The investment fraud carried out by the VPVV company using a fake contract to manufacture weapons in India for the US Department of Defence is likely to exceed ₹1,000 crore, with central intelligence agencies now joining the investigation into the case.

The agencies have begun probing allegations that the accused handed over the money collected through the fraud to anti-national elements.

The Delhi Police have so far arrested three people in connection with the scam. Venkitta Venkittu, a resident of Curzon Road in Kollam, was taken into custody from Hyderabad four days ago, while the company’s directors, Delhi native Hitesh Kumar and Rahul Rajeev Nair of Koothattukulam in Ernakulam, were arrested by the Delhi Police Special Squad in the capital.

The actual scale of the fraud came to light after the Delhi Police completed its preliminary investigation. The scam, initially estimated at ₹700 crore, is now believed to have crossed the ₹1,000-crore mark.

The Delhi Police investigation is focusing on the alleged mastermind, an impersonator known as ‘Doctor Saab’, and his associate Akhil Ahmed. Doctor Saab is currently on the run.

Investigators have also been unable to ascertain where the money allegedly withdrawn as cash from bank accounts was concealed. The involvement of central intelligence agencies comes amid efforts to trace the missing money and establish its possible links.

Those arrested by the Delhi Police have been shifted from the District Investigation Unit (DIU) in RK Puram to a secret location for questioning. The accused, including prime accused Venkittu, were remanded in police custody until Monday and have been questioned there.

Network in 6 states
The group allegedly targeted investors not only in Kerala but also in Telangana, Andhra Pradesh, Tamil Nadu, Madhya Pradesh and Maharashtra. The actual extent of the fraud in these states is expected to become clear only if more victims come forward and file complaints.

Investigators have found that several people who invested money earned through illegal means in the company have so far been reluctant to approach the authorities.

The Enforcement Directorate (ED) has also collected information following inputs that unaccounted money was invested in the company.