Talamadugu police in Adilabad district have arrested Raj Kumar Roy alias Raj Kumar Kailash Rai, 69, managing director of Unique Mercantile India Limited, Ahmedabad, in connection with an alleged investment fraud involving hundreds of crores of rupees across Telangana, police said.

Addressing the media in Adilabad on Wednesday evening, Superintendent of Police Akhil Mahajan said the accused allegedly collected money from the public by promising attractive investment schemes, chit fund benefits and high returns.

“Chandrasekhar, zonal manager of the Unique SMCS in Hyderabad, and the second accused, is absconding,” the SP said.

Preliminary investigation suggests that around 10,000 people across the country may have been affected. In Adilabad, transactions involving about 2,000 members are between ₹ 7 crore and ₹8 crore.

Cases have been registered at Adilabad One-Town, Mavala, Adilabad Rural and Talamadugu police stations.

Investigators suspect that the money collected from investors was used to purchase hotels, land and plots in Telangana and other States.

Further investigation is underway into the alleged transactions, including the purchase of around 400 plots in Miyapur and about 200 acres of land near AIIMS Bibinagar.