The Delhi Police’s Economic Offences Wing (EOW) uncovered a Multi-Level Marketing (MLM) or Ponzi-style investment fraud totaling approximately Rs. 4.17 crores. Three directors of M/s Duvera Retails Pvt. Ltd, namely Bhoop Singh, Gaurav Verma, and Sanjeev Sharma, were apprehended in connection with the scam. The fraud involved enticing investors with promises of monthly returns, franchise income, and referral incentives under the brand “FunTasteTic Cafe.”
The accused allegedly operated a fraudulent investment scheme using an MLM/Ponzi model, where investors were induced to purchase franchise plans. However, after collecting significant investments, the directors reportedly defaulted on payments, closed their offices and digital platforms, and ceased communication with investors. Investigations revealed that the accused primarily ran the investment scheme as a Ponzi/MLM model, using new investments to pay off earlier investors instead of generating legitimate business returns.
Approximately 1,069 individuals invested around Rs. 4.17 crore in the scheme, with a significant portion of about Rs. 2.88 crore remaining unpaid. Evidence gathered from investors, including bank records, WhatsApp conversations, investment receipts, and promotional materials, supported the allegations. To prevent the misuse of funds, authorities froze four bank accounts linked to the accused and issued Look Out Circulars (LoCs) against them.
A specialized team from the Economic Offences Wing, led by senior officers, was formed to apprehend the accused and further investigate the case. On June 29, the police arrested all three directors from their residences in East Delhi. Bhoop Singh, one of the directors, was identified as a key figure in devising and running the fraudulent investment scheme, while Verma and Sharma were allegedly involved in managing the schemes, mobilizing investors, and handling investor funds.
Custodial interrogations are ongoing to trace the money trail, recover the proceeds of the crime, identify beneficiary accounts and assets, retrieve digital evidence, and determine the involvement of other associates in the fraudulent activities.
