Hyderabad Businessman Loses ₹1.7 Crore in Fake Snack Food Scam

In a significant case of fraud, a businessman from Noorkhan Bazar, Hyderabad, has reported being defrauded of nearly ₹1.7 crore (approximately $205,000) by a purported manufacturer of snack foods. The alleged perpetrator, Abhishek Avula, lured Syed Shah Hamed Hussain Sabri into a false business partnership, claiming to operate a reputable namkeen and paan masala enterprise. This incident, which has resulted in a criminal investigation, highlights the vulnerabilities of entrepreneurs in the rapidly growing food industry in India.

The fraud came to light when Sabri filed a complaint with the Hyderabad Central Crime Station (CCS) on July 18, 2025. According to his statement, he was convinced by Avula's claims of a successful family-run business, supported by an online presence featuring numerous positive reviews and YouTube testimonials. Sabri formed a partnership with Avula in September 2024, transferring a total of ₹1.69 crore between October and December of the same year, purportedly for the purchase of business machinery and raw materials.

However, after the financial transactions were completed, Avula allegedly became uncontactable, leading Sabri to investigate further. His inquiries revealed a troubling pattern; Avula had reportedly defrauded multiple individuals under similar pretenses across several cities, including Bengaluru and Chennai.

The CCS police confirmed that they have initiated a manhunt for Avula, who is currently absconding. A police spokesperson stated, "We have prima facie evidence of substantial amounts being transferred to a company operated by the accused. Efforts are ongoing to trace and apprehend him." The case has been registered under the relevant sections of the Indian Penal Code, including criminal breach of trust and cheating.

This incident raises important questions regarding the security of investments in the food sector, which has seen rapid expansion in recent years. According to the Food and Agriculture Organization (FAO), the global snack food market is expected to reach $1 trillion by 2025, driven by changing consumer preferences and the increasing demand for convenience foods. However, the rise in popularity has also attracted unscrupulous individuals seeking to exploit unsuspecting investors.

Experts emphasize the need for better regulatory frameworks and investor education to protect against such scams. Dr. Anjali Mehta, a Professor of Business Ethics at the Indian Institute of Management (IIM) Bangalore, noted, "The rapid growth of the snack food industry has created opportunities for fraudsters. Investors must conduct thorough due diligence before entering partnerships."

The government has been urged to enhance oversight in the food manufacturing sector to prevent similar incidents in the future. As this investigation unfolds, the implications of such fraudulent practices could have lasting effects on the confidence of entrepreneurs within the Indian food industry.

This case serves not only as a warning but also as a reminder of the importance of vigilance in business dealings, particularly in an industry that is only expected to grow in the coming years. The CCS police's ongoing investigation may reveal more about Avula's activities and contribute to the broader discourse on safeguarding the interests of investors in emerging markets.