Sajeev N. Nair, senior agent of MonaVie, a multi-level marketing company, who was arrested from here on Friday was remanded to Kozhikode district jail on Saturday.
The Crime Branch (Economic Offences wing), Kozhikode, arrested Sajeev and searched the offices of MonaVie here on Friday.
Sajeev’s office and residence were searched by the Crime Branch team led by P.A. Valsan on Saturday.
During the past eight months, the accused earned incentive to the tune of Rs.2 crore, while the company did business of nearly Rs.12 crore during this period.
Sources in the police said that healthcare products and juices marketed through the network were exorbitantly priced, as a 750 ml fruit juice being priced at Rs.2,250, and thus luring the clients to bring in more people to earn incentives.
The accused was earlier with Amway before moving to MonaVie, which is learnt to be manufacture and distribute healthcare products through multi-level marketing.
The company’s activities have been under observation of the Crime Branch and cases were registered in Kozhikode and Palakkad for violation of the Prize Chits and Money Circulation Schemes (Banning) Act.
The Crime Branch team searched the company’s office at Palarivattom and sealed its godown, which is learnt to have had materials worth around Rs.3.5 crore. Details about the network would be learnt only after going through the computers seized from the office and tracking the banking details, police sources said.
The company has customers across the State, the police said.
Sajeev was produced before the Judicial First Class Magistrate-III, Kozhikode, and remanded.
More arrests would be made soon, police sources said.