A fresh financial scandal has rocked Uttar Pradesh, dragging two Bollywood veterans – Shreyas Talpade and Alok Nath – alongside 22 others into the eye of a multi-crore investment fraud case. The power of celebrity endorsement, and the vulnerability of small investors across India have put the spotlight on predatory schemes. The allegedly fraud has over 500 rural investors and allegedly duped of more than ₹5 crore.
In late October 2025, police in Baghpat, western Uttar Pradesh, registered an FIR against the Loni Urban Multi-State Credit and Thrift Cooperative Society and its representatives, including Shreyas Talpade and Alok Nath, for orchestrating a fraudulent investment scheme. The society attracted hundreds of depositors from Uttar Pradesh and Uttarakhand with the promise that their savings would double in five years. Exploiting the trust of local communities, the company actively campaigned in villages, targeting small investors with enticing recurring deposit (RD), fixed deposit (FD), and savings account schemes.
What set this fraud apart was the use of Bollywood stardust. Both Shreyas Talpade and Alok Nath were appointed as brand ambassadors for the cooperative. Their faces appeared in promotional material and video adverts across social media and public events. Endorsement by such recognized figures created a false sense of security, encouraging more investors to participate.
The company presented itself as a government-registered cooperative under the Ministry of Agriculture and Cooperation, further adding an aura of legitimacy. Agents spread out into rural districts, assuring local people that their investments – sometimes as little as ₹25,000, sometimes over ₹1 lakh – would return double, fueling dreams of easy wealth.
As victims began to invest significant sums, the scheme expanded rapidly. However, in November 2024, the company abruptly ceased operations, shutting down its transaction software and leaving depositors stranded. When investors sought to reclaim their matured deposits, all contact points failed and promoters went missing.
Faced with financial devastation and no recourse, scores of victims filed complaints not just against the company’s managing directors and agents but also named the brand ambassadors, Talpade and Nath, for their alleged complicity in luring people into the trap. Many investors reported threats when they demanded their money back, and several company officials have reportedly fled abroad.
Police have registered the FIR under charges of cheating, criminal intimidation, and violation of the Banning of Unregulated Deposit Schemes Act of 2019. Authorities expect the Economic Offences Wing (EOW) to take over the case for further investigation, with formal notices soon to be issued for all those involved.
The Supreme Court, meanwhile, granted Shreyas Talpade interim protection from arrest in July 2025, as investigations continue to untangle the roles played by each accused.
This case highlights the often-overlooked risks of celebrity involvement in financial promotions. While neither Talpade nor Nath have been proven guilty, their endorsements as ambassadors brought gravitas and an illusion of safety to the scheme. Regulatory experts have for years cautioned against celebrities advertising investment projects without careful due diligence. The incident reignites calls for stricter guidelines and criminal liability where endorsements are found to enable fraudulently marketed products.
The victims of the scam were predominantly rural and semi-urban households, easily swayed by promises of high returns and assurances from familiar faces on TV and in their community halls. With financial literacy still low across such regions, the case serves as a warning about the devastating impact of unchecked financial schemes and the need for stronger investor education and regulatory enforcement.
As the investigation continues, the Baghpat investment fraud case stands as a cautionary tale for both investors and celebrities. It underscores the need for vigilance, skepticism, and responsible endorsements in financial matters. For rural and small investors, trusting only official, regulated sources—and staying skeptical of celebrity-backed schemes—remains essential to avoid falling victim to similar scams in the future.