Kanpur: A case involving the alleged collection of nearly ₹32 crore from around 250 investors in the name of the proposed Mega Leather Cluster project in Ramaipur has come to light. The investors allegedly paid money between 2012 and 2016 for the purchase of land for the project, but no clear evidence of the land acquisition was subsequently provided and their money was not returned after the project was discontinued. Police have registered an FIR against seven people for alleged cheating and other offences and have begun an investigation.
According to the investors, the Mega Leather Cluster was proposed in Ramaipur with the objective of developing a common industrial facility for leather-related businesses. Money was collected from several investors on the promise that land would be acquired for the project. However, the project was reportedly discontinued by the government in 2016 because adequate arrangements for waste management had not been made. Despite the closure, investors allegedly continued to wait for the return of their money.
Sarfaraz Akhtar, a Chennai resident who has been representing the investors, said they became suspicious about the actual status of the project in 2018. According to him, investors found that there was no functioning office for the project, no employees had been appointed and no concrete evidence of land acquisition was made available to them. Following this, investors began collecting information and documents related to the project and the money they had deposited.
The investors have also alleged irregularities in the functioning of the Special Purpose Vehicle (SPV) created for the project. According to their claims, meetings of the SPV were not convened properly and the entire shareholding of the project was eventually distributed among seven major tannery operators. The investors alleged that the share distribution was carried out without properly informing or involving those who had contributed money for the proposed project.
The alleged irregularities prompted the investors to approach Police Commissioner Raghubir Lal and seek action. Following his directions, a preliminary inquiry was assigned to ACP Cantt Priyanka Bajpai. The inquiry continued for around a month and involved examining the investors’ allegations, documents connected with the proposed project and details concerning the funds collected from them.
Police said the preliminary inquiry found sufficient grounds to register a case. An FIR was subsequently lodged at Jajmau Police Station under sections related to alleged cheating and other offences. Investigators are now examining the individual roles of those named in the complaint and tracing the money collected from the investors.
Seven people have been named as accused in the FIR. They include Ashraf Rizwan, operator of Humaira Tannery, along with Shahid Maqsood Alam, Anwarul Haq, Mansoor Ahmed, Farhan Ajmal, Yusuf Ahmed and Dr Shoaib Hasan. Police are examining whether the accused were directly involved in collecting the funds, handling the SPV, arranging the proposed land purchase or managing the subsequent financial transactions.
On Tuesday, a delegation of affected investors met ADCP East Shiva Singh. Around 15 to 20 investors, including Mohammad Arfeen, Tariq Kamal, Sajid Tanners and Danish Akhtar, were part of the delegation. They were informed about the registration of the FIR and the next steps in the investigation.
The investors have demanded the recovery of the approximately ₹32 crore collected from them. They have also said that if the money cannot be returned, land equivalent to their investment should be allotted to them. They want authorities to establish how much money was collected from individual investors, where the funds were transferred and how the money was ultimately used.
The investigation will now examine financial records, SPV documents, share allocations, claims relating to land acquisition and records of payments made by investors. Police are also expected to determine whether additional persons were involved in the alleged financial irregularities. If evidence establishes the allegations, further legal action will follow against those found responsible, while the investigation may also identify other individuals connected with the alleged scheme.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
