Ahmedabad Engineer Files Police Complaint Over Rs 30 Lakh Gym Investment Fraud
A 30-year-old engineer from the Vastral area of Ahmedabad has filed a formal police complaint alleging that he was cheated out of approximately Rs 30 lakh by two brothers. The complaint, registered at the Paldi police station, accuses the duo of inducing him to invest in a gym business with false promises of a partnership and assured financial returns that never materialized.
Details of the Alleged Fraudulent Scheme
According to the detailed complaint, the engineer was a regular patron at a gym in Vastral where he first encountered the two brothers who were associated with the facility. In November 2020, the brothers approached both the complainant and his father with what seemed like a lucrative business proposal. They presented a plan to open a new gym in the Paldi area, claiming it would generate substantial profits and offering the engineer an administrative role in the venture.
The brothers allegedly convinced the engineer to invest Rs 45 lakh, promising monthly returns ranging between Rs 2 lakh and Rs 2.5 lakh. Since his family did not have sufficient liquid funds available, the complainant took a significant step: he secured a mortgage loan of Rs 41.6 lakh in March 2021 to finance this investment.
Financial Transactions and Broken Promises
Between March and July 2021, the engineer transferred a total of Rs 41.8 lakh to the accused brothers through multiple banking transactions. He supplemented this with an additional Rs 3.4 lakh paid in cash, bringing his total investment to approximately Rs 45 lakh, as initially discussed.
Despite these substantial financial commitments, the complainant alleges that the brothers repeatedly delayed executing a formal written partnership agreement, often urging him to "keep faith" in their verbal assurances. A partnership deed was finally signed on November 27, 2021, which officially reflected the engineer's 30% stake in the gym business.
However, the problems began almost immediately after the agreement was signed. The engineer claims he was never provided with proper, transparent financial accounts for the business and did not receive any share of the promised profits. The accused brothers consistently maintained that the gym was operating at a loss, despite the initial assurances of high profitability.
The Final Blow: Sale of the Gym and Financial Loss
The situation reached a critical point in August 2023 when the brothers reportedly sold the gym for Rs 72 lakh. Based on his 30% partnership stake, the engineer was entitled to receive Rs 18.6 lakh from this sale. However, he alleges he received only Rs 15 lakh, resulting in a direct shortfall of Rs 3.6 lakh from this transaction alone.
In his police complaint, the engineer has made further serious allegations. He claims that the brothers used forged invoices and manipulated bills to deliberately misrepresent the true financial status of the gym business. This alleged financial manipulation, combined with the unpaid profits and the shortfall from the gym sale, has resulted in a total calculated loss of nearly Rs 30 lakh for the complainant.
Police Investigation Underway
The Paldi police have registered the complaint under relevant sections of the Indian Penal Code (IPC) pertaining to breach of trust and cheating. Police officials have confirmed that a formal investigation has been initiated into the matter. Further legal action will be determined based on the findings of this ongoing investigation.
This case highlights the risks associated with informal investment agreements and the importance of thorough due diligence and proper legal documentation in business partnerships, even when dealing with acquaintances from regular social or commercial settings.
