Pan-India multi-crore franchiseracket busted, 3 held in Mumbai

Lucknow: Leading an inter-state operation, Gorakhpur police have unearthed a multi-crore racket operating across India offering fake franchise licences for luxury bars, lounges, salons and cafes under a global fashion and lifestyle television channel.Three accused, including a self-styled ‘managing director' of the brand's India operations, were arrested from Mumbai. Police said that they were being brought to Gorakhpur on transit remand.The accused — Kashif Khan (49), Naveen Ahuja (33) and Krishna Shah (27), all Mumbai residents — have multiple cases against them in different cities. Khan was allegedly planning to flee the country when he was intercepted.The operation was launched after an FIR was lodged at Ramgarh Tal police station on Dec 18, 2025, on the complaint of a Gorakhpur resident, Juhi Singh. She alleged that she was duped of Rs 50.27 lakh on the promise of a franchise in Kanpur and Gorakhpur. She said that the accused allegedly used forged agreements and fake signatures and later refused a refund. They even issued death threats to her.The investigation, led by SP (city) Patil Nimish Dashrath, revealed a well-organised syndicate that targeted aspiring entrepreneurs by offering fake franchise licences for luxury bars, lounges, salons and cafes under the brand.Police said that the mastermind, Kashif Khan, also known as Sardar Hashim Khan Malik, posed as the managing director of the channel's India entities and signed high-value agreements nationwide. However, verification with the ministry of corporate affairs showed he was never appointed as a director and had no official filings in his name.Investigators claim that hundreds of agreements were executed without legal authority, misleading victims into believing they were dealing with a legitimate corporate executive.A woman, Krishna, who claimed to be ‘operations head', is on the run. She allegedly handled onboarding, collected sensitive documents such as Aadhaar, PAN and GST certificates, and delayed or denied agreement copies despite payments.Naveen Ahuja allegedly acted as the financial controller, routing funds through multiple bank accounts to obscure the money trail. Police uncovered a structured 3% commission model within the network, indicating an organised operation.The syndicate targeted entrepreneurs in tier-2 and tier-3 cities, luring them with high-return franchise opportunities linked to an international luxury brand. Victims were invited to Mumbai offices, were given presentations, and persuaded to invest between Rs 12.5 lakh and over Rs 1 crore.However, police found that agreements were printed on stamp papers unrelated to the contracting entity, with missing or forged company signatures. In some cases, victims' signatures were allegedly fabricated. No actual franchise rights or services were provided.Separate FIRs have been registered in other cities, including Lucknow's Gomti Nagar, where a complainant alleged fraud of Rs 53 lakh and criminal intimidation. Three associates of the accused — Dushyant Singh, Priyesh Jain and Hardik Gaur — are also under investigation.Police have identified around 50 victims across multiple states, though the actual number could run into hundreds. They suspect the racket has been active since 2014.Police have urged victims approached in the name of similar entities to come forward and lodge complaints with Gorakhpur police or through the national cybercrime portal.