Begum Bazaar bizman duped of ₹25.9 lakh in fake distribution licence scam

A 35-year-old businessman from Begum Bazaar was duped of ₹25.9 lakh in a fake distribution licence scam, after being lured with the promise of a dry fruit products dealership by fraudsters posing as representatives of ‘Ki Zo Nuts’. Following a complaint, the cybercrime wing of the Hyderabad Police booked a case and initiated an investigation.

According to the police, on January 25, the victim’s brother searched online for distribution agencies of the dry fruit company and then three days later, the victim received a WhatsApp call from a fraudster, who claimed to be a representative of the company’s Sales and Distribution Department claimed that there was no existing dealership in Begum Bazaar and offered the licence for a hefty fee of ₹15 lakh.

When the victim expressed his inability to pay the full amount, the scamster assured him that he would negotiate with his ‘seniors’. Shortly after, the victim was informed that the company had agreed to offer the dealership at a subsidised cost and that the same day, the scammers sent the ‘official terms and conditions’ along with an application form. Initially constrained by financial difficulties, the victim eventually submitted the application form and paid ₹3 lakh as a registration fee. The fraudsters then demanded additional sums of ₹1 lakh as security money and ₹50,000 as an agreement fee, both of which the victim paid.

On February 13, the scammers instructed the businessman to place his first order, which amounted to ₹13.9 lakh. Citing company policy for first-time dealers, they demanded a 50% advance payment. The victim complied and paid ₹4.9 lakh. A week later, on February 20, the victim was informed that a distributor licence agreement needed to be finalised before the order could be dispatched. This came with a further cost of ₹9 lakh, which the victim also paid. On March 17, the victim was told that a distributor bank security fee of ₹4 lakh was necessary for vehicle dispatch. Although initially resistant, the victim was persuaded by promises of a refund with 3% interest and paid the amount.

Further on March 21, when the scammers cited the need for a ₹2 lakh insurance fee covering theft, damage etc. They also claimed that no company vehicles were available and suggested a private vehicle be hired at a cost of ₹1.5 lakh. Again, after some hesitation, the victim gave in, paying a total of ₹3.5 lakh.

On March 24, the scammers contacted the victim one last time, claiming that all documents were ready and the delivery vehicle would be dispatched that day. They asked him to call back for further details. However, his subsequent calls went unanswered. When he attempted to reach them using a different number, someone briefly responded, asking him to call back in 30 minutes. After that, all numbers associated with the fraudsters were switched off.

Published - May 31, 2025 07:06 pm IST