Bareilly| The Canviz investment scam that has surfaced in Bareilly is not merely a case of financial fraud; it represents a systematic abuse of public trust placed in government institutions. The alleged mastermind, Kanhaiya Lal Gulati, is accused of misleading investors by using the name and official logo of the Life Insurance Corporation of India (LIC) to promote his private company. By creating the impression of a formal association with the country’s largest public-sector insurer, Gulati reportedly induced hundreds of people to invest, siphoning off crores of rupees over several years.
Investigations have revealed that Gulati incorporated Canviz Sales and Marketing Private Limited in 2006. In its initial phase, he roped in associates from Lucknow and Kanpur to expand the company’s footprint. From 2007 onwards, Canviz began mobilising funds under the garb of investment schemes structured on a multi-level marketing (MLM) model, promising unusually high returns within a short span.
LIC’s Logo Turned into a Tool of Deception
To build credibility and win investor confidence, Canviz prominently displayed LIC’s name and logo across its advertisements, website, seminars and promotional material. Potential investors were led to believe that the company was either authorised by or directly linked to the government-owned insurance major. This perceived legitimacy played a decisive role in persuading people to invest their savings without conducting independent verification.
LIC later clarified that Canviz had neither been authorised to sell insurance products nor permitted to use its name or registered logo in any form. Acting on this unauthorised usage, LIC’s Bareilly divisional office issued a notice to Canviz’s executive director on March 22, 2016, seeking an explanation within seven days. When no response was received, a reminder was sent on May 10, 2016. Only thereafter did the company remove LIC’s logo from its website and promotional content. By that time, however, substantial financial losses had already been inflicted on investors.
Promise of High Returns in 22 Months
On paper, Canviz’s schemes were presented as highly lucrative. Investors were told that by depositing funds for 22 months, they would receive a monthly return of five per cent, along with full repayment of the principal amount at the end of the term. In the early stages, timely payouts were made to select investors to reinforce confidence. As the network expanded, delays and irregularities in payments began to surface.
The company organised lavish seminars at upscale hotels, targeting unemployed youth and small investors. Participants were encouraged to enrol others under the MLM structure in exchange for hefty commissions. Select agents were allegedly rewarded with luxury cars. Prospective members were also asked to spend up to ₹25,000 on LIC policies as a prerequisite for joining Canviz, while other listed products were priced significantly lower.
Complaints Expose the Extent of the Scam
Social activist Amit Mishra played a key role in bringing the alleged fraud to light by sharing documents and details of the network with the media and authorities. His complaints helped investigators piece together the company’s operational structure, investment patterns and the role of Gulati and his associates. Subsequently, multiple FIRs were registered against Kanhaiya Gulati, his wife, son and several other collaborators.
SIT to Probe Entire Network
SSP bareilly said that given the scale and complexity of the Canviz case, a Special Investigation Team (SIT) is being constituted. The SIT will conduct a comprehensive probe into all registered cases, scrutinise company records, bank accounts and financial transactions, and identify the full extent of the network involved.
Officials maintain that the objective of the investigation is not only to ensure strict legal action against those responsible, but also to create deterrence against similar investment scams in the future.
The Bareilly episode once again raises pressing questions about delayed enforcement against the misuse of government symbols and how the lure of high returns continues to make ordinary citizens vulnerable to organised financial fraud.
