Franchise Scam Busted; Three Arrested, MD Sent To Jail
Police said the company supplied goods and paid benefits until August 2025, but stopped supplies from September 2025 and failed to pay the assured amounts or refund the deposits.
NELLORE: Nellore Town police have arrested three persons, including the managing director of Veehan Foods & Beverages, for allegedly cheating franchise seekers by collecting large deposits on false promises.
The case was registered at Dargamitta police station (Cr. No. 237/2025) under relevant sections of the Bharatiya Nyaya Sanhita (BNS) and the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019.
According to police, 18 victims, led by complainant Challa Manoz Kumar Nivas, lodged a joint complaint on December 31, 2025, stating that the accused lured them through social media advertisements offering food franchise opportunities. Each victim allegedly paid ₹3.50 lakh as a deposit, with promises of monthly shop rent, staff salaries, interest, and a 30 per cent commission on sales.
Police said the company supplied goods and paid benefits until August 2025, but stopped supplies from September 2025 and failed to pay the assured amounts or refund the deposits.
Investigations revealed that the managing director Burle Vijay Kumar (A1), along with managers Mahendra (A2) and Suneel (A3), allegedly collected deposits from nearly 500 persons across Andhra Pradesh, Telangana, Karnataka and other states, amounting to several crores of rupees.
On January 6, 2026, police arrested all three accused and produced them before a court. A1 was remanded to Nellore Central Jail. Police have moved the court seeking custodial interrogation, frozen the accused persons’ bank accounts, and initiated steps to seize company records and properties to ensure justice to the victims.
