Fraudsters come up with another money circulation scheme a la Amway

Congratulations to the Warangal police under the able guidance of the star police officer, Viswanath C. Sajjanar who busted another racket. This time it is a computer education company which indulged in money circulation scheme in the name of giving computer education to the youth. The modus operandi is same that of Amway which has been into money circulation scheme in the name of selling products.
On 05.08.2008 basing on a specific complaint, a case has been registered vide Cr.No. 338/08 U/s 385, 420 and 34 of IPC and Sec 4, 5 & 6 r/w 2 (c), 3 of Prize Chits and Money Circulation Scheme (Banning) Act, 1978 of PS Hanamkonda against “eBIZ.com Pvt Ltd.”, Pavan Malhan, Managing Director of eBIZ.com Pvt. Ltd., Ayyappa Swamy, Aditya Bhogaraju, Mohith Manjunath, Rajesh Kumar, Phani Kumar etc.
The complaint reveals that the complainant was trapped by eBIZ.com members and they induced him to become its member. After taking membership he was initially asked to enroll further members to get more commissions. Later on he was harassed mentally in this regard. The complainant further explained about the details of the scheme which involves enrollment of members, commission earned and also the titles given to various members depending on their enrollment.
eBIZ.com Pvt Ltd. has started its business in India from 2001 headed by one Pavan Malhan with its Head Office at Noida, U.P., and started promoting computer educational programme. In the name of computer educational programme, they have schemes which are in the nature of enrollment of members.
To become a member of the scheme, a person has to pay Rs. 7, 585/-. Then the member has to further enroll more members to earn more commission. The enrollment is as per Binary plan.
If the associate sells eBIZ educational programme and web first 3 packages with 1/3:2/3 ratio under him he will get Rs.2000/-, for next 3 sales he will get Rs2000/- with 1/3:2/3 ratio, for another 3 sales he will get another Rs2000/- and this will become a cycle of 9 Sales and the associate will get a total of Rs.6000/- and for the 2nd, 3rd, 4th, 5th cycles of each 9 sales, the associates will get Rs. 3000/- for each cycle. For the 6th cycle of 5 sales the associate will get Rs. 8.000/- and the total sales will become 50 which is also called an ORBIT and the total sum of Rupees earned by the associate will become Rs. 26,000/-. From the 2nd Orbit onwards the associate will earn for 1st, 2nd, 3rd, 4th, 5th cycles of each 9 sales get Rs. 2,500/- each and for the 6th cycle of 5 sales the associate will get Rs. 7,500/- and the total sales become 50 and the earning for the 2nd Orbit will become Rs. 20,000/-. Thus depending upon the enrollment the chain continues and the member continues to get commissions.
Depending upon number of members enrolled, the members are given fancy names like:-
Silver Associate, Gold Associate, Diamond Associate, Diplomat, Silver Diplomat, Gold Diplomat,Diamond Diplomat, Ambassador, Silver Ambassador, Gold Ambassador, Diamond Ambassador, Chairman Circle.
1st Step 3 Sales: one gets Rs.2000 with sales in the ratio of 1/3 : 2/3
2nd Step next 3 Sales one gets Rs.2000/- with sales in the ratio of 1/3 : 2/3
3rd Step next 3 Sales one gets Rs.2000/- with sales in the ratio of 1/3 : 2/3
Thus every member of eBiZ.com Pvt Ltd., tries to enroll new members and thus accumulate sales, orbits so as to enable them to become Sliver Associate and thus go up the ladder to become Diamond Diplomat to Chairman Circle and so on. If he/she fails to get further enrollment, then the member tries to make his own sales to accumulate orbits and be in the rat race.
The members also arrange meetings in star hotels, big hotels with entrance fee for luring and inducing public.
Further people specially the middle class, innocent students are lured into such schemes and thus they contribute money and waste their precious time to such schemes and thereby set up a chain of further contributors, from each of whom the original contributor will get back an amount of money he had initially paid to the scheme and thereby gain financially. Each of the second set of contributor is expected to generate further sets of contributors likewise and gain money. It is financially impossible for such a chain to work endlessly with profit to everybody concerned.
All such schemes finally get broken at some stage, resulting in financial benefit to a few who had joined at the beginning of the scheme and financial loss to a very large number of contributors who had joined the scheme at a later stage. Such schemes mostly work to the detriment of middle class people and innocent students, who invariably look for some short-cut or the other for augmenting their income. Thus the gullible public would have just fallen for the scheme without understanding its non-workability.
In this case further investigation is on.
Alert: Thus the public is once again requested not to fall prey to such Direct Marketing, Multi-level Marketing, Network Marketing, Referral Marketing, Sponsor Marketing, Chain Marketing etc. Such schemes are prohibited under the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.