Falcon Invoice Discounting Scam: Promised 20% Returns, Left 7,000 In Ruins - Check Latest Updates

The investigation into one of India’s most alarming financial frauds—the Falcon Invoice Discounting Scam—has reached a key milestone with the arrest of the fourth accused, Yogendra Singh, CEO of the app-based Ponzi scheme. Conducted by the Crime Investigation Department (CID), Telangana, this action marks a significant step forward in unravelling the fraud that duped over 7,000 investors across the country.

The scam, which surfaced earlier this year, involved luring victims through a sophisticated digital platform that promised high returns through fake invoice discounting deals in the name of reputed multinational corporations (MNCs). The total amount collected was estimated at Rs 4,215 crore, with Rs 792 crore in unpaid liabilities as per initial calculations.

Who is Yogendra Singh? 
CID Telangana, in an official statement issued on May 6, 2025, confirmed the arrest of Yogendra Singh, age 38, a key accused who had been absconding since February. Singh is said to be the chief executive of Capital Protection Force Pvt. Ltd., the entity behind the whole Falcon scam.

He was responsible for orchestrating the digital marketing campaigns on YouTube, Instagram, and Google, and for leading a team of telecallers to convince people to invest in the fake scheme.

According to the official statement by CID: “The accused developed the Falcon Invoice Discounting Application, advertised it heavily on social platforms, and created fake deals under MNC names to lure innocent depositors. Singh coordinated operations with other prime accused, including Amardeep Kumar, and diverted funds into offshore ventures.”

Singh fled to Dubai before the registration of criminal complaints and was reportedly named CEO of Virgio Real Estate Pvt. Ltd., another company floated by the scam's alleged mastermind, Amardeep Kumar. He returned to Hyderabad recently and was arrested following a tip-off, as per media reports. 

What is the Falcon Scam?
The Falcon scam was initially disguised as a fintech-driven invoice discounting model. Small and medium business owners were shown fake documentation, promising returns of 15–20% on short-term investments. Initially Republic Business reported the scam valued at Rs 850 crore but now some source say the scam is much more than that. 

Singh was not just a face; he was hands-on with investor acquisition. The platform was well-maintained, the receipts and invoices were meticulously generated, and investor confidence was built through staged success stories and fake MNC tie-ups.
 

Timeline: From EOW to CID, Case Transfers and Arrests
Initially, the case was handled by the EOW Cyberabad, which registered three FIRs—Cr.No.10, 11, and 12 of 2025 under sections 316(2), 318(4), 61(2) of BNS and Section 5 of TSPDEF Act, 1999. However, given the national spread of complaints, jurisdiction was transferred to the CID Telangana on March 13, 2025.

Speaking to Republic Business, Advocate Kathyaeni, who represents multiple victims, explained: “The EOW Cyberabad had jurisdiction limitations. When they realised this was a pan-India scam, the case was handed over to CID. Since then, three arrests were made—Kavya Nalluri (A3), Pawan Odela (A7), and Narasimha, the app developer. Yogendra Singh is now the fourth arrest.”

CID confirmed that Singh has been remanded to judicial custody and that efforts are ongoing to arrest other absconding accused.

The App Developer's Role: Technical Expertise Under Scrutiny
Victims earlier expressed doubts about the arrest of Narasimha, the app developer, suggesting he may have only performed a commissioned job.

However, Advocate Kathyaeni clarified: “He wasn’t just the developer. He was actively involved in backend operations—generating receipts, changing payment settings, managing dashboards. Whether he knew the larger fraud is for the investigation to establish, but his operational involvement is significant.”

She added: “Unless all three arrested persons are interrogated together, we won’t know the full chain of command.”

Aryan Singh and Amardeep Kumar: The Elusive Masterminds
Despite four arrests, victims say the two most important players—Amardeep Kumar (MD) and Aryan Singh (COO)—are yet to be taken into custody.

“Aryan Singh is walking free in Hyderabad and even filing anticipatory bail in court,” said a victim to Republic Business. “He was Amardeep’s right-hand man and handled all India operations.”

The victim further noted that Amardeep is believed to be in Dubai and has established several shell companies.

Read More 
Inside The Falcon Invoice Discounting Scam: Secret Talks, Missing Crores & The Hunt for Justice
 

Victim Voices and Legal Pushback
In the absence of full-scale recovery, victims have come together to employ Advocate Kathyaeni, previously assisting them pro bono. “We’re pooling money to pay her a monthly retainer,” said one victim. “She appears in every court matter and ensures our voice is heard.”

The advocate has been instrumental in filing bail oppositions and seeking transparency in court proceedings.

The Financial Scale: From Rs 792 Cr to Rs 4,215 Cr and Beyond
According to CID estimates, while the scam collected Rs 4,215 crore, the confirmed liability is Rs 792 crore. However, victims and sources suggest the actual scope may be as high as Rs 20,000 crore, including multiple linked platforms like WoTrade and InvoiceTrade.

“This is a group effort, not a one-off scam,” said a source. “It involves several shell companies and is deeply networked.”

Public Advisory and Next Steps
The CID has urged citizens not to fall for high-return schemes online and advised caution in investing without due diligence.

The CID also confirmed that more arrests are likely, and forensic tracing of assets is underway.

The Falcon scam, while complex, is gradually being unraveled by the CID Telangana. With four key arrests, judicial scrutiny, and active victim advocacy, the investigation is gathering momentum. The road ahead remains challenging, but the focus is clear—justice for over 7,000 victims and accountability for those responsible.