Udaipur District Police in Rajasthan have busted a major multi-state investment fraud allegedly run under the cover of an e-commerce logistics company.
Police arrested three key accused who allegedly operated a ₹71.59 crore scam by promising investors franchise ownership, warehouse distribution rights and virtual retail business opportunities.
The arrested accused have been identified as Naresh Kumar Saini of Kotputli in Jaipur district, along with Yogesh Saini and Manoj Kumar Saini, both from Mahendragarh district in Haryana.
Investors Lured With Logistics Business Promises
The case came to light after a Jaipur-based logistics businessman filed a criminal complaint with Udaipur Police.
According to the complaint, the accused approached him as representatives of a newly formed logistics enterprise that claimed to be building a pan-India supply chain network.
They allegedly presented business plans, digital presentations and partnership documents to make the operation appear legitimate.
The complainant invested ₹9.10 lakh under heads such as security deposit, commercial lease rent and hub infrastructure costs.
He was reportedly promised recurring monthly revenue and a guaranteed minimum income.
Police Say Infrastructure Was Fictional
During investigation, Udaipur Police found that the company’s claimed logistics and warehouse network was allegedly fake.
Investigators said the accused created corporate entities using identities, PAN cards and credentials of unsuspecting relatives and low-income workers.
This was allegedly done to shield the masterminds from direct regulatory tracking and legal scrutiny.
Pyramid Model Disguised as E-Commerce
Police suspect the racket operated like a multilevel pyramid scheme dressed as a modern e-commerce logistics business.
The accused allegedly targeted people looking for business opportunities, especially in smaller towns and regional markets.
They promoted franchise models, warehouse partnerships and digital storefronts, while collecting upfront payments from investors.
Three Major Fraud Channels Identified
Investigators identified three main collection channels in the alleged scam.
Warehouse Scheme
The syndicate allegedly collected around ₹69 lakh from individuals by promising to build modern regional distribution centres across 23 states.
City Hub Racket
The accused reportedly created more than 650 fictional hyper-local distribution points and collected over ₹6.50 crore in franchise fees from small-town business owners.
Virtual Retailer Network
The largest portion of the fraud came from retail participants.
Police said over five lakh people were enrolled as virtual retailers with promises of automated digital storefronts. Through nominal registration fees, the syndicate allegedly collected around ₹64.40 crore.
Operations Collapsed After Investment Cycle
The alleged e-commerce network collapsed when investors began demanding returns, guaranteed payouts or refunds.
According to complaints, no physical warehouse construction or digital retail deployment took place as promised.
When investors asked for repayment, the company’s representatives allegedly stopped responding.
Local offices were reportedly shut, digital portals were locked and communication channels were disconnected.
Money Trail Under Investigation
Police and forensic banking teams are now examining corporate bank accounts linked to the accused.
Investigators are trying to trace how the ₹71.59 crore collected from investors was moved, layered and converted.
Preliminary tracking suggests that portions of the money may have been used to acquire real estate holdings and luxury personal assets in Rajasthan and Haryana.
The accused have been remanded to extended police custody for further interrogation, asset tracing and recovery of backend data.
Why Financial Records Matter in Franchise Investments
Fake franchise and investment schemes often rely on attractive presentations, fake contracts and manipulated revenue projections.
Before investing in any business model, individuals should verify company registration, bank records, tax filings, audited statements and real operational assets.
Professional bookkeeping services in india can help businesses maintain transparent records, track investor funds and identify suspicious financial patterns before major losses occur.
Shunyatax Global Insight
At Shunyatax Global, we believe every investment decision should be backed by documentation, due diligence and financial verification. The Udaipur fake e-commerce warehouse case shows how easily fraudsters can misuse business terminology to trap aspiring entrepreneurs.
For more updates on cybercrime, investment fraud, taxation, compliance and business finance, visit Shunyatax.in and stay connected with Shunyatax Global.