Gorakhpur Police Unearths Multi-Crore Pan-India Fake Luxury Franchise Racket
In a significant inter-state operation, the Gorakhpur police have successfully dismantled a sophisticated multi-crore racket that was operating across India, offering fraudulent franchise licences for luxury bars, lounges, salons, and cafes under the guise of a prominent global fashion and lifestyle television channel.
Three Key Accused Arrested in Mumbai Operation
Three individuals, including a self-proclaimed 'managing director' of the brand's India operations, have been apprehended from Mumbai. The arrested accused are identified as Kashif Khan (49), Naveen Ahuja (33), and Krishna Shah (27), all residents of Mumbai. Police confirmed that they are being transported to Gorakhpur on transit remand for further legal proceedings.
Kashif Khan, the alleged mastermind, was reportedly planning to flee the country when he was intercepted by authorities. All three have multiple criminal cases registered against them in various cities, indicating a pattern of fraudulent activities.
How the Racket Operated and Targeted Victims
The investigation was initiated following an FIR lodged at Ramgarh Tal police station on December 18, 2025. The complaint was filed by Gorakhpur resident Juhi Singh, who alleged that she was cheated of Rs 50.27 lakh under the promise of securing franchise rights in Kanpur and Gorakhpur.
"The accused used forged agreements and fake signatures to deceive victims," explained SP (city) Patil Nimish Dashrath, who led the investigation. "After collecting payments, they refused refunds and even issued death threats to intimidate complainants."
The syndicate specifically targeted aspiring entrepreneurs in tier-2 and tier-3 cities, luring them with high-return franchise opportunities linked to an international luxury brand. Victims were invited to Mumbai offices, given elaborate presentations, and persuaded to invest amounts ranging from Rs 12.5 lakh to over Rs 1 crore.
Sophisticated Fraud Mechanisms Uncovered
Police investigations revealed that Kashif Khan, also known as Sardar Hashim Khan Malik, posed as the managing director of the television channel's India entities and signed high-value agreements nationwide. However, verification with the Ministry of Corporate Affairs confirmed he was never officially appointed as a director and had no legitimate corporate filings in his name.
The racket employed several sophisticated fraud mechanisms:
- Agreements were printed on stamp papers unrelated to the contracting entity
- Company signatures were either missing or completely forged
- In some instances, victims' signatures were allegedly fabricated without their knowledge
- No actual franchise rights or services were ever provided to investors
Organized Network with Defined Roles
The investigation uncovered a well-structured criminal network with clearly defined roles:
- Kashif Khan acted as the mastermind and front-facing 'managing director'
- Krishna Shah, who claimed to be the 'operations head' and is currently evading arrest, handled victim onboarding and collected sensitive documents including Aadhaar, PAN, and GST certificates
- Naveen Ahuja served as the financial controller, routing illicit funds through multiple bank accounts to obscure the money trail
Police discovered that the network operated on a structured 3% commission model, further indicating an organized criminal operation rather than isolated fraud incidents.
Widespread Impact and Ongoing Investigations
Authorities have identified approximately 50 victims across multiple states, though they suspect the actual number could run into hundreds. The racket is believed to have been active since 2014, suggesting years of fraudulent operations.
Separate FIRs have been registered in other cities, including Lucknow's Gomti Nagar, where a complainant alleged fraud amounting to Rs 53 lakh along with criminal intimidation. Three associates of the main accused—Dushyant Singh, Priyesh Jain, and Hardik Gaur—are also under active investigation for their alleged involvement in the scheme.
Police have urged other potential victims who were approached in the name of similar entities to come forward and lodge complaints with Gorakhpur police or through the national cybercrime portal. This coordinated effort aims to ensure all affected parties receive justice and the full extent of the racket is uncovered.
