Raipur Police have registered a fraud case against the operator of a local machinery manufacturing company after an unemployed youth alleged he was cheated of nearly ₹2.95 lakh through false promises of a profitable leaf plate manufacturing business.
According to investigators, the accused allegedly lured aspiring entrepreneurs by advertising self-employment opportunities backed by assured buyback agreements, technical support and continuous raw material supply. The complaint further alleges that the machinery supplied by the company became non-functional within an hour of installation, while the remaining contractual commitments were never fulfilled.
Social Media Advertisement Led to Investment
According to the First Information Report (FIR), the complainant, Chandrahas Verma, a resident of Sarra village in Chhattisgarh's Baloda Bazar district, came across social media advertisements in January 2026 promoting a self-employment opportunity through disposable leaf plate (dona-pattal) manufacturing.
Following the advertisement, Verma contacted Shailendra Kumar Rajak, who operates Udaan Machinery under Numanta Care Pvt. Ltd. in Raipur's Sarona area.
The company allegedly offered an integrated business package that included:
- Supply of automated leaf plate manufacturing machinery
- Continuous supply of raw materials
- Free technical support for one year
- A buyback agreement for finished products at predetermined prices
Trusting these assurances, Verma entered into an agreement on March 19, 2026, and paid approximately ₹2.95 lakh, funded through personal savings, loans and security deposits for two tonnes of raw material.
Machinery Failed Soon After Installation
According to the complaint, the business venture collapsed immediately after delivery.
The complainant alleged that the machinery functioned for only about an hour before developing a major mechanical fault.
He further claimed that:
- The promised two tonnes of raw material were never supplied.
- The company failed to honour its buyback commitment for manufactured products.
- Requests for repairs and technical assistance were repeatedly ignored.
- Company representatives eventually stopped responding to calls and messages.
Police Begin Investigation
Following a preliminary review of the complaint and supporting documents, Raipur Police registered an FIR against the accused under relevant provisions relating to cheating, criminal conspiracy and dishonest inducement.
Investigators are now examining the company's business records, contractual documents and financial transactions to determine whether similar complaints exist against the firm.
Authorities are also analysing whether comparable social media campaigns were used to attract additional investors across Chhattisgarh and neighbouring states.
Advisory for Aspiring Entrepreneurs
Officials have urged individuals planning to invest in franchise or machinery-based business opportunities to exercise caution before making advance payments.
Experts recommend:
- Verifying the company's registration and business credentials.
- Inspecting manufacturing facilities personally.
- Reviewing independent customer feedback.
- Legally examining buyback agreements before signing contracts.
- Avoiding large advance payments without adequate verification.
Authorities have advised anyone who suspects similar fraudulent schemes to immediately report the matter to the nearest police station or Economic Offences Wing with all available transaction records and supporting documents.
Shunyatax Global Insight
Investment fraud targeting first-time entrepreneurs continues to evolve through aggressive digital advertising and unrealistic business assurances. Prospective investors should independently verify every commercial claim, conduct due diligence on the company, and obtain legal advice before investing significant amounts. Early reporting of suspected fraud can improve the chances of financial recovery and help investigators identify wider criminal networks.
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