HYDERABAD: Hyderabad cybercrime police blew the lid off the 712 crore investment fraud by claiming the Chinese handlers could not erase data from one of the phones of Prakash Prajapati, the Indian associate of Chinese fraudsters, since it was in flight mode.

Prakash, who was trapped by cops at an airport, landed himself in trouble by selecting flight mode in phone settings.Prakash was carrying two phones.

Initially, when he was questioned briefly, his associates from Dubai and China found that Prakash was not responding to their messages and not even looking at them.

Suspecting that Prakash might be in the custody of security agencies, his handlers erased data from one of his phones from a remote location.

"To remotely erase the data, the internet is required.

Based on the analysis done from the other phone, we came to know about the different communications and the bank account details and came to the conclusion that it was a 712 crore fraud.

Had the data in the first phone not been erased, perhaps the sum of the fraud would have been much higher," sources in Hyderabad police told TOI.

Police officials said Prakash's Chinese handlers arranged a luxurious stay in Dubai where he has been staying along with his family.

"Prakash comes across as a simple man.

But, we have information that the handlers have provided high-end accommodation, car and other comforts in Dubai to him,"officials said.

By scouring his new passport, police found out that Prakash had travelled to Dubai and China on a business visa.

When police started their investigation in the investment fraud, the role of Prakash came to light.

Prakash came to India on June 30 along with his wife.

He dropped his wife at his native place in Gujarat and after a few days he got on to his official work of arranging more bank accounts through his Indian associates.

"We suspect there could be more Indians like Prakash who are working for the Chinese nationals in helping them arrange bank accounts," an investigator said.

Police said Prakash has crypto wallets through which the Indian depositors' money was getting converted into cryptocurrency.

Police said they are in the process of accessing his old passport to know his travel history.