Ludhiana Franchise Scam: Five Directors Booked for ₹2.5-Crore Fraud

The complainant alleged the company reneged on its commitments and cut all communication after he made the payment.
The complainant alleged the company reneged on its commitments and cut all communication after he made the payment. 

A shocking franchise fraud case has come to light in Ludhiana, where five directors of a Delhi-based packaged snacks company have been booked for allegedly cheating a local industrialist of ₹2.5 crore. The scam, which began with the promise of a lucrative franchise opportunity, has once again exposed the dark side of India’s rapidly growing franchise sector.

According to police, the accused have been identified as Ashok Aggarwal, Archana Aggarwal, Sharad Aggarwal, Priyanka Aggarwal, and Vaibhav Aggarwal—all directors of the same firm. The FIR was filed based on a complaint by Satish Sood, a resident of Janpath Estate, Jhammat village, Ludhiana.

Sood stated that he had initially approached the company to obtain a franchise for Ludhiana. The firm allegedly asked for ₹25 lakh as an advance payment, which he paid. Later, he was persuaded to pay another ₹22.5 lakh with promises of raw materials, trained staff, and operational support.

However, the accused later claimed that the franchise could not be granted for Ludhiana alone and insisted that Sood should apply for franchise rights for the entire Punjab region. This new offer required a payment of ₹2.5 crore. They assured him that once he paid ₹1 crore, the company would begin providing full support and infrastructure.

Believing their promises, Sood transferred the amount—but the company reportedly failed to deliver any assistance and eventually stopped all communication. Feeling cheated, he filed a police complaint in September last year.

Sub-Inspector Balwinder Singh, who is handling the investigation, confirmed that the FIR has been registered under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code (IPC). Police have launched efforts to trace and arrest the accused individuals.

This case serves as a crucial reminder for aspiring franchise investors to conduct thorough background checks and legal due diligence before entering into high-value franchise agreements. The allure of quick profits can often hide well-planned scams—turning dreams of entrepreneurship into financial nightmares.

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