Deoria | A purported chit fund company, under the guise of e-commerce and network marketing, defrauded investors of nearly ₹1.5 crore. Based on complaints, the police have registered a fraud case against the company’s operators and associates, all of whom are currently absconding.
Prabhunath Gupta, a resident of Gauribazar in Deoria district and a former employee of the company, filed a complaint stating that the company collected money from investors and then stopped payments, eventually shutting its office. According to Gupta, a total of ₹1,50,56,000 of investor funds are trapped, including ₹77 lakh of his own money.
“Quick Profits Promised Through Dropshipping”
According to the complaint, Prabhunath first met SunDropShip Reseller Private Limited’s owner Sunil Singh in 2023. Sunil presented himself as a successful e-commerce entrepreneur and explained the company’s business model.
The company allegedly operated on a dropshipping model and promised investors quick, high returns. Sunil, along with his wife Beena Singh, director Arvind Kumar Deen, senior advisor Ahmed Ali, and other associates, managed the company.
Investors were promised:
- 6–9% guaranteed returns in 90 days
- 24–40% annual returns
- Freedom to withdraw money at any time
- Delivery of products at any time
Relying on these claims, Prabhunath invested his own funds and also brought in friends and relatives.
Initial Gains, Then Sudden Fraud
The complaint states that initially, the company provided partial returns and product deliveries for a few months, building investors’ trust. However, after June 2024, payments suddenly stopped. When investors demanded their money, the operators cited technical issues or market losses as excuses. Gradually, they stopped answering calls and visiting the office.
According to victims, funds of several investors, including Prabhunath Gupta, Vijay Shankar Gupta, and Shivkumar Gupta, remain trapped. There is now concern that the operators embezzled the entire amount and absconded.
Families in Distress, FIR Registered
This fraud has caused financial distress for several families. Some investors had taken loans to invest, leaving them under heavy financial pressure.
Police have registered an FIR and initiated an investigation. All company transactions, accounts, and documents are being examined, and the search for the absconding operators continues.
FCRF Analysis and Warning
Experts from the Future Crime Research Foundation (FCRF) categorize such investment frauds as “emerging financial crimes.” They warn that frauds using digital platforms and network marketing to lure investors with high returns may become more complex in the future.
FCRF advises investors to:
- Verify the company’s registration and legal status before investing
- Treat claims of unusually high returns as a red flag
- Immediately report any suspicious transactions
Lesson — Be Cautious of Quick Profit Claims
The case highlights that:
- Schemes promising unusually high or guaranteed returns are often highly risky
- Investing without licenses or clear information is dangerous
- If payments are not transparent, take prompt legal action
Police investigations are ongoing to trace where and how the funds were transferred, and to identify other victims of this fraud.
