Nagpur, Nov 20 (PTI) An offence has been registered against two brothers for allegedly floating a ponzi scheme and cheating investors to the tune of Rs 20 lakh in Maharashtra's Nagpur district, police said on Sunday.

Based on a complaint lodged by an investor, the police on Saturday registered a case under section 420 (cheating) and other relevant provisions of the Indian Penal Code and Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, an official said.

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The accused allegedly floated two ponzi schemes — Aryan Pratidin Fund and Aryan Reserve Fund — in January 2016, and lured investors with promise of high returns, he said.

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The accused collected Rs 20 lakh from investors and defrauded them, the official said, adding that further probe is underway.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)