Hyderabad: Ten lakh people, Rs 1,500 crore. That is the initial guesstimate of the victim and loss of the latest multilevel marketing scam busted by the Economic Offences Wing (EoW) of the Cyberabad Police.
At the centre of the controversial MLM scheme is a Bengaluru-based firm, Indusviva Health Sciences Private Limited, the CEO of which was arrested along with 23 other persons on Saturday. The firm was reportedly flouting norms under the Prize Chits and Money Circulation Schemes (Banning) Act.
The police estimate around 10 lakh people were cheated to the tune of Rs 1,500 crore by the company, the bank accounts of which have been frozen now. These accounts had deposits worth around Rs 20 crore.
Announcing the arrests, Cyberabad Police Commissioner VC Sajjanar said the gang was running an illegal multi-level marketing scheme and had lured people through promoters and agents promising high returns on investments. The victims were asked to deposit Rs 12,500 to become a member.
“The company introduced several schemes for the people and lured them into investing money. Those who enrolled were lured with further incentives and bonus offers for introducing more members to the company,” Sajjanar said.
The company gave different ranks like Star Distributor, Ruby Executive, Pearl Executive and Black Diamond Ambassador, to mention a few, to its members. Based on complaints from victims who lost their money, the police investigated the scam and arrested Abhilash Thomas, CEO of the firm from Bengaluru, along with 23 of his executives and agents. Two of the suspects are absconding, police said, and added that the number of victims and amount of money swindled likely to go even further up.
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