Mumbai: The Anti-Extortion Cell of the Crime Branch has made a fourth arrest in connection with a Rs 400 crore Ponzi scheme.

Maheshwari Udaiyar, 42, was arrested on Monday from Mahim Railway Station and presented before a court. The court sent her to seven-day police custody, an official said.

Earlier the Crime Branch had arrested three people for their involvement in the scheme: Ashish Shah, the main accused, Manikkam Udaiyar, 40, and Madhayan Udaiyar, 36.

Shah allegedly posed as a Securities and Exchange Board of India (SEBI) agent, convincing people to invest in the stock market and various bogus schemes, promising high returns, according to officials.

Manikkam and Madhayan assisted Shah by posing as agents and defrauding multiple victims, the officials said.

The investigation revealed that Manikkam and Madhayan used the money from victims to purchase flats and shops. The police seized two cars, a Toyota Fortuner and an MG Hector, from them. Previously, cars, motorcycles, gold, cash and mobile phones worth Rs9 crore were seized from Shah.

Shah operated mainly in Mumbai and Mira Bhayander, targeting investors from south India. He took the money, claiming to invest it in the stock market, but neither invested it nor returned the principal amounts.

One of the victims, Jaipal Kodar, a transport businessman from Andheri (West), lost Rs1.70 crore. He, along with others who collectively lost Rs9.63 crore, filed a case with the Versova police on July 11.