Hyderabad: The Cyberabad police have launched an investigation into Falcon Invoice Discounting and 18 key individuals, including Managing Director Amardeep Kumar and other executives, following allegations of fraud and breach of trust.

The Hyderabad-based firm, which also claims to have offices in the U.S. and UAE, abruptly shut down its office and operations in Hyderabad on February 10, leaving numerous investors across India in financial distress.

Top officials of the company are absconding

According to the Economic Offences Wing (EOW) of the Cyberabad police that is investigating this case, the management and directors of the company have gone into hiding after closing the firm’s office in Hi-Tech City.

So far, three criminal cases have been filed against the company’s management, with investors alleging substantial losses due to delayed payments since early January 2025. The Company MD hails from Bihar, but is residing in Hyderabad and so are the other key persons, stated the police.

Investors nationwide, including from Telangana, Andhra Pradesh, Maharashtra, Gujarat, Tamil Nadu, Karnataka, Rajasthan, and New Delhi, have started organizing on social media and WhatsApp groups to seek justice. Several investors have lodged complaints with the Cyberabad police, with some claiming losses of up to Rs 5 crore.

What was the investment scam?

D Kapoor (name changed), an investor from Delhi, revealed that he had been investing in the company for the past four years. “Only from January, the company started delaying payments in my case,” Kapoor stated.

Explaining the investment model, he mentioned that the company would list an invoice from a reputed firm worth Rs 2 crore and invite investors to contribute amounts between Rs 2 lakh and Rs 9 lakh.

The promised returns, with an interest rate of up to 21%, were expected within 180 days. The company also conducted eKYC and bank verifications before finalizing investment agreements, he said.

Police state that some investors reportedly borrowed heavily using credit cards, hoping to repay within the 45-day grace period by leveraging the high returns offered by the firm. Investments had locking periods ranging from 15 days to six months, with higher interest rates for longer durations.

The Cyberabad police continue to investigate the scam, urging affected investors to come forward and lodge complaints. Meanwhile, efforts are being made to trace the absconding management and recover investors’ funds.

Meanwhile, the AP police stated that they have not received any complaints from any affected investor in Andhra Pradesh state the Falcon case.

Falcon’s business model and promises

Falcon Invoice Discounting positioned itself as a web-based platform and also as a mobile app designed to provide businesses with cash advances against invoices.

The company, which started its operations in 2015, claimed to offer (flexible investment-thorough verification of invoices to minimize risk, high returns: promised yields of up to 22% with minimal risk exposure, short-term returns: Investors assured returns within 30-180 days and minimal risk: investors could choose partial or full investment options)

The company, operating under the trade name Capital Protection Force Pvt. Ltd., claimed to be a technology-driven platform aimed at resolving businesses’ working capital challenges. However, with the recent turn of events, investors are now facing uncertainty and financial turmoil.