City Police bust another MLM racket, 7 held
Hyderabad, Aug 27 (INN): The Central Crime Station of Hyderabad City Police on Saturday busted a first of its kind online multi-level marketing racket and arrested seven people.
According to police, three persons - Tata Pramod, Nama Ajay Raj and Pinreddy Ravinder Reddy floated a company Vishwajyothi Realtor and started an online MLM website. Initial members became active and started promoting multilevel marketing in their areas and further bringing up more and more promoters.
Police say that the website http://vishwajyothi.biz.aspx was unique and introduced for the first time in Hyderabad by multilevel fraudsters. The website was linked up to its two bank accounts and members get money directly into their bank account. Thus, the faces of directors were unknown to many investors and promoters as entire transaction were taking place online.
The multilevel marketing that they started, spread like wildfire, especially in the districts of Warangal and Karimnagar. Within three months through website the three directors have made 11,000 members and some of them joined more than one scheme.
The membership touched to 45,000 IDs and within three months the core promoters did turnovers of crores of rupees. According to police, the daily labourers, small vendors, farmers and Kirana merchants too started investing huge sums into Vishwabharathi to become rich overnight.
On receipt of complaint, a case was registered at the Punjagutta Police Station on Aug 11 and due to the magnitude of offence, it was transferred to the CCS Aug 19. In pursuance of the same, CCS police arrested the seven promoters and seized 5 laptops, net cash of Rs. 3 lakhs, one gold bracelet and frozen their bank accounts containing multilevel deposits of Rs. 29 Lakhs.
The CCS arrested Vangala Surender, Koripally Chokka Rao, Mula Yella Swamy, Veeramaneni Devender Rao, Sunkaraneni Pinakapani, Singa Venkat Raju and Shaik Nagul Meera and they are being sent to judicial remand.
The City Police has warned the general public not to indulge or take part in multilevel marketing in any form. As per law every member who promotes such business and enlist other members also will be prosecuted treating as promoters of multilevel marketing.
News Posted: 27 August, 2011
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