Delhi EOW busts ₹4.17 crore Ponzi scheme, 3 Duvera Retails directors arrested
Synopsis
Delhi's Economic Offences Wing has cracked a ₹4.17 crore Ponzi operation hiding behind a cafe franchise brand — 1,069 investors defrauded, ₹2.88 crore still unpaid, and three directors arrested from East Delhi. Bank accounts are frozen and custodial interrogation is chasing the money trail.
Key Takeaways
Delhi EOW arrested three directors of M/s Duvera Retails Pvt.
Ltd. on 29 June for running a Ponzi/MLM fraud.
The scheme, branded 'FunTasteTic Cafe' , collected approximately ₹4.17 crore from 1,069 investors .
About ₹2.88 crore remains unpaid to defrauded investors.
Four bank accounts linked to the accused have been debit-frozen; Look Out Circulars issued against all three directors.
Accused Bhoop Singh , Gaurav Verma , and Sanjeev Sharma were apprehended from their residences in East Delhi .
Custodial interrogation is ongoing to trace the full money trail and identify other associates.
The Delhi Police's Economic Offences Wing (EOW) has dismantled a Multi-Level Marketing (MLM)/Ponzi-style franchise investment fraud worth approximately ₹4.17 crore, arresting three directors of M/s Duvera Retails Pvt. Ltd. on 29 June. The accused allegedly ran the scheme under the brand name 'FunTasteTic Cafe', defrauding at least 1,069 investors across the capital, according to an official police statement issued on Tuesday, 30 June.
How the Fraud Operated
The accused — directors Bhoop Singh, Gaurav Verma, and Sanjeev Sharma — allegedly lured investors into purchasing franchise plans by promising assured monthly returns, franchise income, and referral incentives through a classic MLM structure. According to investigators, fresh investments were used to pay earlier investors rather than generating returns through any legitimate business activity — the hallmark of a Ponzi model.
After collecting substantial funds, the accused allegedly defaulted on payments, shut down their offices and digital platforms, and ceased all communication with investors. Of the ₹4.17 crore collected, approximately ₹2.88 crore remains unpaid to investors, police said.
Evidence and Preventive Action
Investigators gathered documentary and digital evidence including bank records, WhatsApp chats, investment receipts, and promotional material, all of which corroborate the allegations. To prevent further dissipation of funds, authorities debit-froze four bank accounts linked to the accused and issued Look Out Circulars (LoCs) against all three directors. Police also noted indications of fund diversion and attempts to conceal evidence.
Roles of the Three Accused
Bhoop Singh is alleged to have been the primary architect of the scheme — conceptualising its structure, inducing investors through false assurances of guaranteed returns, and overseeing the collection and diversion of funds. Gaurav Verma allegedly managed the MLM structure, handled investor mobilisation, and was involved in company operations relating to fund collection and utilisation. Sanjeev Sharma is alleged to have continued issuing assurances to investors even after the company had already defaulted on payments — his precise role in fund misappropriation remains under detailed investigation.
All three were apprehended from their respective residences in East Delhi on 29 June by a dedicated EOW team led by Inspectors Kamal Kishor and Sandeep Maan, along with SI Gaurav Kumar and other personnel of Section-VI, EOW.
Investigation Status
Custodial interrogation is reportedly ongoing to trace the complete money trail, identify beneficiary accounts and assets, recover digital evidence, and ascertain the involvement of any other associates. The EOW has handled a series of such MLM-linked fraud cases in Delhi in recent years, reflecting a broader pattern of franchise-model investment scams targeting middle-income investors.
Point of View
Significant funds had already been layered or withdrawn before arrests. Whether the ₹2.88 crore unpaid balance is actually recoverable will be the real test of this investigation.
NationPress
30 Jun 2026
Frequently Asked Questions
What is the FunTasteTic Cafe Ponzi scheme in Delhi?
It was a fraudulent franchise investment scheme operated by M/s Duvera Retails Pvt. Ltd. under the brand 'FunTasteTic Cafe', which promised assured monthly returns and referral incentives through an MLM/Ponzi model. The scheme collected approximately ₹4.17 crore from 1,069 investors before the accused defaulted on payments and shut down operations.
Who were arrested in the Delhi Ponzi scheme case?
Three directors of M/s Duvera Retails Pvt. Ltd. — Bhoop Singh, Gaurav Verma, and Sanjeev Sharma — were arrested on 29 June from their respective residences in East Delhi by the Economic Offences Wing.
How much money do investors stand to lose?
Of the approximately ₹4.17 crore collected from 1,069 investors, about ₹2.88 crore remains unpaid. Custodial interrogation is ongoing to trace the money trail and identify assets that could be recovered.
What action has Delhi Police taken to protect investors' funds?
Four bank accounts linked to the accused have been debit-frozen to prevent further diversion of funds. Look Out Circulars have also been issued against all three directors to prevent them from fleeing the country.
How did the FunTasteTic Cafe scheme work?
The accused allegedly sold franchise plans to investors with promises of guaranteed monthly returns and referral bonuses through a Multi-Level Marketing structure. In reality, investigators found that fresh investor funds were used to pay earlier investors — the defining characteristic of a Ponzi scheme — rather than any genuine business revenue.
