New Delhi: The Delhi Police on Sunday announced the arrest of Krishna Kumar Sharma, the alleged mastermind behind a sophisticated forex fraud syndicate that duped traders, professionals, and travel companies across multiple states. According to police officials, Sharma was wanted in a cheating case registered in Kolkata, where he allegedly manipulated a victim under the pretext of a forex trade deal, absconding with USD 15,000 and 1,000 Euros, valued at approximately ₹14.5 lakh.

A Highly Organised Syndicate

Deputy Commissioner of Police Harsh Indora described Sharma’s operations as highly elaborate. “Sharma operated a meticulously organised cheating syndicate that lured victims with promises of lucrative forex trades. At times, he posed as a film industry professional, projecting himself as a film producer and even arranging meetings in five-star hotels to gain the confidence of businessmen,” he said.

The syndicate reportedly included Sharma’s nephew, Mayank Sharma, along with hired associates such as bouncers and makeup artists. These accomplices helped stage convincing setups, creating the impression of high-profile entertainment deals to manipulate victims. Victims were often asked to hand over large sums of foreign currency—dollars or euros—inside hotel rooms, after which the gang would escape through alternate exits.

The operation employed multiple sophisticated techniques to evade detection. Gang members frequently changed SIM cards, travelled by air immediately after committing frauds, and carried tools such as chilli spray and chloroform to subdue potential resistance during operations.

Tracing and Arrest

An arrest warrant had been issued against Sharma by a Kolkata court on December 6, following the registered cheating case. Acting on intelligence inputs, a Delhi Police team traced Sharma to Uttam Nagar in West Delhi on the same day. Surveillance-based tracking enabled authorities to apprehend him without incident.

Sharma is also accused in a 2024 case in Delhi, in which a complainant carrying USD 25,000 was allegedly “hypnotised” after Sharma offered him water from a bottle. The cash subsequently went missing. Authorities are examining whether similar tactics were used in other instances of fraud.

A Criminal History and Shift to Fraud

According to police, Sharma has a history of involvement in multiple cheating cases in Mumbai and Delhi. The syndicate reportedly emerged after he suffered losses in his event management business during the COVID-19 pandemic, turning him toward large-scale financial frauds, particularly targeting foreign exchange transactions.

Sharma’s arrest marks a significant breakthrough in tackling pan-India financial scams, especially those employing sophisticated psychological manipulation and cross-state operations. “He is one of the key figures behind a network that exploited unsuspecting professionals and traders. His arrest will allow further investigations into accomplices and previously unsolved cases,” said DCP Indora.

Investigation Underway

Sharma has been taken into police custody, and further investigations are ongoing to determine the full extent of the syndicate’s operations. Authorities are also examining potential links between Sharma’s past cases and similar frauds in other metro cities, aiming to identify victims who may not yet have come forward.

The Delhi Police have stressed that the arrest is a cautionary message to organized crime syndicates operating in financial frauds. By combining psychological manipulation, strategic location choices, and a façade of legitimacy through high-end venues and professional appearances, Sharma’s syndicate exemplifies the complex nature of modern-day fraud operations.

Public Advisory

Authorities have urged traders and businesses to exercise caution while engaging in foreign exchange transactions, particularly with individuals offering unusually high returns or promising lucrative deals without verifiable credentials. Security experts note that fraudsters increasingly use elaborate setups and social engineering to gain the trust of victims before executing their schemes.

As investigations proceed, law enforcement agencies are working to ensure that all victims of Sharma’s syndicate across India are identified and their complaints registered. The case underscores the importance of vigilance and regulatory oversight in preventing financial crimes that exploit trust and the promise of quick profits.

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