In a shocking case in Bijnor, a private 'bank' that promised members of a particular community to keep their money secured, duped hundreds of people of their money and the main accused reportedly fled to Dubai.
According to the local police, hundreds of villagers in the Nagina area have lost their hard-earned money they deposited with Al Faizan Muslim Fund Ltd, a facility privately owned by one Mohammad Faizi for Muslims to keep their money in a "secured manner".
So far, 170 police complaints have been filed and the police are in the process of ascertaining the extent of loss to the depositors.
The institution had been running for five years in Nagina's Mohalla Lal Sarai in Bijnor.
The accused, Faizi, had also employed some agents to get more customers in the villages.
Police sources said Faizi may have amassed several crores of rupees. Preliminary investigations have revealed that he had quietly sold off his house in the Nagina town before disappearing.
Earning or paying interest on investment is considered un-Islamic in Sharia and many Muslim families shy away from depositing their money in banks and look for interest-free facilities that these private institutions known as 'Muslim fund banks' provide.
Nagina Station House officer Krishna Murari said, "Police have registered a case against Faizi and his partner under the relevant sections of the Indian Penal Code. Two agents collecting money from people have been detained and are being interrogated."