blacklisted entity FVP Trade and its fugitive director Ashok Sharma has escalated into a full-blown legal battle in the Bombay High Court. The petitioner, businessman Rajesh Khanna, has alleged that despite filing an FIR and repeated complaints, Mumbai Police have failed to take meaningful action for over 12 months.
The case centers around an organized investment fraud promising high crypto returns, operated by FVP Trade and key associates, including Sharma’s wife Sulekha Sharma, their daughter Neha Sharma, and several others. The petitioner has demanded that the investigation be transferred to an independent agency due to “prima facie bias” and deliberate inaction.
Advocate Nikhil Seth is representing Khanna in the writ petition, which alleges police negligence and gross mishandling under the Maharashtra Protection of Interest of Depositors (MPID) Act.
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Modus Operandi: Blacklisted FVP Trade Used Shell Accounts to Lure Investors
In 2022, Rajesh Khanna was introduced to FVP Trade by a friend and persuaded to invest in cryptocurrency schemes that promised 10–15% monthly returns. He attended Zoom calls and WhatsApp interactions with key company operatives, including Ratnasree Akpatri, Naveed (All-India head), and Ashok Sharma (director).
Khanna transferred funds to DBS bank accounts. However, shortly after the funds were transferred, the company’s digital operations disappeared, and Khanna learned that FVP Trade was already blacklisted by the Reserve Bank of India (RBI).
Bank statements annexed in the petition show direct transactions involving Neha Sharma, Abhishek Sharma, Chandrakala Kurapati, and Naveen Tak, co-founder of the SOG Social Foundation—yet none of these individuals were investigated or even summoned by police.
FIR Filed, Yet No Action Under MPID Act; Look-Out Notice Mishandled
An FIR was registered at Charkop Police Station on June 9, 2024, under IPC Sections 406, 409, 420, 34, and Sections 3 & 4 of the MPID Act. But the petition claims police have limited their probe to Ashok and Sulekha Sharma, leaving other co-accused untouched.
Shockingly, a Look-Out Circular (LOC) was issued citing the MOFA Act instead of the applicable MPID Act—a blunder that raises serious questions about police competence. Khanna claims this reflects “gross negligence and lack of seriousness” in investigating a major financial crime.
Despite being legally required to attach properties acquired through fraudulent means, police have not initiated any such proceedings. Instead, the case was inexplicably transferred to Malad Police Station, where it continues to languish without progress.
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Related Article: Over 15k Investors Defrauded of ₹500 Crore: Key Accused Absconding.
Related Article: ₹500 Crore Crypto Scam: Wanted Accused Ashok Sharma free for 9 Months.
SIT Probe Sought Amid Mounting Evidence and Regulatory Neglect
Rajesh Khanna’s plea now urges the Bombay High Court to assign the investigation to either the Crime Branch or an independent agency to ensure a fair and impartial probe. He has also called for:
• Immediate registration of fresh FIRs against the remaining accused.
• Attachment of assets under MPID provisions.
• Disciplinary action against officers who mishandled the case.
Supporting the case, the Sprouts News Investigation Team (SIT) verified that the SOG Social Foundation, linked to co-accused Naveen Tak, is under the scanner in similar financial fraud cases across Maharashtra.
Legal experts consulted by Sprouts SIT believe this could become a landmark crypto fraud case, especially if the court addresses how banned platforms continue to operate under new identities with little to no enforcement action.
Systemic Failure, Investor Trauma: India’s Crypto Regulation Questioned
This case reflects deeper cracks in India’s response to rising crypto frauds and unregulated digital investment platforms. Despite clear evidence—including bank transaction trails and RBI warnings—enforcement remains tepid. “This is a textbook case of how scam networks reinvent themselves and exploit legal blind spots,” said a financial analyst speaking to Sprouts News SIT.
Khanna’s case echoes the plight of hundreds of small and mid-level investors who fall prey to such digital Ponzi schemes. The High Court’s decision could set a critical precedent on the responsibility of police and regulators in the era of decentralized digital finance.
As of now, all accused remain at large, reportedly operating under different names and platforms, continuing to defraud unsuspecting investors.
Final Plea: Independent Probe and Police Accountability Sought
The petition also seeks directions to transfer the investigation to an independent agency and a response from the Commissioner of Police regarding inaction on the FIR filed against the accused and their modus operandi.
