Lucknow Police arrest two for ₹10 lakh Instagram startup loan fraud
Synopsis
Two men from Patna are in custody after allegedly posing as loan facilitators on Instagram, collecting ₹10 lakh from a Lucknow youth under the guise of Udyam Setu startup assistance, and then threatening him and his family when he refused further payments — a structured fraud-and-extortion pattern that police say targeted aspiring entrepreneurs.
Key Takeaways
Lucknow Police arrested Sadiq Hasnain and Shoaib Zafar , both residents of Patna, Bihar , on 12 October 2026 .
The accused allegedly defrauded complainant Aman Kumar , age 21 , of ₹10 lakh by promising a startup loan through the Udyam Setu platform via Instagram .
After receiving the money, the duo allegedly threatened Kumar and his family with death and bodily harm to extort additional funds.
0392/2026 was registered under Sections 318(4) and 308(5) of the BNS at Vibhutikhand police station.
Police are probing possible links to other similar fraud and extortion cases.
Lucknow Police have arrested two men from Patna, Bihar, for allegedly defrauding a 21-year-old resident of Lucknow of ₹10 lakh by falsely promising to secure a startup loan through the Udyam Setu platform and subsequently threatening him and his family with death and bodily harm. The arrests were made on 12 October 2026 near Blent House Cafe, Kisan Bazaar, within the Vibhutikhand police station jurisdiction.
How the Fraud Unfolded
The complainant, Aman Kumar, son of Kailash Kumar and a resident of Ghantepe Gadhiya in the Dargah Saadatganj area of Lucknow, filed a complaint at the Vibhutikhand police station on 12 October 2026. Kumar alleged that the accused contacted him through Instagram, offering financial assistance and loan facilitation for small businesses under the Udyam Setu scheme. After gaining his trust, they allegedly collected ₹10 lakh from him under the pretext of setting up his startup.
When Kumar declined to pay further amounts beyond the initial sum, the accused reportedly threatened to kill him and cause serious bodily harm to his family members. They also allegedly threatened to file false cases against him and his relatives — a common escalation tactic used in online extortion rackets.
FIR Registered, Accused Identified
An FIR (No. 0392/2026) was registered at the Vibhutikhand station under Sections 318(4) and 308(5) of the Bharatiya Nyaya Sanhita (BNS). The two accused named in the FIR are Sadiq Hasnain, son of Shakeel Hasnain, and Shoaib Zafar, son of Zafar Saeed — both residents of Patna district, Bihar. The case is being investigated by Sub-Inspector Raghuvendra Pandey.
Arrests and Modus Operandi
Acting on information from the complainant and local intelligence, a police team — formed under senior officers and the leadership of the Vibhutikhand station house officer — traced and apprehended both men on 12 October 2026. According to preliminary findings, the duo systematically targeted individuals interested in starting small businesses and startups via Instagram, luring them with attractive loan and financial assistance schemes before collecting money through multiple means.
Notably, the accused allegedly demanded additional payments after receiving the initial amount. Victims who refused were subjected to threats of death, serious injury, and false legal action against themselves and family members — indicating a structured extortion pattern beyond a simple one-time fraud.
Investigation Ongoing
Police say the probe is focused on establishing the precise role of each accused, identifying any additional co-conspirators, and determining whether the duo is linked to similar fraud and extortion cases elsewhere. The investigation is ongoing.
Point of View
A confidence scam exploiting government scheme branding like Udyam Setu to lend legitimacy; second, an extortion escalation when the victim balks at further payment. The use of Instagram to target aspiring first-generation entrepreneurs is particularly troubling — a demographic with limited financial literacy and a high desperation to access formal credit. What requires scrutiny is whether law enforcement is tracking the broader network: single-operator duos rarely run these schemes in isolation, and the inter-state dimension — Lucknow victims, Patna accused — suggests a mobile, organised racket rather than an opportunistic con.
NationPress
13 Oct 2026
Frequently Asked Questions
What is the Lucknow Instagram startup loan fraud case?
Two men from Patna, Bihar — Sadiq Hasnain and Shoaib Zafar — were arrested on 12 October 2026 for allegedly defrauding Lucknow resident Aman Kumar of ₹10 lakh by posing as loan facilitators on Instagram and promising startup funding through the Udyam Setu platform. The accused then threatened Kumar and his family when he refused to pay more money.
What charges have been filed against the accused?
An FIR (No. 0392/2026) was registered at Vibhutikhand police station in Lucknow under Sections 318(4) and 308(5) of the Bharatiya Nyaya Sanhita (BNS), which relate to cheating and criminal intimidation respectively. Sub-Inspector Raghuvendra Pandey is leading the investigation.
How did the accused target their victims?
According to police, the accused identified targets through Instagram, approaching individuals interested in starting small businesses. They offered attractive loan and financial assistance schemes, gained the victims' trust, collected money in stages, and then threatened those who refused further payments with violence and false legal cases.
What is the Udyam Setu platform and why was it used in this fraud?
Udyam Setu is a government-linked platform associated with startup and MSME loan facilitation in India. The accused allegedly used its name to appear credible and trustworthy to aspiring entrepreneurs, exploiting the platform's legitimacy to lure victims into transferring money.
Is the investigation still ongoing?
Yes, police are continuing to probe the exact role of each accused, identify potential co-conspirators, and determine whether the duo is linked to similar fraud and extortion cases in other locations. The inter-state nature of the crime — suspects from Patna operating in Lucknow — suggests the network may be broader.
