New Delhi, June 30 (IANS) The Delhi Police’s Economic Offences Wing (EOW) has busted a Multi-Level Marketing or Ponzi-style franchise investment fraud worth around Rs. 4.17 crores and arrested three directors of M/s Duvera Retails Pvt. Ltd, an official statement said on Tuesday.
According to the statement, a complaint was received from Sanjay Jagdish and other investors against M/s Duvera Retails Pvt. Ltd. and its directors, namely Bhoop Singh, Gaurav Verma, and Sanjeev Sharma, alleging that they operated a fraudulent investment scheme under the brand “FunTasteTic Cafe.”
The accused allegedly lured investors to purchase franchise plans by promising assured monthly returns, franchise income and referral incentives through an MLM/Ponzi model. After collecting substantial investments, they allegedly defaulted on payments, shut down their offices and digital platforms, and stopped responding to investors.
Investigation revealed that the accused operated the franchise investment scheme substantially as a Ponzi/MLM model, wherein fresh investments were allegedly used to pay earlier investors instead of generating returns through genuine business activities.
So far, the investigation has revealed that approximately 1,069 people invested around Rs 4.17 crore, of which about Rs 2.88 crore remains unpaid. Documentary and digital evidence collected from investors, including bank records, WhatsApp chats, investment receipts and promotional material, corroborates the allegations.
To safeguard the proceeds of crime, four bank accounts linked to the accused were debit frozen and Look Out Circulars (LoCs) were opened against all three accused. Investigation also indicates diversion of investors’ funds and attempts to conceal evidence, police said.
A dedicated team comprising Inspectors Kamal Kishor and Sandeep Maan, SI Gaurav Kumar, ASI Harvinder Singh, HCs Sandeep and Gaurav, Ct. Praveen, W/HC. Sushila and other staff of Section-VI, Economic Offences Wing, under the supervision of senior officers of EOW, was constituted to apprehend the accused persons and carry out further investigation, the statement mentioned.
On June 29, all three accused persons, namely Bhoop Singh, Verma, and Sharma, were apprehended and arrested from their respective residences in East Delhi.
As per police investigation, Bhoop Singh played a key role in conceptualising and operating the fraudulent franchise investment scheme, inducing investors through false assurances of guaranteed returns and participating in the collection and diversion of investors’ funds.
Another director, Verma, is alleged to have actively participated in the management of the investment schemes, investor mobilisation, operation of the MLM structure and handling of company affairs relating to collection and utilisation of investors’ money.
The third director, Sharma, is alleged to have actively participated in inducing investors, managing company operations and issuing assurances to investors after the company defaulted in making payments. His role in collection, diversion, and misappropriation of investors’ funds is under detailed investigation.
Custodial interrogation is reportedly in progress to trace the complete money trail, recover the proceeds of crime, identify beneficiary accounts and assets, recover digital evidence and ascertain the involvement of other associates.
—IANS
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