The feeling of running a business and being an entrepreneur itself gives a dopamine rush. Isn’t it?
The excitement of building something of your own, setting goals, and chasing success fuels happiness and satisfaction. But the biggest challenge for many is knowing where to start and what to do.
Unfortunately, in this phase of uncertainty, fraudulent companies try to trap aspiring entrepreneurs by luring them into fake business models.
One of the victims of such fraud, Anurag (name changed) reached out to us and told us how he invested ₹12.50 in the fake delivery franchise business, and now not getting any response.
However, his alertness and awareness helped him taking a quick action and reporting a complaint.
The Fraudulent Franchise Offer
Anurag came across an advertisement for a delivery business called Xkom Delivery Services, which was offering partnership opportunities.
The company claimed that franchise partners could earn commissions of up to 10% on setting up franchise models under them and 1% on delivery services in their area.
Anurag and his friend found it an opportunity to fulfill their dream of entrepreneurship and visited the company’s office in Mumbai for more details.
Xkom Delivery Services presented various franchise models, including zonal, district, city, and local franchises, each with different investment and benefit structures.
Anurag and his friend opted for the zonal franchise, paying:
- ₹50,000 as software fees
- ₹2 lakh as franchise fees
- ₹10 lakh as a security deposit
The company assured them that all business expenses, including rent, salaries, and recruitment, would be handled by them.
Red Flags and Growing Doubts
Initially, everything seemed fine, but soon Anurag began noticing inconsistencies:
- The company had two different websites with different domains (.in and .net).
- The GST-registered address did not match the actual business location.
- The company had registered for GST in June 2024 but claimed to have been operating since 2023.
- They falsely claimed to be delivery partners of Amazon and Flipkart.
- Though they claimed to be MCA-registered, further investigation raised doubts about their legitimacy.
Despite these concerns, Anurag initially received some responses from the company and even had a few employees recruited, along with partial coverage of monthly expenses.
However, the promised software worth ₹50,000 was never provided.
Soon, the company stopped responding to his calls and emails altogether.
How Our Team Helped in Him?
Realizing he had been duped, Anurag contacted our team for help.
We immediately conducted a thorough investigation into Xkom Delivery Services and found multiple irregularities.
Based on our findings, we assisted him in filing complaints with the relevant authorities.
Key Lessons from This Case
- Thoroughly Verify Business Credentials – Always check a company’s GST registration, MCA status, and legal documents before investing.
- Beware of Unrealistic Promises – If an opportunity sounds too good to be true, it probably is. Learn as much as you can about businesses that promise guaranteed earnings without effort.
- Cross-Check Online Information – Mismatched addresses, multiple websites, and inconsistencies in official documents are major red flags.
- Demand Proper Documentation – Always get agreements and commitments in writing, and ensure clarity on refund policies.
- Act Fast in Case of Fraud – If you suspect fraud, take immediate action. Reporting the issue to authorities quickly increases the chances of recovery.
Here the most important part is to take quick action by learning the right way how to report online frauds in India. Always remember, a timely action and alertness can protect you not only from financial losses but emotional distress as well.
Conclusion
Anurag’s case highlights the importance of vigilance and timely action in avoiding financial fraud.
While he was initially misled, his cautious approach to identifying red flags and seeking expert help played a crucial role in recovering his hard-earned money.
If you ever encounter a suspicious business opportunity, research thoroughly and seek professional advice before making any commitments.
