Here's How 2 Indian Restaurants in Colorado Duped Investors of Rs 3.16cr; Lawsuit Filed

New York: Two Indian restaurants, Bombay Clay Oven and Saucy Bombay, located in Colorado in the United States, have been accused of defrauding investors of $380,000 or Rs 3.16 crore, as per media reports. Both restaurants are part of The Bombay Group (TBG), which like many other businesses in the competition, wanted to scale their eateries with other outlets.

As per media reports, the Indian eateries allegedly used deceptive tactics, such as "half-truths and lies," to woo investors into their ambitious plans for their business expansion.

The lawsuit alleges that TBG's owners, Marshall and Rohini Miranda, along with security broker Michael Bissonnette, misled their respective investors by presenting the investments as secure returns which would have lucrative opportunities.

The owners' plan also guaranteed substantial returns, with dividends as high as 2,900 per cent quarterly, the lawsuit added.

However, despite such promises, the sole location of Saucy Bombay closed by the end of 2015, without the knowledge of its investors and the funds continued to flow into TBG's accounts throughout 2015 and 2016.

The suit alleges that those funds were used for operational expenses such as rent and even self-commissions for selling its stock.

Furthermore, by December 2016, the invested capital had dwindled, with no returns coming to the investors.

However, a new Saucy Bombay location opened in 2018, it remained the sole outpost, but the grand franchise failed to materialise it again.