Hyderabad: The Cyberabad Economic Offences Wing (EOW) busted another Multi-Level Marketing (MLM) fraud case and arrested M Ravinder, Chief Executive Officer of Sun Pariwar Group of Companies, on charges of attracting customers with colourful schemes and later duping them to the tune of Rs 150 crore in the form of deposits.
Police issued orders to freeze Rs 14 crore in accounts of the group in various banks. Ravinder, a government teacher in the Upper Primary School, Revalli, Siddipet district, had taken leave to get involved in the multi-level marketing business. Earlier, he had worked as a real estate agent with various construction companies, the police said.
Some of the companies he floated were Sun Mutually Aided Thrift and Credit Co-Operative Society Ltd, Methuku Chit Fund Limited, Methuku Ventures Limited, Methuku Herbal Limited and Met Sun Nidhi Limited.
According to police, if one wanted to join the scheme, they had to deposit Rs 1 lakh and the company would then pay Rs 6,000 per month for 25 months, which was Rs 1.5 lakh with the principal amount to be paid in the 26th month.
“The company would also give commission to agents if they achieved the target up to Rs 5 lakh and more. Likewise, agents could join any number of members. If any member joins another in the scheme he too gets commission. Commission goes up depending on the increase in collection of deposits and members,” the officials said.
Ravinder was produced before court and remanded in judicial custody. Investigation was on to identify more associates, the police said.