Monday , August 15 2022

Fraudulent MLM Scheme “eBiz” Busted by Cyberabad Police

Hyderabad, March 12 (PMI): A case of cheating and money circulation by  was busted by the sleuths of Cyberabad Police,  in which one person was arrested under the provisions  of Prize Chits and Money Circulation Schemes (Banning) Act 1978, following a  complaint by  Samalla Vivek,  Degree 2nd year Student, R/o Kundanbagh. Earlier two cases were registered against this company at Warangal and Adilabad which are under investigation. It is reliably learnt that cases have also been registered against this company all over the country, the Commissioner of Police v c sajjanar said in a press conferance today Pvt. Ltd is a Money Circulation company (MLM Company) established in 2001 based at Noida in Uttar Pradesh.  Its Managing Director is Pavan Malhan. His wife Anitha Malhan is director and his son Hitik Malhan looks after the company affairs. The Company has got around seven  lakh representatives as its members and the amount of cheating was  to the tune of more than Rs.1000 crores.  promoters give motivational lectures to the public especially targeting students and unemployed youth stating that there is a business opportunity project which will yield huge profits to them. Once the customer joins i.e., absolutely by paying through DD to the company account through his/her upliner/ Introducer person, an User name and Password will be generated. Their main focus is to enroll students. 
      At first the promoters say to the new comers that there are various business opportunities to earn easy and quick money along with e-learning projects. The promoters trap the new comers (students) with sweet words stating that they will be a part of the eBiz Kingdom where they can build their own future. They say that if the new comers who paid money don’t like eBiz business packages, they can claim their refund within a month. But in fact the promoters will drag the one month period by giving motivational classes, training sessions and also providing books  to the new comers and tell them to read all the books to gain knowledge over the business. Once the new comer joins into the eBiz Business by paying money through a referrer/ promoter he becomes Representative. After paying the money the new comer gets some products/e-learning courses/holiday package and the promoter gets commission. The promoter then says to the Representatives that to get money he/she has to enroll three other members in the ratio of 2:1 or 1:2 in left and right legs and they in turn join three each new comers. As the number of persons increases down the line the upliners get more money as commissions.
The scheme is rampant in Hydedrabad, Bangalore, Chennai and many states in the country.  Hitak Malhan, son of Pawan Malhan,  and Anitha Malhan were arrested in the case and the office of eBiz at Noida was sealed.  A sum of Rs.70.5 crore was freezed in Bank account of the company, its directors and accused persons. 
            The Commissioner once again requested the public not to look for easy or quick money.  There is no short cut to earn easy money, he added

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