Hyderabad Startup Scam: Rs 24.3 Crore Fraud Busted by CCS, Two Arrested
In one of the city’s largest tech-related financial frauds in recent years, Hyderabad’s Central Crime Station (CCS) has busted a Rs 24.3 crore investment scam and arrested two individuals, including the founder of a fake startup.
Hyderabad: In one of the city’s largest tech-related financial frauds in recent years, Hyderabad’s Central Crime Station (CCS) has busted a Rs 24.3 crore investment scam and arrested two individuals, including the founder of a fake startup.
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The accused, Mukesh Chowdhary (33), founder of the so-called online grocery platform Urban Market, and Amit Kumar Pilania (31), a Pune-based businessman, were arrested on May 30 from Malakpet. The duo allegedly lured hundreds of investors with fake promises of high returns by presenting a fabricated business model.
Investor Turns Accused
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Initially, Pilania filed a complaint in March 2024, claiming Chowdhary used his name and forced him to invest Rs 15 lakh. However, further investigation revealed that Pilania was also involved in the scam. Financial records and corporate filings showed clear links between both men, confirming their joint involvement in the fraudulent operation.
Bogus Business Model Using Startup Branding
From 2023 to 2024, the accused promoted Urban Market as a fast-growing online grocery startup. Through the Urban Market app, they attracted investors by showing inflated projections and false operations. In reality, the business existed only on paper.
Legal Action and Criminal Charges
The CCS re-registered the case on April 27 under multiple sections of the Indian Penal Code, including:
- Section 417 (cheating),
- Section 420 (cheating and dishonestly inducing delivery of property),
- Section 506 (criminal intimidation).
They also invoked Section 5 of the Telangana Protection of Depositors of Financial Establishments Act, given the scale of public investment involved. Both accused were remanded to judicial custody on May 31.
Ongoing Investigation into Financial Network
Authorities are now tracking the money trail and identifying additional accomplices. Several genuine victims have already come forward, and police are encouraging more affected individuals to file complaints.
“This is a case of deliberate financial deception under the guise of a tech startup. We’re treating it as a serious white-collar crime,” said a senior CCS official.
The case raises concerns about investor awareness, due diligence, and regulatory oversight in India’s fast-growing startup ecosystem.
