The website http://vishwajyoyhi.biz.aspx was introduced for the first time in Hyderabad by multilevel marketing fraudsters.
The Central Crime Station of Hyderabad City Police on Saturday busted a first of its kind online multi-level marketing racket, and arrested 7 people.
According to the police, 3 persons - Tata Pramod, Nama Ajay Raj and Pinreddy Ravinder Reddy - floated a company called Vishwajyothi Realtor, and started an online MLM website.
The 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://vishwajyoyhi.biz.aspx was unique and introduced for the first time in Hyderabad by multilevel marketing fraudsters. The website was linked up to its 2 bank accounts, and members get money credited directly into their bank accounts.
Thus, the faces of directors were unknown to many investors and promoters, as all transactions were taking place online.
The multilevel marketing that they started spread like wildfire, especially in the districts of Warangal and Karimnagar. Within 3 months, the 3 directors made 11,000 members, having joined more than one scheme.
The membership touched 45,000 IDs, and within 3 months, the core promoters made turnovers of crores of rupees.
According to the bpolice, daily labourers, small-time vendors, farmers and kirana merchants, too, started investing hugely into Vishwabharathi, to become rich overnight.
On receipt of a complaint, a case was registered at the Punjagutta Police Station on 11 August, and due to the magnitude of the offence, it was transferred to the CCS on 19 August.
CCS police then arrested the 7 promoters and seized 5 laptops, net cash of Rs. 3 lakhs and one gold bracelet, and froze their bank accounts, that contained 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 businesses and enlist other members will be prosecuted, being treated as promoters of multilevel marketing. (INN)