Red flags and fake dealership scams

How the scam works

The fraud usually starts with an advert, an SMS, an email or a search result that looks like a famous company's offer. It may use the company's logo and a copied website.

You are asked to pay a registration, processing, security or "refundable" fee. After you pay, the contact stops or new fees are asked.

Official warnings you can read

Petrol and LPG: Indian Oil has said that unknown persons or bogus agencies send fake letters and emails offering LPG distributorships and retail outlet dealerships and demand money. It has also named copied websites. PIB Fact Check has also warned about fake LPG dealership offers.

Amul: Amul's owner, GCMMF, said fake websites used its name to offer Amul parlour franchises and took registration fees. Amul says the process for its parlours is run by GCMMF only.

Mobile towers: The Department of Telecommunications says it does not issue any No Objection Certificate for mobile towers. PIB Fact Check warned in September 2024 against a notice asking for an agreement fee.

Patanjali and Jio: we have not found an official notice that we can link here, so we make no claim. Use the same checks for every brand.

Red flags

Any one of these is a reason to stop and check.

• You are asked to pay to apply, to get a form, or to be shortlisted.
• The payment is to a personal bank account, a wallet or a UPI ID of a person.
• The offer guarantees a fixed monthly income or fast return.
• The email is from a free address such as Gmail, or the website name is slightly different from the real one.
• You are told to decide today or lose the chance.
• The brand will not give a written list of costs, an agreement draft or the names of current franchisees.
• A big brand offers a dealership for almost no checking of you.

Guaranteed returns

No honest brand can promise your profit. Sales depend on your town, your shop and your work. Be careful of words like "assured income" or "no risk".

Ask for the figures in writing and ask who will be responsible if the promise fails.

How to verify a brand

Type the company's website address yourself. Do not click a link from an SMS or advert. Find the franchise or dealership page and the contact details there.

Call the company's head office number given on its official site. Ask if the person who contacted you works there. For oil companies, the area office can confirm a dealership paper.

Check that the brand name is a registered trademark, search the public trade mark records of the Government of India, and look for the company on the Ministry of Corporate Affairs site.

If you have already paid

Call your bank at once and ask it to stop or flag the payment. Report on the national cyber crime portal and on helpline 1930. Keep screenshots, chats, receipts and the account details.

Do not pay any more money to "recover" the first amount. That is a second scam.