24 held for duping over 10 lakh people for ₹1,500 crore

Cyberabad Commissioner of Police V.C. Sajjanar addressing a press conference on the multi-level marketing fraud in Hyderabad on Saturday.  

Twenty-four persons, including three government school teachers from Telangana, associated with Indus Viva (IndusViva HealthSciences Pvt. Ltd.), a ₹1,500 crore multi-level marketing business with over 10 lakh members across the country, were arrested by the Cyberabad Commissionerate’s Economic Offences Wing here on Saturday. Over ₹20 crore in various bank accounts were frozen.

Commissioner of Police V.C. Sajjanar said that the arrested include Indus Viva’s CEO Abhilash Thomas (40), COO Prem Kumar (39), director Mandalanen Subramanyam (57) and government teachers, Mulugu Venkatesh (45) from Yadagirigutta, Kasani Shesha Rao (47) from Khammam and Manepu Hari Prasad (40) from Miryalaguda. The government teachers availed long leaves from their service to promote the MLM trade and were earning more than ₹10 lakh per month. Their wives were also taken into custody.

Based on the complaint lodged by a victim, Gachibowli police registered a case against the firm on February 20 and launched a probe.

The victim told the police that he was cheated by the company that promoted its products like coffee and juice by offering attractive income. He got attracted to the schemes and invested ₹12,500 in Indus Viva through his promoters Hari Prasad and Rajabanoth. “The complainant didn’t receive any commission on his investment as promised by promoters. Later, he realised that he was cheated and approached police,” Mr. Sajjanar said.

He said that the scheme of the company was to earn money by enrolling members in Indus Viva Plan and Compensation Plan. To become a member, one has to pay ₹12,500 and buy their products and then, they will get 100 point value. Then he/she would be issued a user ID and password for continuing the scheme. More than one lakh people were duped from Telangana.

“Thus, the member has to enrol others with one person to the left and one person to the right by paying ₹12,500 each, and then, would earn ₹1,000 as a bonus. To get these benefits, the member (who already joined the company scheme/business) has to enrol two other members in the scheme and within a week he can get ₹1,000 as an additional bonus. Thus, the member has to enrol more members to earn money,” the commissioner said.

The accused company also offered a President Club Member (PCM), which attracts a lot of people. “One can join PCM by paying ₹1.5 lakh and the company would provide 50 products besides giving products worth ₹25,000 free. The organisers say that a person who joins PCM could get an opportunity to dine with the CEO of the company in Bengaluru,” the officer said.

Depending on the enrolling of members into the business, the promoters would get ruby, sapphire, star, black diamond ranks. Every year, the company conducts a star summit programme with the company employees, who earn ₹1 lakh and above as commission and send them to foreign trips as well. “This business is a family business, if a wife becomes a member then automatically the husband would be a member and vice versa,” the officer said.

He said that the company has its own production unit ‘Olive Life Sciences’ in Bengaluru for health, beauty, and dietary products, which do not have approval by any government agency.

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Printable version | Apr 22, 2021 8:18:39 PM | https://www.thehindu.com/news/cities/Hyderabad/24-held-for-duping-over-10-lakh-people-for-1500-crore/article34008972.ece

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