Mumbai: Founder of a popular South Indian food chain has approached the Bombay High Court seeking to quash an FIR lodged against him by the Vile Parle police, alleging cheating and criminal breach of trust in a franchise deal. Shetty claims the complaint is based on “false allegations and concocted stories” and is an abuse of the legal process.
According to his petition filed by Karthik Shetty, founder of Idli Guru, which has 35 outlets in Bengaluru and three in Mumbai, the FIR against him is filed to harass him and is a concocted story.
Franchise Fee Paid, Outlet Never Opened
In November 2023, complainant Ravi Kalmeshwar Pujari and his wife dined at the brand’s Yari Road outlet and later expressed interest in acquiring 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 on November 29, 2023, and Rs 13.6 lakh on December 22, 2023, to Shetty’s firm, Mankar Foods and Retail. A franchise agreement was signed on December 15, 2023, with Pujari’s daughters named as franchisees. In January 2024, Pujari rented a Vile Parle property for the outlet, paying a deposit of Rs 3.05 lakh.
The business, however, never took off. Pujari later discovered that Shetty had been arrested in Bengaluru over similar franchise disputes. Although the Karnataka High Court had held those matters to be civil in nature, Pujari chose to withdraw from the arrangement.
Shetty maintains he acted in good faith, even issuing two cheques to Pujari with an assurance of payment after certain contractual terms were met. He alleges that despite this, Pujari lodged an FIR.
Shetty’s anticipatory bail pleas were rejected by the Dindoshi sessions court in September 2024, the High Court in November 2024, and the Supreme Court in January 2025.
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Petition Argues Contractual, Not Criminal Matter
The petition urges the High Court to quash the FIR, arguing that the dispute is contractual and lacks the ingredients of a criminal offence. It also seeks interim relief, including a stay on investigation, protection from arrest, and a direction to prevent the police from filing a chargesheet without court permission.
