In a major crackdown by the Economic Offences Wing of Cyberabad Police, a Rs 1,200 crore fraud money scheme has been busted and cracked down by it.
In a major crackdown by the Economic Offences Wing of Cyberabad Police, a Rs 1,200 crore fraud money scheme has been busted and cracked down by it. According to an Indian Express report, Hisar-based M/S Future Maker Life Care Global Marketing Pvt Ltd, a multi-level marketing company, was running a money circulation scheme. Police have arrested the Chairman and Managing Director of the company and seized Rs 200 crore in the bank accounts of the company.
Cyberabad Commissioner of Police V C Sajjanar was quoted as saying in the report that the company is headquartered at Hisar, Haryana, and registered with the Registrar of companies, New Delhi. He said that the company was formed in 2012 and floated a binary scheme. In the scheme, one person has to enrol two persons, these two will have to enrol two persons each and so on.
According to officials, the company targeted unemployed youth, housewives and retired employees, promising them part-time income. Several people in and around Hyderabad were cheated and looted of crores by the company. The main victims are from Haryana, Delhi, Madhya Pradesh, Maharashtra and Odisha. During the police investigation, money in different bank accounts of the company has been seized. It was found that the company had an account in IndusInd Bank with a balance of Rs 14.78 crore, Bandhan Bank account with Rs 20.47 crore, Axis Bank account with Rs 56.20 crore, HDFC Bank account with Rs 125 crore and a Canara Bank account with Rs 20 crore.
The joining fee of the scheme was Rs 7,500 and the company had promised that it would return Rs 2,500 at the end of every month and the remaining could be utilised to purchase medicines and clothes. According to the officials, the company promised that if a person enrolled two more persons, a commission of Rs 500 would be given as an additional bonus apart from the Rs 2,500 which was credited every month up to 24 months, amounting to Rs 60,000. It was also promised that a person investing Rs 7,500 initially would be getting Rs 60,000 in two years. This particular benefit was apart from the benefit derived from the enrolment of members to the scheme.
According to the officials, Section 3 of Prize Chits and Money Circulation Schemes Banning Act, 1978, makes a person liable if he joins or enrols others into any such scheme.