The Economic Offences Wing of Cyberabad Police on Saturday said it has cracked a Rs 1,200-crore fraud by a Hisar-based multi-level marketing company which ran a money circulation scheme. Police said it has arrested the Chairman and Managing Director of M/s Future Maker Life Care Global Marketing Pvt Ltd, Radhe Shyam, and a director of the firm, Surender Singh, and seized Rs 200 crore in the bank accounts of the company.
Cyberabad Commissioner of Police V C Sajjanar said the company is headquartered at Hisar, Haryana, and registered with the Registrar of Companies, New Delhi. He said Radhe Shyam, who has earlier worked with multi-level marketing companies, formed his own company in 2012 and floated a binary scheme. In a binary scheme, one person has to enrol two persons; these two will have to enrol two persons each and so on.
The joining fee of the scheme was Rs 7,500 and it was promised that Rs 2,500 would be returned at the end of every month after joining and the remaining could be utilised to purchase clothes and medicines. “The company promised that if a person enrolled two more persons, a commission of Rs 500 would be given as an additional bonus apart from the Rs 2,500 that is credited every month up to 24 months — amounting to Rs 60,000. It was promised that a person investing Rs 7,500 initially would be getting Rs 60,000 in two years. This benefit is apart from the benefit derived from enrolment of members to the scheme. Depending upon the number of persons enrolled, the commission promised by the company ranged from Rs 5,000 to Rs 1 crore,” an official of the EOW of Cyberabad Police said.
Officials said the company and its members targeted unemployed youth, housewives and retired employees, promising them part-time income. “It has come to our notice that several people in and around Hyderabad have been cheated and looted of crores by the company,” an official said.
The main victims, officials said, are from Haryana, Delhi, Madhya Pradesh, Maharashtra and Odisha. During the investigation, money in the bank accounts of the company has been seized. It was found that the company had an account in IndusInd Bank with a balance of Rs 14.78 crore, a Bandhan Bank account with Rs 20.47 crore, an Axis Bank account with Rs 56.20 crore, an HDFC Bank account with Rs 125 crore and a Canara Bank account with Rs 20 crore.
Officials said Section 3 of Prize Chits and Money Circulation Schemes Banning Act, 1978, makes a person liable if he joins or enrols others into any such scheme. Just joining such a scheme is an offence under this Act, an official said.
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