Multilevel Marketing Scam Busted, Rs 20 Cr Seized, Cheated 10 Lakh Investors, 24 Persons Arrested by Cyberabad Police

Hyderabad, 06 March: CEO, Top executive, among 24 persons of a company Indus Viva, were arrested by the Economic Offences Wing of the Cyberabad police today.

They were arrested for allegedly cheating over 10 lakh investors to the tune of Rs 1,500 crore. The police have also frozen the bank accounts of the company in which around Rs 20 crore has been deposited.

Addressing a press brief Cyberabad Police Commissioner VC Sajjanar said,

  • The gang was running the multi-level marketing scheme illegally and had lured the public through promoters and agents promising high returns on investments. The public were asked to make an investment of Rs. 12,500 to become a member.
  • The company introduced several schemes for the people and lured them into investing money. Those who enrolled were lured with further incentives and bonus offers for introducing more members to the company.
  • It gave different ranks like Star Distributor (Star,
  • The police found that an investor became a member after payment of Rs 12,500 and bought the company’s products. He/she will get a 100-point value and is issued a user ID and password for continuing in the scheme. When he/she enrolled others in the scheme and they paid their membership fee of Rs 12,500 each, then he/she would earn Rs 1,000 as a bonus. To get these benefits, the member has to enroll two other members in the scheme within a week so he/she can get Rs 1,000 as an additional bonus.
  • Star-250, and Star-500), Ruby executive, Pearl executive, Emerald executive, Sapphire executive, Executive diamond, Executive blue diamond, and Black diamond ambassador to its members.
  • Based on a complaint, the police arrested CEO of Indus Viva Health Sciences Private Limited from Bengaluru along with other executives and agents.
  • Two of the suspects identified so far are absconding.

The arrested persons identified as Bengaluru-based CEO Abhilash Thomas (40), COO Prem Kumar (39), vice-president Imdadulla Shariff (41), Director Mandalanen Subramanyam (57), other promoters and distributors, including three government schoolteachers, from Telangana.

As many companies claim to be doing direct selling business and enroll members, the police commissioner said that any scheme involving enrollment of members and Direct Selling/Binary/Networking/Referral Marketing/Joining/Introduction multi-level marketing is nothing but a Money Circulation Scheme and is illegal.

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