Ponzi Schemes basically means paying the Investors unusually High returns not from Profits but from newer and newer investors funds. New victims for paying off old victims.
Even Pyramid Schemes ( many operating in India ) are a variant of Ponzi Fraud Model.
How Sudipta Sen's Saradha Chit Fund Worked, please click :-
How Sudipta blew the Hard Earned Monies of his Investors ,:-
Please , also click :-