Father-Son Duo Arrested For Rs 5000 Crore MLM Fraud; Duped 17 Lakh People By Doing This..
Noida based multilevel marketing company, eBIZ.com has allegedly been charged with a financial racket run by its very own Managing Director and his son, the company’s legal advisor. As per the Cyberabad Economic Offences Wing in Telangana, who busted the cheating duo, the director and his son were responsible for duping more than 17 lakh people from across the country and siphoned off more than Rs 5,000 crore.
The Cheating Father-Son Duo
Pawan Malhan, the 62-year-old managing director of a reputed Noida-based firm and his son Hitik Malhan, 31 were busted on Tuesday by the Cyberabad Economic Offences Wing in Telangana, after a complaint of cheating case was registered against the management of eBiz by Mohammed Sharooq a 19-year old degree student from Sanatnagar. Apart from his complaint, three other cases were booked against the firm at various police stations in Cyberabad and investigation was going on.
The duo has allegedly cheated more than 17 lakh people, duping them off more than Rs 5,000 crore. The money circulation company was established in 2001 with Registrars of Companies (ROC) in New Delhi. Pawan Malhan’s wife, Anitha Malhan is a director, along with their son take care of the company’s affairs.
The 62-year-old managing director and his son were taken into custody and the company head office at Noida was sealed. Until now, deposits worth Rs. 398 crore have also been frozen in their multiple bank accounts. The company head office at Noida has also been sealed.
How Did they Dupe People?
So far, four cases have been registered against eBiz.com Pvt Ltd in Cyberabad limits, and there are at least 12 cases in other states, including Andhra Pradesh. The company mainly targeted unemployed youth. Once a new member joins by paying Rs 16,821, he or she gets a login and password to access the website. The company mainly offered e-learning software courses and clothes under the brand name Agamya. After this, the member receives 4% commission if he/she brings other persons to the forum.
Police said eBiz fraud was rampant in Hyderabad, Bengaluru, Chennai, and in the states of Uttar Pradesh, Maharashtra, Goa, and also in Jammu and Kashmir and Delhi. They have also appealed the public to not fall prey to such money-circulation schemes, which mainly target women, retired individuals, students and unemployed youth. The products are just camouflage and the real motive is operating money circulation schemes, which are banned in India.