CMD Of Novo Health Care Held For Cheating Dubai-Based Man Of Rs 70 Crore

Noida: The chairman and managing director (CMD) of Novo Health Care, a Chennai and Dubai-based pharmaceutical firm, was arrested from Bengaluru, on charges of duping an investor of Rs 70 crore. A case in this regard was registered in Noida three months ago, as the investor’s IT solutions firm’s office is located in Noida as well as Dubai, senior police officers said on Friday.

Police identified the arrested man as Ramani Kalpati Ramachandran Venkata, a native of Chennai, and CMD of Novo Health Care.

They said on December 5, 2023, Dubai-based Shakir Hussain complained at the Sector 20 police station in Noida that he had been defrauded of the Rs 70 crore that he invested in Venkata’s company.

“Hussain alleged that Venkata embezzled the money he invested and never gave him the promised returns,” said deputy commissioner of police (DCP) (Noida) Vidyasagar Mishra, adding that an FIR was lodged in the matter and a probe was launched immediately.

The FIR named six suspects — Novo Healthcare company, Venkata, and four of his family members.

Hussain is the managing director of GenX Systems, an IT solutions firm that has its offices in Noida, and Dubai. He first invested in Novo Health Care in 2018.

“I met Venkata at my office in Noida in 2017, when he came with an investment opportunity. He promised me incredible returns on my investments and in January 2018, I invested some amount in the company and got decent returns,” said Hussain, who also has a house in Delhi’s Jafrabad.

At first, everything seemed promising as Hussain received regular returns on his investments.

“Along with personal investment, I also invested in the company through my company as well. I was paid profits initially as per terms and conditions of our investment. Later, in December 2018, Venkata invited me to his daughter’s wedding in Chennai, where he again asked me to invest more. I happily accepted and in 2019, I again made an investment, this time in the form of a loan of ₹70 crore,” said the complainant.

However, this time, cheques issued by the suspect in Hussain’s name started bouncing.

“I grew suspicious when the promised returns failed to materialise. When I tried to contact Venkata, he assured me that my investment was safe. But when months passed, and I asserted myself, the suspects started threatening me to back away, saying that I would not be able to take back the money I invested as that amount was gone forever,” said Hussain.

For the next four years, Hussain continued to negotiate with the company’s stakeholders, including Venkata, to get his money back.

“… In 2023, I found out that Venkata had fled the country to Dubai. With my savings gone and debts mounting, I now found myself on the brink of a financial ruin and decided to come from Dubai to Noida and file a case against him in December,” said Hussain.

On March 5, 2024, the suspect was traced to Bengaluru, and held by a team of the Sector 20 police station.

Police said they had received a tip-off that the suspect would visit India for a commitment, following which he was nabbed.

“The suspect faces charges under sections 420 (cheating), 406 (criminal breach of trust), 467, 468 and 471 (all related to forgery), 506 (criminal intimidation) and 120B (party to criminal conspiracy) of the Indian Penal Code. Further investigation into the matter is underway,” said DCP Mishra.

Hussain is now in Noida to help with police investigations.

Venkata and his lawyer Sumant VC did not respond to requests for comment despite repeated calls and messages.

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