A massive investment scam allegedly built around a fake US defence contract is unravelling following the arrest of a Kerala businessman by the Delhi Police.

Venkitta Venkittu, a native of Kollam and chairman of VPVV Techno Construction Private Limited, was detained in Hyderabad in connection with the case.

Investigators allege that the company lured investors across six Indian states by claiming that it had secured a lucrative contract to manufacture military weapons for the US Department of Defence.

The alleged fraud was initially estimated at around ₹700 crore. However, investigators now fear that the amount involved could exceed ₹1,000 crore.

Claims used to win investors’ trust

According to the investigation, the company allegedly made a series of claims to convince potential investors.

The suspect reportedly claimed to have 34 years of experience in the industry. He is also alleged to have claimed that he played a key role in India’s Rafale fighter jet deal.

Official records, however, showed that the company’s assets were valued at less than ₹10 lakh.

Suspicion grew after a Delhi-based entrepreneur was reportedly offered a ₹500-crore subcontract for solar projects.

When he sought further details about the offer, the company allegedly failed to provide them. He then approached the authorities to verify the claims.

Both the Ministry of External Affairs and the Indian Embassy in Washington subsequently confirmed that no such defence treaty or contract existed.

Police widen investigation

Two co-directors of the company, Rahul Rajeev Nair and Hitesh Kumar, have also been arrested.

Investigators are now searching for an alleged mastermind identified only as ‘Doctor Saab’, who is accused of impersonating someone, and his associate Akhil Ahmed.

The Delhi Police have moved the accused to a secret location for questioning, while central intelligence agencies have joined the investigation.

Investigators are examining allegations that some of the money collected from investors may have been passed to anti-national elements.

The Enforcement Directorate is also tracing unaccounted money allegedly invested in the company.

The accused remain in police custody until Monday, while investigators expect more victims to come forward as the probe widens.