The Economic Offences Wing (EOW) of Delhi Police has arrested three directors of Duvera Retails Pvt Ltd for allegedly orchestrating a Rs 4.17-crore multi-level marketing (MLM) and Ponzi franchise investment fraud under the brand name 'FunTasteTic Cafe'. The accused allegedly lured over 1,000 investors with promises of assured monthly returns, franchise income, and referral commissions before defaulting on payments and shutting down operations. Approximately Rs 2.88 crore remains unpaid.
Arrests and Identification of Accused
According to Delhi Police, the accused have been identified as Bhoop Singh, Gaurav Verma, and Sanjeev Sharma, all directors of Duvera Retails Pvt Ltd. They were arrested on June 29 from their respective residences in East Delhi after a dedicated EOW team tracked them down. The arrests followed a complaint filed by Sanjay Jagdish and several other investors, who alleged that the company induced people to invest in FunTasteTic Cafe franchise schemes by promising guaranteed monthly returns and referral incentives through an MLM model.
Modus Operandi and Legal Action
Investigators alleged that after collecting large sums from investors, the company stopped making payments, shut down its offices and online platforms, and ceased communication with investors. An FIR dated May 22, 2026, was registered at Police Station EOW 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 alleged franchise investment model functioned substantially as a Ponzi and MLM scheme, where funds collected from new investors were allegedly used to pay returns to earlier investors instead of being generated through legitimate business activities.
Investor Impact and Evidence Collection
Police said around 1,069 investors collectively invested approximately Rs 4.17 crore, of which nearly Rs 2.88 crore remains unpaid. More than 70 investors have joined the investigation and submitted documentary and digital evidence, including bank statements, investment receipts, WhatsApp conversations, and promotional material, which investigators said corroborate the allegations. The investigation also revealed that the accused allegedly attempted to destroy evidence by shutting down their offices and websites, removing investors from WhatsApp groups, and discontinuing all communication.
Preventive Measures and Ongoing Investigation
Authorities have debit-frozen four bank accounts linked to the accused and opened Look Out Circulars (LOCs) against all three directors to safeguard the proceeds of crime. A special investigation team comprising officers of Section-VI of the Economic Offences Wing was constituted to investigate the case and apprehend the accused. Following their arrest, the three directors are currently being subjected to custodial interrogation. According to the EOW, investigators are tracing the complete money trail, identifying beneficiary accounts and assets, recovering digital evidence, and examining the involvement of other associates in the alleged conspiracy.
Roles of the Accused
Police alleged that Bhoop Singh played a key role in conceptualising and operating the alleged fraudulent franchise investment scheme and in collecting and diverting investors' funds. Gaurav Verma is accused of managing the investment schemes, mobilising investors, operating the MLM structure, and handling the company's financial affairs. Sanjeev Sharma allegedly induced investors, managed company operations, and continued assuring investors even after the company defaulted on payments. His role in the alleged diversion and misappropriation of investors' funds is also under investigation.
