In a significant crackdown on an alleged multi-crore financial fraud, the Dargamitta police in Tirupati have arrested the Managing Director and two senior managers of Veehan Foods & Beverages. The trio stands accused of orchestrating a widespread scam, cheating hundreds of individuals by collecting hefty deposits for franchise businesses and then failing to deliver the promised returns.
The Arrests and the Accused
The police took into custody Burle Vijay Kumar (34), the Managing Director of Veehan Foods & Beverages and Grameena Home Foods. Alongside him, managers Annepogu Mahendra Kumar (51) and Sankranthi Suneel (37) were also arrested. All operations were run from the company's office located in Magunta layout, Nellore. The arrests on January 6 came after a joint complaint was filed by 18 victims on December 31, 2023. The accused were subsequently produced before the court, with main accused Vijay Kumar now lodged in Nellore central jail.
Modus Operandi: Luring Victims with Lucrative Offers
According to Nellore SP Ajitha Vejendla, the accused used social media advertisements to attract potential investors. They offered franchises for the supply of sweets, biscuits, pickles, and other food items. The scheme presented an apparently irresistible package: after paying a deposit of Rs 3.5 lakh, each franchisee was promised monthly benefits including Rs 12,000 for shop rent, Rs 8,000 as employee salary, Rs 7,000 as monthly interest, and a 30 percent commission on all sales.
Believing these assurances, victims transferred the money and initially received goods and payments until August 2025. This initial period of compliance was a calculated move to build trust. However, from September 2025, the supplies and all promised payments abruptly stopped. When the victims demanded refunds of their substantial deposits, the accused began avoiding their calls and messages.
Scale of the Fraud and Investigation Findings
The police investigation revealed a shocking scale of deception. Vijay Kumar had started the company only in January 2025, yet in a short span, managed to collect deposits ranging from Rs 3.5 lakh to a staggering Rs 20 lakh from nearly 500 persons. The fraud was not confined to Andhra Pradesh; it spread across Telangana, Karnataka, and other states.
The total sum misappropriated is estimated to be in crores of rupees. Investigators found that the accused used the classic 'ponzi' scheme tactic: using money from new investors to pay returns to earlier ones, creating an illusion of a legitimate business. Once a critical mass of deposits was collected, they defaulted. The funds, meant for business operations, were allegedly diverted for the personal use of the accused.
This case serves as a stark warning for aspiring entrepreneurs and investors, especially those attracted by 'get-rich-quick' schemes advertised aggressively on social media. It underscores the importance of thorough due diligence before investing large sums in franchise or business opportunities.
