Another Twist In Falcon Invoice Discounting Saga: Crores Lost, Office Closed, Arrest Made - Mastermind Still at Large

In a major breakthrough in the multi-crore Falcon Invoice Discounting scam, the Telangana Crime Investigation Department (CID) has arrested Aryan Singh, the Chief Operating Officer (COO) of Capital Protection Force Private Limited—better known as “Falcon Invoice Discounting.”

Singh’s arrest marks a critical development in the Rs 4,215 crore scheme that has left more than 7,000 investors across India in financial ruin. His anticipatory bail plea was dismissed by the Telangana High Court, citing “serious and specific allegations” and a strong prima facie case of financial misconduct. Following the dismissal, CID traced and arrested Singh in Punjab.

What Was Falcon Invoice Discounting, and Why Did It Appear So Convincing?
At first glance, Falcon appeared to be a legitimate fintech opportunity. Since 2015, it operated a platform claiming to help businesses raise working capital through invoice discounting. This is a genuine financial service, where companies sell unpaid invoices to third-party financiers at a discounted rate to get immediate liquidity.

Falcon claimed it needed investor capital to fund these transactions and offered high returns—up to 21.95%—across different plans: 45-day, 90-day, and 180-day tenures. On paper, it looked like a win-win. Businesses got early payments, and investors earned steady interest.

Its now-defunct website, www.falconsgrup.com, boasted partnerships with trusted brands like Amazon, Flipkart, Adidas, and Godrej. These brand associations gave investors added confidence, even though none of these companies had any affiliation with Falcon.

Agreements were signed, funds were transferred to Falcon’s ICICI Bank escrow account, and returns were credited regularly. That is, until January 2025.

When the Money Stopped Coming
By mid-January 2025, investors began noticing red flags, interest payments had stopped, customer service numbers went unanswered, and Falcon’s Hyderabad office was shut down.
One group of complainants had collectively deposited over Rs 9.38 crore under the scheme. These weren’t just casual investments; some had parked their life savings and retirement funds. The illusion of security created through documents, polished digital platforms, and name-dropping trusted brands worked remarkably well.

Panic set in, and soon a flurry of police complaints followed. The Economic Offences Wing (EOW) of Cyberabad Police began registering cases under various sections of the Bharatiya Nyaya Sanhita (BNS) and the Telangana State Protection of Depositors of Financial Establishments Act (TSPDFEA).
 

Aryan Singh’s Defence: Victim or Villain?
Aryan Singh, the arrested COO, maintained that he was merely a consultant, not an executive with operational control. He also claimed he had invested between Rs 1.35 crore and ₹2.95 crore in the company—asserting that he was a victim rather than an accused.

But the court found major discrepancies in his claims. Documents submitted by the CID showed Singh was officially listed as Falcon’s Chief Operating Officer in company filings and strategic investment documents. His own website described him as COO. Furthermore, over Rs 3.5 crore was found to have been routed from Falcon to Singh’s accounts, not the other way around.

The court concluded that Singh had played a central role in Falcon’s financial operations, including strategic planning, budgeting, policy decisions, and investor management. He was also identified as an authorized signatory in key documents. Singh’s claim of being a consultant drawing Rs 65,000 per month didn’t match the financial records.

The court observed: “Petitioner is the COO of Falcon and played a key role in its day-to-day affairs, including financial operations. He collected Rs 14.35 crore from 17 victims and received backdoor payments from Falcon, making him an active participant in the crime.”

“He Was In On It Since 2017”: Victims' Counsel Speaks Out
Advocate Kathyaeni Ramshetty, representing several victims, told Republic Business: “The CEO is Yogendra Singh and COO is Aryan Singh. Aryan had been working with Amardeep Singh (the main accused) since 2017. He initially tried to present himself as a victim, but financial records show a clear money trail involving his accounts.”

She added that CID filed a 300-page counter that included detailed bank statements showing how funds from investors went into Falcon—and from Falcon into Aryan’s accounts.
“Aryan even tried to argue that Rs 55 lakh linked to him was meant for Amardeep’s minor son, also named Aryan. That argument didn’t stand up in court,” she said.

Who Else Is Involved? And Where Are the Masterminds?
The Falcon case is not limited to one or two people. The CID has named 24 key accused, with Amardeep Kumar (Director) and his brother Sandeep Kumar at the core of the operation. Both are currently absconding.

Falcon is also being investigated for violations of multiple laws, including:
Factoring Regulation Act, 2011
Payment and Settlement Systems Act, 2017
Income Tax Act and GST Act

Adding to the complexity, Falcon is reportedly linked to 14 shell companies in India and 4 abroad, which were allegedly used to launder investor funds.

On May 17, 2025, CID arrested Rabindra Prasad Singh (63)—father of Amardeep and Sandeep—and Sushma Raj (31)—Sandeep’s wife—in Bihar. They have been brought to Hyderabad on transit remand. Other arrests include Ravi Kumar Singh (a close aide), and Sandeep Kumar himself.

But Amardeep Kumar, the alleged mastermind, remains missing.

High Court’s Firm Stand: “Custodial Interrogation Necessary”
The Telangana High Court, in its detailed 29-page order, denied Aryan Singh’s bail and made it clear that: “There are specific and serious allegations that he and other accused misappropriated investor funds.”

The court emphasized that custodial interrogation is critical for tracing the money trail, preventing tampering of evidence, and securing the cooperation of co-accused.

The Bigger Picture: Scale of the Fraud
Total investor deposits collected: Rs 4,215 crore
Total number of investors: Over 7,560Funds diverted to shell companies: Rs 792 crore
Victims officially traced so far: 4,065

The fraud thrived on slick branding, digital sophistication, and fabricated claims. Victims included salaried professionals, retirees, and small business owners. Many were convinced by the fake corporate tie-ups and the polished user experience of the Falcon app and website.

What Happens Now?
The CID continues its investigation, focusing on identifying the fund flow, freezing assets, and bringing absconding accused to justice. Aryan Singh’s arrest is expected to yield crucial insights into where the money went and who else was involved.

So far, no major recovery of investor money has been reported. The victims—many financially devastated—continue to press for justice.
This case has also exposed serious regulatory loopholes. Falcon operated outside the RBI’s direct supervision, highlighting the urgent need for stricter checks on non-bank financial platforms.
 

Read More - Falcon Invoice Discounting Latest News: A Family Affair Behind Rs 4,215 Crore Scam?

The Falcon Invoice Discounting scam is a sobering example of how sophisticated financial frauds can be hidden in plain sight. What began as a seemingly safe, high-return investment ended with over Rs 4,000 crore missing and thousands of lives upended.

With more arrests expected and the CID digging deeper, one thing is clear: the path to justice will be long, but the lessons are immediate. Investors must ask the tough questions, regulators must tighten oversight, and no return should ever seem too good to be true.