1. The Story & The Modus Operandi

Between 2018 and 2023, Avinash Rathod and his wife Vishakha Rathod operated an investment entity named APS Wealth Ventures LLP out of Baner, Pune. They solicited investments from hundreds of individuals by promising an unsustainable return—offering a guaranteed 5% profit along with a 5% monthly principal return, effectively promising to double the investor's money in 20 months.

To build credibility, post-dated cheques and formal investment agreements were issued to investors. Once the initial returns ceased and investors demanded their principal back, complaints were filed at the Chaturshungi Police Station in April 2023. The investigation revealed that instead of deploying funds into legitimate instruments, the funds were laundered and diverted across multiple bank and demat accounts. Following the registration of the FIR, the couple fled India to the UAE.

2. Statutory Provisions & Exact Legal Grounds for Arrest

The Economic Offences Wing (EOW) of the Pune Police and the Special MPID Court proceeded against the accused based on specific statutory grounds:

A. Cheating and Dishonest Inducement — Section 420 IPC (Section 318 BNS)

The Legal Principle: Deceiving any person to fraudulently deliver property or money.

Grounds in this Case: The accused made false assurances of guaranteed 5% monthly returns knowing well that such returns were financially unsustainable and designed solely to trap depositors.

B. Criminal Breach of Trust — Sections 406 & 409 IPC (Sections 316 BNS)

The Legal Principle: Misappropriating or converting property entrusted to a person, especially in the capacity of an agent, business partner, or trustee.

Grounds in this Case: Investors entrusted funds to APS Wealth Ventures LLP under an agreement. Siphoning these funds into private bank and demat accounts constituted criminal misappropriation of entrusted assets.

C. Default by Financial Establishments — Sections 3 & 4 of the MPID Act, 1999

The Legal Principle: The Maharashtra Protection of Interest of Depositors Act penalizes financial establishments that fraudulently default on repayment of deposits or interest.

Grounds in this Case: Failing to return investor funds triggered stringent MPID provisions, enabling the state to attach properties and declare the offense non-bailable.

D. Absconding from Justice — Issuance of Warrant & Red Notice

The Legal Principle: Fleeing the country after an FIR is registered constitutes deliberate evasion of the judicial process.

Grounds in this Case: Because the accused left India during the investigation, the Special MPID Court issued non-bailable arrest warrants. The CBI (acting as NCB-New Delhi) subsequently secured an INTERPOL Red Notice on June 4, 2026, creating international grounds for detention and deportation from the UAE.

Written By: Advocate Ravi Rai Sharma (Rajasthan High Court Practitioner)Published On: August 6, 2026Publisher: LegalRavi