In a significant crackdown, senior police officials in Uttar Pradesh have initiated stringent legal proceedings against a businessman accused of masterminding a massive financial fraud estimated at a staggering Rs 800 crore. The action targets the alleged multi-level marketing scam that has impacted lakhs of people across several states.
Gangsters Act Invoked Against Accused and Associates
Deputy Inspector General (DIG) of Bareilly Range, Ajay Sahani, has issued orders for the registration of a gang under the stringent Gangsters Act. A history sheet has also been directed to be opened against the primary accused, Kanhaiya Lal Gulati, who is the CEO of Canviz Industries Ltd. This legal move signifies the seriousness with which authorities are treating the widespread allegations.
Officials confirmed that proceedings to attach Gulati's properties under Section 14(1) of the Gangsters Act are currently in progress. This step is aimed at recovering the proceeds of the alleged fraud. Alongside Gulati, two of his associates are also under police scrutiny. Mohammad Yaseen is facing one case at Baradari police station, while Ashish Mahajan has been booked in a total of 10 cases across Baradari and Prem Nagar police stations.
Wide Net of Fraud: 40 FIRs Across Multiple States
The scale of the alleged deception is vast. Police records indicate that Kanhaiya Lal Gulati is named in approximately 40 First Information Reports (FIRs) filed in different states. The breakdown of cases reveals a concentrated effort in Uttar Pradesh, with 34 cases registered in Bareilly district alone. Further cases are spread out with two in Shahjahanpur, and one each in Ayodhya, Kasganj, and Bero. A case has also been filed in Ranchi, Jharkhand, highlighting the interstate nature of the operation.
Investigators allege that Gulati duped a vast number of investors through a multi-level marketing (MLM) model promoted by his company. Despite the numerous cases, Gulati, along with his family, has been absconding since the year 2020. Consequently, police have issued look-out circulars against him to prevent his potential escape from the country and aid in his apprehension.
Ongoing Investigation and Legal Ramifications
Authorities have stated that the investigation is being driven forward based on the evidence collected so far. The invocation of the Gangsters Act is a critical escalation, as it allows police to target not just individual crimes but the entire organized criminal activity of the gang. It empowers them to take pre-emptive action, including property attachment, against those accused of being habitual offenders.
This case underscores the challenges faced by law enforcement in tackling large-scale financial frauds that span multiple jurisdictions. The actions ordered by DIG Sahani reflect a determined effort to use all available legal tools to bring the accused to justice and provide a measure of redress for the alleged victims who lost their investments.
