24 Arrested In Connection With Marketing Scam

The Cyberabad police today arrested 24 members of a gang involved in a multi-crore "multi-level" marketing scam. The gang, which ran a Ponzi scheme, had swindled trusting investors of Rs 1,500 crore.

Addressing a press conference on the scam, Cyberabad Commissioner of Police V C Sajjanar said that the gang members had set up a firm called Indus Viva Health Services Private Limited through which they would collect money from their investors.

"The gang would charge each investor a membership fee of Rs 12,500. They would then promise the members that the latter would receive high returns if they brought in other investors. Members would then receive ranks like Star Distributor (Star, Star-250, and Star-500), Ruby executive, Pearl executive, Emerald executive, Sapphire executive, Executive diamond, Executive blue diamond, and Black diamond ambassador. The swindlers were able to collect a total of Rs 1,500 crore by duping over 10 lakh investors in this way," Sajjanar revealed.

"We launched our investigation after receiving a complaint against the company ten days back. So far, we have seized Rs 20 crore from the bank accounts of the accused, and have frozen the accounts. Three government teachers and their wives were also among those involved in the scam. They would take leave from their duty to commit the offences. Though we have arrested 24 people, we are still looking for the kingpin of the scam, the company chairman," he added.

Cases under sections 406 (criminal breach of trust) and 420 (cheating) of the IPC, and sections 4,5,6 r/w 3, 2(C) of Prize Chits and Money Circulation Schemes (Banning) Act (1978), have been registered against the accused.