Gorakhpur Police Bust Multi-Crore Franchise Scam, Three Arrested in Mumbai
Gorakhpur-linked multi-crore franchise racket; 3 held in Mumbai
Hindustan Times
Image: Hindustan Times
Gorakhpur police arrested three individuals in Mumbai for allegedly defrauding investors of crores of rupees through fake franchise licenses for bars and salons. The investigation revealed a larger inter-state fraud network targeting aspiring entrepreneurs across multiple cities.
- 01Three individuals arrested in Mumbai for a franchise scam linked to Gorakhpur.
- 02Victims were allegedly duped of crores of rupees through fake franchise licenses.
- 03The accused used forged documents and signatures to gain investor trust.
- 04Payments ranged from ₹12.5 lakh to over ₹1 crore, funneled through various bank accounts.
- 05Authorities suspect a larger inter-state fraud network may be involved.
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In a significant crackdown, Gorakhpur police have apprehended three individuals in Mumbai for their involvement in a multi-crore franchise scam. The accused allegedly duped investors by offering fake franchise licenses for bars, lounges, cafes, and salons of reputed brands. The operation came to light after a complaint was filed by Juhi Singh, a resident of Gorakhpur's Ramgarh Tal area, in December 2025. An FIR was registered under relevant sections of the Bharatiya Nyaya Sanhita (BNS), leading to an extensive investigation. Police discovered that the accused utilized forged documents and signatures to mislead investors, collecting payments that ranged from ₹12.5 lakh (approximately $15,000 USD) to over ₹1 crore (approximately $120,000 USD). The investigation revealed that the group targeted aspiring entrepreneurs across various cities, indicating a potentially vast inter-state fraud network. Authorities believe more victims may emerge as the investigation continues.
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This scam has significant implications for aspiring entrepreneurs who may have lost substantial investments. The investigation may lead to more victims coming forward, highlighting the need for vigilance in franchise opportunities.
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