Multi level fraud busted in Hyderabad

 SMTV Desk 2018-09-09 12:16:08  Hyderabad, Multi level marketing, Economic Offences Wing, Rs.1200 crores cheated,
Multi level fraud busted in Hyderabad

Hyderabad: In shocking news, Two people have arrested by the Cyberabad police on Saturday and claimed to have cracked a multi-level marketing money circulation fraud of more than Rs 1,200 crore.The Economic Offences Wing (EOW) of Cyberabad police seized Rs 200 crore, a press release said. "Multi-Level Marketing (MLM) money circulation scheme fraud of more than Rs 1,200 crore cracked," it said.The two allegedly cheated many people through a company headquartered in Haryana, according to the release.The modus operandi of the accused was running a "binary scheme" in which an individual had to enroll two others who in turn would enroll two more leading to a chain, it said. The victims were cheated by being promised commissions and other benefits, it said.The release quoted Section 3 of Prize Chits and Money Circulation Schemes (PCMCS) (Banning) Act, 1978, which says mere joining in such schemes is an offense.The promoters of the scheme are held liable under Section 420 of IPC as the Supreme Court had said enrolment of members in a binary scheme leads to mathematical impossibility and ultimately cheating, it added.