Money circulation racket busted
Hyderabad, Aug 25 (INN): The North Zone team of Commissioner's Task Force on Thursday arrested three people on the charges of cheating people through money circulation schemes.
The police conducted a surprise raid at Moon Life Team Works (I) Pvt Ltd located at Malakpet and arrested its officials - Podicheti Narayana Chary, Mulka Sambaiah and Kalwa Yadaiah.
Police said the company was carrying out a high profile campaign and luring gullible public with a promise of making them rich over night through money circulation schemes.
Police also seized eight computers, eight cell phones, land documents and Rs. 24,000/- Company's bank accounts having Rs. 22 Lakhs were also frozen.
According to police, the accused started a multi level marketing or money circulation business under the guise of a real estate business. They lure gullible public, especially of middle class, by promising that they could become rich over night by money circulation schemes through attractive captions and enrolled nearly 3800 members into multi level marketing.
The accused used to buy lands at cheap rates on the city outskirts for Rs. 3 lakhs to Rs.5 lakhs per acre. Later the same land by converting it into plots will be sold to the members at higher prices by exaggerating the value of the lands through their schemes i.e 100 sq yrds is for Rs. 1 lakh and 50 sq yards for Rs. 50,000/- though the original value of the plot is only Rs. 10,000/- per 100 sq yards.
Besides this, on reaching different levels in enrolling the new members, the agents used to be rewarded with gifts like Mobile Phones, Laptops, Alto Car and foreign trips based on the pairs enrolled by them.
Police said the company collected nearly Rs. 11 crores from 3,800 members and returned approximately Rs. 5 Crores to the agents as commission and gifts. They neither invested nor did any other business for repayments, but were rotating money among the customers.
Another company, Sri Chandra Farms and Resorts India Limited were the strategic partners of Moon Life Team Works. The money collected by the Moon Life Team Works was diverted in to Sri Chandra Farms.
According to police, efforts are being made to trace all other investments made by the accused persons and also probing into the involvement of the leading agents involved in the racket.
The accused persons were booked under Sec. 420, 406 IPC and Sec 4 & 5 of Prize Chits and Money Circulation (banned) Act 1978 and were handed over along with the seized property to Chaderghat Police Station for further investigation.
News Posted: 25 August, 2011
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