Mangaluru: Two Katipalla residents have been accused of running an unlicensed deposit scheme that police believe defrauded more than 10,000 investors. The accused — identified as M. Mohammed Ashraf, proprietor of “New India Royal Scheme”, and his manager Haneef — allegedly promised investors a return of ₹12,000 on payments of ₹1,000 a month for 10 months, with the added lure of prizes such as cars, motorcycles, and gold jewellery.

A complaint filed by one investor states he completed his final payment in April 2025, but the organisers repeatedly delayed settlement. Police said the office was shut two months ago and calls from investors went unanswered. Investigators estimate that deposits exceeding ₹10 crore were collected without regulatory approval. The case has been booked under the Banning of Unregulated Deposit Schemes Act at Surathkal Police Station.