GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Cyberabad Cops Bust Haryana-based MLM Fraud Worth Rs 1,200 Crore, Arrest Two

The 'modus operandi' of the accused was running a "binary scheme" in which an individual had to enrol two others who in turn would enrol two more leading to a chain. The victims were cheated by being promised commissions and other benefits.

PTI

Updated:September 8, 2018, 10:40 PM IST
facebookTwittergoogleskypewhatsapp
Cyberabad Cops Bust Haryana-based MLM Fraud Worth Rs 1,200 Crore, Arrest Two
Image for representation.
Loading...
Hyderabad: The Cyberabad police on Saturday claimed to have cracked a multi-level marketing money circulation fraud of more than Rs 1,200 crore with the arrest of two people.

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 enrol two others who in turn would enrol 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 offence.

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.
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp

Live TV

Loading...
Loading...