CBI takes over Rs 15,000 crore Bike Bot scam, lodges FIR against promoter

CBI takes over Rs 15,000 crore Bike Bot scam, lodges FIR against promoter

The CBI has filed a FIR against an Uttar Pradesh-based firm and its executives in connection with the Rs 15,000 crore Bike Bot scam on the request of State Government.

The Central Bureau of Investigation (CBI) has filed a FIR to investigate the Rs 15,000 crore Bike Bot scandal, which is larger than the Punjab National Bank fraud involving diamond traders Nirav Modi and Mehul Choksi.

According to the FIR, Sanjay Bhati, the Chief Managing Director of Uttar Pradesh-based Bike Bot, and 14 others defrauded over 200000 investors throughout the country of around Rs 15,000 crore.

The accused in the alleged Bike Bot fraud allegedly floated highly lucrative investment ideas under the pretext of a bike-taxi service called Bike Bot, in which a consumer could invest in one, three, five, or seven bikes, which the firm would maintain and manage. In a binary structure, the investor would be paid monthly rent, EMI, and bonus (in the case of multiple bike investments), as well as further incentives for acquiring new investors.

Franchisees were purportedly assigned to the company in several locations, although the motorcycles and cabs were rarely seen in these areas.

The intentions were announced in August 2017, and money was collected from investors and clients, as well as repayments, until early 2019. In November 2018, the firm announced identical plans for e-bikes, claiming that petrol bikes had registration and operation concerns. The cost of an e-bike subscription was nearly twice as much as the cost of a standard fuel cycle.

“It is also stated that the corporation advertised that “BIKE BOT – THE BIKE TAXI POWERED BY GIPL scheme will be enclosed very soon and that person willing of availing scheme must deposit money urgently” in order to take money from investors with a nefarious motive. Approximately 2,00,000 investors put money into the company after seeing such an advertisement; yet, the truth remains that complaints were filed and the company’s fraudulent behaviour was known to the Noida district administration and police officials, who did nothing. The SSP and SP crime branch, on the other hand, pressured the complainants to retract their charges,” according to the CBI FIR.

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