Jawed Habib Crypto Fraud: ₹7 Crore FLC Coin Scam Probe, Lookout Notice Issued

• The Anatomy of the Alleged FLC Crypto Scheme

• ⁠Key Accused and Official Police Action in Habib Case

•⁠ Legal Framework: IPC 420, 506 in Sambhal Crypto Case

Celebrity hairstylist Jawed Habib, his wife, son, and associates are under investigation for an alleged ₹7 crore cryptocurrency fraud linked to Follicle Global Company (FLC). The company reportedly lured investors with promises of 50–75% returns on Bitcoin investments. Sambhal Police have filed 20–23 FIRs under IPC sections 420 and 506, issued lookout notices, and warned of property seizure if refunds are not made.

Sprouts News Investigation Team (SIT) delves into the allegations against celebrity hairstylist Jawed Habib, his family, and their associates. They face multiple FIRs in a cryptocurrency investment scandal. This case involves serious accusations of cheating and criminal intimidation. Authorities are investigating a fraud estimated between ₹5 to ₹7 crore.

Police have issued lookout notices for the Habib family. Their properties could be seized if they fail to return the investors’ money. The scandal centers on a company named Follicle Global Company (FLC).

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The Anatomy of the Alleged FLC Crypto Scheme

The scheme promised exceptionally high returns on cryptocurrency investments. Follicle Global Company (FLC) launched an “FLC coin” for this purpose. Investors were assured the coin’s value would appreciate significantly over time.

Police state the scheme was presented with a complex investment structure. It featured promises of 50% to 75% annual returns on Bitcoin purchases. An event at Sambhal’s Royal Palace Venkat Hall in 2023 attracted around 150 potential investors.

Individual investments ranged from ₹5 to ₹7 lakh. The total fraud is officially estimated at ₹5-7 crore, affecting at least 38 identified victims. Some reports suggest over 400 people were defrauded.

Key Accused and Official Police Action

Celebrity hairstylist Jawed Habib is the primary accused. His wife, son Anos/Anas Habib, and associate Saif-ul-Hasan/Saifullah Khan are also named. Police describe the operation as functioning like an “organised gang”.

Authorities have registered 21 to 23 FIRs so far. The cases are under IPC Sections 420 (cheating) and 506 (criminal intimidation). A lookout notice has been issued to prevent the accused from leaving India.

Sambhal police are tracing assets and bank accounts in Delhi and Mumbai. Properties may be seized under the Bharatiya Nyaya Sanhita if investors are not repaid. The scam exploited trust built through Habib’s celebrity status.

The Defense and Investor Allegations

Habib’s lawyer firmly denies any business or financial ties to FLC. Advocate Pawan Kumar stated Habib only attended one FLC event as a chief guest promoting hair and beauty. He claims no FIRs are registered in Jawed Habib’s name.

A public notice was issued in January 2023 disassociating Habib from FLC. The defense presented this notice as proof of prior clarification. Habib’s brother, Imran, responded that the law should take its course.

Investor testimonies reveal promises of ₹35,000 monthly returns. One investor, Mohd Hilal, invested ₹4.59 lakh for his sister’s wedding. The company shut down operations when investors sought repayment or refunds.

Also Read: CCI Dismisses Complaint Against Nestlé’s Maggi Sauce Plant in Goa.

Understanding the Legal Framework

Sections 420 and 506 of the Indian Penal Code form the core charges. Section 420 addresses cheating and dishonestly inducing delivery of property. Section 506 pertains to criminal intimidation, involving threats of injury.

The use of criminal intimidation is a serious aggravating factor. Investors allegedly faced threats when asking for their money back. This transforms a financial cheating case into one involving fear and coercion.

Property seizure is being pursued under new legal provisions. Authorities are invoking Section 107 of the Bharatiya Nyaya Sanhita (BNS). This allows for asset attachment to recover defrauded funds for victims.

Sprouts News Analysis

This case highlights the risks of high-return investment schemes that leverage celebrity influence. The police’s application of the Gangster Act and BNS provisions shows the seriousness with which authorities are treating this alleged “multi-layered fraud”. The ongoing investigation will scrutinize financial trails and fund transfers to other companies.

The key challenge for investigators will be establishing a direct provable link between the accused and the company’s financial operations. The defense’s narrative of a mere brand association, countered by the scale of the alleged scheme, forms the core of this legal battle.

The “Spitting” Controversy of 2022

In January 2022, a video from a hairstyling seminar in Muzaffarnagar, Uttar Pradesh, went viral on social media. In the video, Habib was seen spitting on a woman’s hair while demonstrating a hairstyle.

The Incident: Habib was heard telling the audience, “If there is a shortage of water, use saliva,” and jokingly added that his spit was “very effective”.

Legal Action: An FIR was filed against him by the woman, Pooja Gupta, at the Mansurpur Police Station. He was booked under Section 355 of the IPC (assault or criminal force with intent to dishonour a person) and the Epidemic Diseases Act.

Public and Institutional Backlash: The video sparked widespread disgust and protests. The National Commission for Women (NCW) intervened, asking UP police to probe the incident and stating it violated COVID-19 guidelines.

⁠Apology: Habib later issued a public apology on social media, explaining he was trying to add humor to the long workshop and apologized if his actions had hurt anyone.