The city police have arrested three persons on the charge of trying to cheat people in the name of a multi-level marketing money circulation scheme. A laptop, a projector, a screen, brochures, pamphlets, and some books have been seized from them.
On information, the Ibrahimpatnam police conducted raids on Palagani Hotel on Tuesday and arrested Y. Bala Gangadhar of Miryalaguda in Nalgonda district, Sk. Meera Vali of Kothareddypalem in Guntur district, and Y. Srinivas of Ganganammapeta in Tenali town. They were accused of trapping the gullible people by making them believe that money could be made easily without putting in much hard work.
The police said the arrested persons began their operations under the name of ‘Resource Money Power Pvt. Ltd, Chennai' without getting any licence from any department. They offered huge gifts such as suitcases and ovens if anybody became a member by paying Rs.6,990 to Rs.8,990. The members were lured saying they would get huge commissions if they enrolled more members and made distributors.
They offered fast promotions to those who bring new members. The promotions include executive, silver executive, pearl executive, and so on. Each member was bound to enrol two new members. As this chain of membership enrolment grew wider, there would be a dead-end suddenly when many people would be left cheated, the police said.
West Zone Assistant Commissioner of Police T. Harikrishna said there were many instances of such money circulation companies fleecing the people and most of the affected categories were middle and lower income classes, unemployed youth, and women. People should not get misled by such wrong claims that easy money could be made, he added.
Information on such companies should be immediately furnished to the police control room at ‘100' so that timely action could be taken, Mr. Harikrishna said.