Cyberabad Cops bust Rs 1,000 Crore Fraud

Multi Level Marketing company frozen

eBiz Fraud

Cyberabad Cops bust Rs 1,000 Crore Fraud, Multi Level Marketing company frozen, Noida based Multi Level Marketing firm, including its two directors, have been frozen for allegedly cheating the public of about Rs 1,000 crore, police said here. Cyberabad Police Earlier, police had registered various cases against Pvt Ltd., at Warangal and Adilabad in Telangana and other cases across the country.

The press note issued by the Cyberabad police read: “ Pvt. Ltd is a Money Circulation company (MLM Company) established in 2001 based in Noida in Uttar Pradesh. It was registered with Registrar of Companies (ROC) in New Delhi. Its Managing Director is Pavan Malhan. His wife Anitha Malhan is a director and his son Hitik Malhan looks after the company affairs.

The racket came to light in the city after degree student S Vivek filed a complaint with the police. The Jagtial resident paid Rs 16,820 to become an eBiz member. When he did not get any returns despite enrolling new customers, he approached the police.  Cyberabad Police Commissioner VC Sajjanar said cases had been registered against the firm in Warangal and Adilabad.

"The eBiz business model is a simple pyramid scheme in which early entrants earn money and as the number of representatives increases, finding more representatives (New Comers) to join becomes difficult or impossible, the release said.

The police added that the person who referred the newcomer to the company would become the representative. The representatives are then asked to enroll three more members in order to receive the money. As per this model, the ones at the top receive larger commissions than the ones at the bottom of the pyramid.

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