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MLM scam: Juicy perks used as bait

Incentives like holiday trips to tourist places in India and abroad, fancy cars or cash were being promised

By Telangana Today

Published Date - 7 March 2021, 12:36 AM

MLM scam: Juicy perks used as bait — Cyberabad Police Commissioner VC Sajjanar examining the seized material.

Hyderabad: Holiday trips to Dubai or Goa, or if you are lucky enough, all the way to South Africa, maybe a Mercedes Benz and loads of cash – the carrots dangled in front of those enrolling themselves for the latest multi-level marketing (MLM) scam busted by the Cyberabad Police were really juicy ones.

The lucrative incentives, including vacations in different countries, were for getting new members to join the scheme.

“The company fixed a different perk for every rank and the ranks were given depending upon the number of new members admitted or introduced to the company,” Cyberabad Police Commissioner VC Sajjanar said.

Those interested in joining were asked to become members by paying Rs 12,500 and to buy a few products that could be sold in the market for which they would get a 100 point value. There was another scheme where a new member would be asked to pay Rs 1.5 lakh for joining and on enrolment, would be given products worth Rs 25,000 free of cost.

There were different schemes like the Business Opening Bonus Scheme, Team Bonus, President Club Member Scheme and Rank Maintenance Bonus Scheme, to mention a few.
People who joined the schemes were asked to start doing business by enrolling known persons or others into it in a left and right binary system and earn commissions according to their investment, the Commissioner said.

The company had its own production unit called Olive Life Sciences at Nelamangala, Bengaluru, and claimed the products were health, beauty and dietary products, Sajjanar said, adding the police were probing the racket further and more arrests would be made if any new names came up during the investigation.