According to the police, Mohan Lal with his sons had floated a private scheme a few months ago. “They used to collect Rs 300 to 1,000 every month from people on the pretext of depositing it in a private firm which offered a better rate of interest and returns. As and when the credit of a person crossed Rs 10,000, the accused would handover a fake fixed deposit receipt to them,” a police officer said.

Whenever the depositors asked for their returns, the duo used to tell them that the locking period for the deposit is two years and they could not withdraw the money, sources said.

“Soon, people started asking for their money and around two days ago, someone got to know that Mohan Lal had been planning to escape after selling his house. It was then that the police was informed about the fraud,” said the Station House Officer of Sector-26 police station, Inspector Ragbir Singh.

The station house officer said they have received around 20 complaints against the accused.