The founder of a well-known South Indian food chain, Karthik Shetty, has approached the Bombay High Court seeking to quash an FIR filed against him by the Vile Parle police. The FIR accuses him of cheating and criminal breach of trust related to a franchise deal. Shetty, who runs the Idli Guru chain with 35 outlets in Bengaluru and three in Mumbai, claims that the allegations are baseless and fabricated, aimed at harassing him and abusing the legal system.
The case dates back to November 2023, when the complainant, Ravi Kalmeshwar Pujari, along with his wife, visited Idli Guru's Yari Road outlet and later expressed interest in purchasing a franchise. Shetty allegedly quoted a franchise fee of Rs 20 lakh plus GST, along with a Rs 10,000 outlet ID fee. Pujari transferred Rs 10 lakh to Shetty's company, Mankar Foods and Retail, on November 29, 2023, followed by another Rs 13.6 lakh on December 22, 2023. A franchise agreement was signed on December 15, 2023, listing Pujari's daughters as the franchisees. Pujari then rented a property in Vile Parle for the outlet, paying a deposit of Rs 3.05 lakh.
However, the business never materialized. Pujari later learned that Shetty had previously been arrested in Bengaluru for similar franchise disputes. Although the Karnataka High Court had ruled those matters as civil in nature, Pujari chose to withdraw from the arrangement. Shetty insists that he acted in good faith, even issuing two cheques to Pujari, with the assurance of payment once certain terms of the contract were met. Despite this, Pujari filed an FIR.
Shetty's anticipatory bail applications were rejected by the Dindoshi sessions court in September 2024, the Bombay High Court in November 2024, and the Supreme Court in January 2025.