Bike Bot scam: When 2 lakh investors lost Rs 15,000 crore

The company had promised returns of Rs 1.17 lakh per annum.

In 2021, the country was rocked by a Rs 15,000 crore 'Bike Bot' scam. It came to light when the Central Bureau of Investigations (CBI) began its probe into the Noida-based bike taxi business.

According to the CBI, Sanjay Bhati was the mastermind behind the scam. Bhati, along with his wife, is said to have defrauded over 2 lakh investors. Here's how an attractive investment scheme turned into a nightmare for some.

In August 2010, Sanjay Bhati set up a real estate company by the name of Garvit Innovative Promoters Limited (GIPL). Through this firm, the couple launched 'Bike Bot' – a bike taxi business.

The scheme was simple, and seemed lucrative, offering a return of Rs 1.17 lakh per annum. An investor would pay Rs 62,100 for one bike. He/she would be paid an EMI of Rs 5,175 along with a fixed monthly rental of Rs 4,590 per bike. The company also promised to offer a monthly rental income bonus of 5% per bike and a matching income of 10%.

In 2018, Bike Bot introduced a similar scheme, this time for e-bikes. However, the subscription amount for electric bikes was almost double that of petrol bikes.

It is said that investors received returns till early 2019. However, as is with most scams, the repayments soon dried up. Reports suggest that the money collected from investors was diverted elsewhere and into purchasing assets.

After several complaints from investors, the CBI and Enforcement Directorate took up the matter and initiated a money laundering investigation. Sanjay Bhati has since been arrested, but his wife is absconding. The agencies have also attached assets worth Rs 216 crore.

Source: India Today