Bengaluru police have registered cases against MobiKwik and Lendbox, following complaints from investors who claim that their funds are blocked under the MobiKwik Xtra investment scheme. The complaints allege that the fintech companies promised high, fixed-deposit-like returns and easy withdrawals but later restricted access to invested money. Authorities say more than 1,050 investors across India could be affected, with combined exposure of over Rs 11.9 crore.

Investors have highlighted key issues:

• Investor Arjeet Singh Benchhor reported Rs 4 lakh blocked, citing fund diversion and inactive borrower accounts.
• Investor Mayank Dey invested Rs 3 lakh, with Rs 91,341 still inaccessible.
• Complaints claim the scheme violated RBI guidelines by restricting withdrawals and using funds improperly.
• The Varthur police registered cases under the Information Technology Act and sections 319(2) & 318(4) of the Bharatiya Nyaya Sanhita for cheating and dishonest inducement.

Police are reviewing financial transactions and verifying company records. One MobiKwik Systems Ltd, founded in 2009, continues as a digital wallet offering UPI payments, money transfers, and bill payments. The investigation underscores the need for investor vigilance and regulatory compliance in fintech platforms.

Impact on Investors and Precautions

Experts warn that such blocked-fund cases demonstrate the risks in app-based investments:

• Investment schemes may appear secure but can restrict withdrawals without notice.
• Investors should carefully review company credibility and regulatory compliance.
• Legal remedies, including freezing accounts, are being pursued by authorities to safeguard affected investors.

Investors are advised to monitor digital wallet investments, report suspicious activities, and follow official updates from Bengaluru police regarding the ongoing investigation.