india

Updated: Sep 08, 2018 21:00 IST

The Cyberabad police in Hyderabad on Saturday busted a major multi-level marketing money circulation fraud worth Rs 1,200 crore.

Following a tip off, the Economic Offences wing of the Cyberabad police arrested two key suspects -- Radhe Shyam and Surender Singh, belonging to Hissar in Haryana and seized Rs 200 crore from them.

According to Cyberabad Police Commissioner V C Sajjanar, the duo allegedly set up an investment company by name Future Maker Life Care Global Marketing Pvt. Ltd and registered it with Registrar of Companies (ROC), New Delhi. They previously worked in various companies like Goodway, RCM (Right Connect Marketing) companies and other similar companies.

Sajjanar said the modus operandi of the fraud adopted by Shyam and Singh was trap gullible people with a promise of high part-time income. They primarily targeted youngsters, homemakers and retired employees. “It has come to notice that several people in and around Hyderabad have been cheated and looted crores of rupees by the company,” he said.

They floated a binary scheme – which meant each person joining the scheme should enroll two persons each. In turn, these two persons would enroll two others each, so the chain continued. A person who intends to join the scheme should pay Rs.7,500 as joining fee and the promise was that they would get a commission of Rs 500 for admitting two more new members apart from a credit of Rs 2,500 every month for two years.

“Through the scheme, they promised that each member joining the scheme would end up getting Rs 60,000 in two years for an investment of just Rs 7,500. The company also prescribed ten different levels for the investors which would govern the profits they earn from the company, the more enrollers they bring to the company, the more profit they would earn,” he said.

Apart from Hyderabad, the accused also lured victims from Haryana, Delhi, Madhya Pradesh, Maharashtra, Odisha and others states. An amount of Rs 200 crores was seized from them deposited in various banks such as IndusInd Bank, Bandhan Bank, Axis Bank, HDFC and Canara Bank. The accounts in these banks have also been seized.

“Further investigation is on to verify the quantum of cheating,” the commissioner said.