Varanasi | 26 November 2025 – In a major financial fraud case in Varanasi, two brothers allegedly duped people of nearly ₹10 crore by offering loans and promising installment payments. Shockingly, around 70% of the victims were police personnel, including Head Constables, Sub-Inspectors, Inspectors, and even DCP-rank officers. In total, the accused targeted over 100 individuals, including small traders and commission agents (arhatis).
Modus Operandi of the Gang
Residents of Ashok Vihar Colony, Pahadiya Mandi, Deepak Gupta and Gaurav Gupta established an office in Sarangatalaab around four years ago.
Initially, they offered loans, installment schemes, and other lucrative proposals to gain the trust of investors.
For the first five to six months, they paid small returns to create credibility.
Subsequently, they lured people into taking large loans under the pretext of depositing half the amount, and then vanished with the funds.
The operation also involved Shahid from Meerut, who, through a Chartered Accountant in Ludhiana, managed e-way bills and fake companies. Policemen were encouraged to take loans in their own names or under family members’ names, with the promise that the accused would deposit half of the loan amount themselves.
Policemen and Officers Among Victims
Several police officials, including three CO-rank officers, Head Constables, and Inspectors, were duped.
The accused provided loans ranging from ₹5 lakh to ₹25 lakh in a single day, without extensive paperwork or formalities.
Half the loan amount was deposited by the accused to build trust.
After gaining confidence, both brothers vanished with substantial sums.
Cantt Police arrested Deepak and Gaurav Gupta on Tuesday. The entire case is being investigated under the supervision of DCP Crime.
Impact on Traders and Arhatis
The fraud was not limited to police personnel. Small traders and commission agents in Sarangatalaab were also victims.
The accused carefully planned their schemes to gain trust over time, before absconding with the money.
Many victims have yet to file complaints, fearing exposure or reprisal.
The total amount involved is estimated to exceed ₹10 crore.
Legal Action and Further Investigation
The accused brothers already had prior FIRs registered at Cantt and Kotwali Police Stations.
DCP Crime, confirmed that two FIRs have been filed, and further action will be taken as more victims come forward.
Anyone found involved with the accused in the loan fraud will face strict legal action.
Conclusion
This case in Varanasi highlights not only a sophisticated financial scam, but also how even police officers and traders can fall victim in the absence of due diligence.
Preliminary investigation indicates that the brothers operated in a well-coordinated manner to embezzle crores of rupees under the guise of legitimate loans.
In the coming weeks, more victims and accomplices may be identified, and the investigation is expected to intensify.
The incident underscores the importance of vigilance in financial transactions and the need for strict monitoring and investigation mechanisms to prevent such fraud in the future.
