EOW arrests three in Rs 4.17-crore MLM-Ponzi fraud
Delhi Police's Economic Offences Wing (EOW) has arrested three directors of Duvera Retails Pvt Ltd for allegedly operating a Rs 4.17-crore multi-level marketing (MLM) and Ponzi investment fraud under the brand name FunTasteTic Cafe. The accused — Bhoop Singh, Gaurav Verma and Sanjeev Sharma — were taken into custody on June 29 from their residences in East Delhi after an EOW team tracked them down.
Investors lured with false promises
The case was initiated based on a complaint by Sanjay Jagdish and several other investors. They alleged that the company induced people to invest in FunTasteTic Cafe franchise schemes by promising guaranteed monthly returns, franchise income and referral incentives through an MLM model. After collecting substantial sums, the company stopped making payments, shut its offices and online platforms, and ceased all communication with investors.
Legal action and investigation
An FIR dated May 22, 2026, was registered at the EOW police station under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and Section 21 of the Banning of Unregulated Deposit Schemes Act, 2019. During the investigation, the EOW found that the franchise investment model allegedly operated as a Ponzi and MLM scheme, with money collected from new investors used to pay returns to earlier investors instead of being generated through legitimate business activities.
Over 1,000 investors affected
The police said 1,069 investors collectively invested about Rs 4.17 crore, of which nearly Rs 2.88 crore remains unpaid. More than 70 investors have joined the investigation and submitted bank statements, investment receipts, WhatsApp chats and promotional material, which investigators said support the allegations.
Evidence tampering and preventive measures
The probe also found that the accused allegedly tried to destroy evidence by shutting their offices and websites, removing investors from WhatsApp groups and cutting off communication. Authorities have debit-frozen four bank accounts linked to the accused and opened Look Out Circulars (LOCs) against all three directors to prevent them from fleeing the country.
