'Idli Guru' Hotel Owner Arrested For Duping Mumbai Businessman, Promising Franchise Deal In Partnership

Mumbai: The Vile Parle Police arrested Kartik Babu Shetty, the owner of the hotel brand 'Idli Guru', for allegedly duping a local businessman through a fraudulent franchise deal.

Shetty had been absconding for nearly 10 months following the registration of a fraud case against him. He is now in police custody and is being interrogated for his involvement in multiple similar scams, Lokmat Times reported.

According to reports quoting police officials, the complainant, Ravi Kamleshwar Pujari, a resident of Vile Parle, first came across the 'Idli Guru' outlet in the Versova-Yari Road area during a visit with his wife Deepa in November 2023. Impressed by the quality and taste of the food, Pujari decided to explore a franchise opportunity and collected the contact details of the owner from the restaurant manager.

Victim Was Sent ₹33.60 Lakh Quote For Franchise Setup

A few days later, Pujari reached out to Kartik Shetty and expressed his interest in opening a franchise outlet. Kartik, who claimed to be a resident of Bengaluru, responded positively and agreed to meet him in Mumbai to discuss the terms. During their meeting, Shetty quoted a total of Rs 33.60 lakh for the franchise, this included Rs 20 lakh as franchise fees, Rs 3.60 lakh towards GST, and Rs 10 lakh for outlet setup costs.

After extensive discussions, an agreement was signed between the two parties. As per the deal, Pujari was to handle operational expenses such as rent, electricity, and employee salaries, while business profits were to be split, 80 per cent for Shetty and 20 per cent for Pujari.

Acting in good faith, Pujari rented a space on Ram Mandir Road in Vile Parle’s Khaugalli area, paying a monthly rent of Rs 76,000 and Rs 3.5 lakh as a security deposit. He also transferred Rs 23.60 lakh to Shetty as part of the franchise deal.

However, Shetty failed to initiate any hotel operations within the promised 60-day period and began giving vague excuses. Frustrated by the delay, Pujari eventually terminated the agreement and demanded a refund, which Shetty flatly refused. Realising he had been scammed, Pujari filed a formal complaint with the Vile Parle Police, who registered a case of cheating and fraud against Shetty.

Accused Had Scammed Other Businessmen Too Promising Franchise

After months of searching, the police arrested Shetty on Saturday. During interrogation, it was revealed that he had pulled off similar scams with other unsuspecting businessmen under the guise of 'Idli Guru' franchises. Investigations are ongoing to uncover the full extent of his fraudulent activities. Shetty has been remanded to police custody for further inquiry.

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