In one of the biggest financial fraud cases to hit Uttar Pradesh in recent times, Ghaziabad Police have registered an FIR against two companies — M/s Vedic Ayurcure and M/s Axis E-Corporation — over an alleged investment scam totalling a staggering ₹5,000 crore. The case was filed at Kavi Nagar Police Station after a local court directed police to act, following a petition from affected investors. Ten individuals connected to the companies' management have been named in the FIR, kicking off a wide-reaching investigation into financial irregularities, illegal fund pooling, and organised deception across several cities in northern India.
Who's Named in the Case
The complaint was filed by advocate Mahesh Kumar Verma, representing a large group of affected investors. The FIR names Dr. Faizan Khan, Urooj Ali Khan, Shamshad Ahmad, Najma Khan, Mukesh Kumar Tyagi, Salauddin, Mohammad Zafar, Harsh Rajan Tiwari, and Pankaj Soni, along with one more unidentified associate. Police have already begun auditing services in India-style scrutiny of the companies' bank accounts, corporate registration filings, and digital transaction logs, working to establish the true scale of the operation and pin down individual accountability.
How the Scheme Was Sold to Investors
According to investigators, the two firms ran an elaborate multi-tiered scheme aimed squarely at everyday people — retail investors, working professionals, and small traders. The pitch was simple on paper: buy a digital membership or "online ID" for ₹9,000, and get a guaranteed fixed monthly payout of ₹1,100 per ID — an eye-wateringly high annual return by any standard. And just like most schemes of this kind, early investors did get paid promptly, which built trust and encouraged people to invest bigger and bigger amounts.
To widen their reach, the companies held large promotional seminars and investor meets across Ghaziabad — in Mohan Nagar, Nehru Nagar, and Raj Nagar — where representatives painted a rosy picture of risk-free, automatic monthly returns. Convinced by all this, hundreds of people poured in their savings; some even took high-interest personal loans or sold household assets just to buy more IDs. Individual investments ranged anywhere from ₹2 lakh to a full ₹1 crore — the complainant himself put in around ₹6.50 lakh. Investigators believe the network pulled in thousands of investors from Ghaziabad, Meerut, Modinagar, Pilkhuwa, and nearby areas.
The Grocery Store Front
To make the whole operation look legitimate, Vedic Ayurcure and Axis E-Corporation also opened physical grocery stores selling household goods and ayurvedic products at discounts of up to 33%. These stores served a very specific purpose — they were used during investor pitches as "proof" that the high returns were backed by real retail revenue and supply chain operations.
The companies took it a step further by offering franchise opportunities under regional brand names like E-Store India, asking prospective franchisees to put down security deposits of ₹25 lakh to ₹50 lakh per outlet. Franchisees were promised that the parent company would handle inventory, logistics, and staffing while paying them fixed monthly commissions. But investigators now believe these stores were largely a front — designed to project financial credibility and pull in even bigger investments from wealthier individuals and institutions.
The Collapse — And a Promoter Who Fled to Dubai
Things started falling apart when the monthly payouts suddenly stopped, with no warning to investors. Soon after, the companies' websites, customer portals, and apps went completely offline. When worried investors showed up at the local offices, they found them locked, with no sign of the executives anywhere.
What's particularly striking is that the main promoter is believed to have fled to Dubai, from where he reportedly continued sending voice messages and video assurances promising refunds — seemingly just to buy time and delay legal action against him.
After initially struggling to get local police to act, the investor group took the matter to court, which ultimately led to the FIR being registered. Police at Kavi Nagar say forensic financial teams are now going through bank transaction ledgers, digital server records, and corporate agreements to trace exactly where the diverted money went. Authorities have issued a public advisory urging people to stay away from unregistered or high-yield investment schemes promising guaranteed monthly returns, and to always verify a company's regulatory compliance before investing.
FAQs
Q1. How much money is allegedly involved in this investment fraud?
The FIR estimates the fraud at approximately ₹5,000 crore, involving thousands of investors across Ghaziabad, Meerut, Modinagar, and nearby districts.
Q2. What was the investment model used by the accused companies?
Investors were asked to buy digital membership IDs for ₹9,000 each, in exchange for a promised fixed monthly payout of ₹1,100 per ID — until the payouts abruptly stopped.
Q3. Where is the main accused promoter believed to be now?
The main promoter is reported to have fled to Dubai, from where he allegedly continues sending voice and video messages promising refunds to investors.