BAREILLY: For months, desperate investors had been writing letters, filing complaints and standing outside police stations, describing vanished savings and unanswered promises. By the time investigators began assembling special teams, the alleged architects of the scheme had already slipped away.
A Trail of Loss, Anger and Alleged Betrayal
What began as a promise of steady returns has hardened into one of the most expansive alleged investment frauds to surface in northern India in recent years. According to police records and complaints reviewed by investigators, the scheme — attributed to Kannaiya Gulati and members of his family — left thousands of investors facing financial ruin, emotional distress and, in some cases, irreversible personal loss.
Several complainants told authorities that after their money was siphoned off, some investors slipped into severe depression. Police files cite multiple deaths that families have linked to financial shock following the collapse of the operation. As outrage spread, victims began staging protests and flooding senior government offices with petitions demanding action.
In Bareilly, officials say at least 40 criminal cases have been registered so far. When complaints from other states are added, the total number of cases has crossed 50, underscoring the scale of the alleged deception.
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The Architecture of a ₹3,000-Crore Scheme
Investigators allege that Gulati’s operation was not confined to a single district or even a single state. According to preliminary estimates, the network spread across districts in Uttar Pradesh, Jharkhand, Bihar and Uttarakhand, drawing in nearly 500,000 people.
The alleged method followed a familiar pattern. Early investors were reportedly paid monthly returns of up to 5 percent, a tactic police believe was designed to build trust and encourage reinvestment. Over time, authorities say, deposits swelled into a corpus exceeding ₹3,000 crore.
Police records identify Gulati, his wife Radhika Gulati and his son Gopal Gulati as central figures. The family is accused of collecting life savings from households across the region, often presenting the venture as a low-risk investment with assured returns. By mid-2025, according to multiple complaints, payments abruptly stopped. Investors say they were given repeated assurances before communication ceased altogether.
Flight, Freezing Orders and the Gangster Act
As complaints mounted, law enforcement agencies moved to escalate the case. The Deputy Inspector General of Police, Ajay Kumar Sahni, publicly stated that proceedings under the Gangster Act would soon be initiated against the accused.
Police say the Gulati family sold properties and land before disappearing, prompting fears that they might attempt to flee the country. In response, authorities issued a lookout circular and placed airports and ports on alert.
Parallel proceedings are underway to trace and seize assets allegedly acquired through illicit funds. Investigators have begun identifying bank accounts, transaction trails and benami properties believed to have been purchased using investors’ money.
Complaints From the Ground, Questions for the State
One of the earliest formal complaints came from Babu Ram, a resident of Veer Savarkar Nagar, who approached senior officials through the chief minister’s portal. In his statement, he alleged that he and his wife invested ₹10 lakh through entities named “Canviz Group” and “Kesh Associates,” using separate identification numbers and bank cheques in December 2024.
According to the complaint, returns were paid initially but stopped in August 2025. Babu Ram has since filed multiple First Information Reports, including one at Baradari police station in Bareilly. He has also raised questions about delays in arrests, noting that despite a growing list of cases over the past six months, no principal accused has been taken into custody.
Senior police officials acknowledge the pressure. Two Special Investigation Teams have been constituted — one tasked with locating and arresting the accused, the other focused on forensic financial analysis. Together, they are working to map the network’s reach and recover assets before they disappear beyond the reach of the law.
