Mumbai: Mumbai police have arrested three people in a major franchise fraud case targeting entrepreneurs in India. They were ordered to pay for profitable Fashion TV-branded companies such as bars, lounges, cafes, and salons but didn’t deliver the services.
The Accused
The arrested individuals were identified as:
- Kashif Khan (Kashif Sardar Hashim Khan Malik) – the alleged mastermind of the scam.
- Krishna Devi – responsible for the operational management.
- Naveen Ahuja (Naveen Sir Ahuja) – accused of managing the finances.
The three were caught in Mumbai and are being taken to Gorakhpur by the authorities for further investigation. Other accomplices are still at large, with one female employee linked to the scam.
How the Scam Operated
Victims were lured into investing in “F Bar by Fashion TV” franchises with promises of high returns. Franchise fees and setup costs ranged from ₹12.5 lakh to ₹1 crore per investor. Payments were made at various bank branches in Vile Parle, and fabricated contracts with forged signatures were created.
When contacted, Fashion TV Private Limited said it had no connection with any of the franchise agreements and confirmed the fraudulent nature of the operation.
Spread of Complaints
The case came to light after Park Hospitality in Gorakhpur reported losses of more than ₹1 crore. Further investigation found victims from Lucknow, Patiala, Baroda, Udaipur, Gwalior, Panaji, and Jaipur were also defrauded.
Modus Operandi
Police investigations suggest the syndicate operated a multi-city franchise network using fake offices and false corporate identities. Victims of the scheme were handed forged agreements that looked genuine until verified through forensic examination. Authorities are now searching for the full extent of the network.
Law Enforcement Action
Entrepreneurs have been urged to exercise due diligence in negotiating franchise agreements. The authorities emphasized making sure official contracts are in place, corporate records are up to date, and that there is a brand affiliation with that company.
