In India, US$100 million Ponzi scheme linked to Amazon leaves thousands in financial ruin

The scheme promised high returns by claiming to connect investors with major brands like Amazon and Britannia

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Falcon Invoice Discounting promised high returns but used new investors’ money to pay older ones, leaving thousands facing financial ruin. Photo: Shutterstock

Published: 4:28pm, 18 Feb 2025Updated: 8:21am, 19 Feb 2025

Thousands of investors in India are scrambling to recoup nearly US$100 million after they were caught in a Ponzi scheme that duped them into making short-term investments promising high returns, according to a police statement and multiple victims.

Indian police arrested two individuals on Saturday after a case was filed against Falcon Invoice Discounting, which promised returns of up to 22 per cent by claiming to connect depositors with the likes of Amazon and biscuit maker Britannia.

Falcon collected 17 billion rupees (US$196 million) from nearly 7,000 investors since 2021 but has repaid only half, according to a statement from police in the southern state of Telangana.

Ankit Bihani, a New Delhi-based jeweller, met with 50 other investors last week to discuss measures, including legal remedies, to recoup the collective 500 million rupees they said they had lost.

“Most of them [investors] got to know about the investing platform through social media and invested in it,” Bihani said.

Falcon Invoice Discounting, which claimed to connect depositors with Amazon, has left investors scrambling to recoup their losses. Photo: AFP

Falcon used the money from new investors to pay out older ones and diverted the remaining funds to various shell entities, the police said. Authorities are hunting for Amardeep Kumar, Falcon’s founder and the main accused, a source said.