FIR registered against Bajaj Allianz Life Insurance and Team Life Care Insurance

The Machavaram police has finally registered a case against the giant insurance firm Bajaj Allianz Life Insurance Company Ltd and Team Life Care Insurance (Pvt) ltd after toying with the court order for a week. It may be recalled that the Honourable First Additional Chief Metropolitan Magistrate issued orders on 18-11-2008 taking cognisance of the offences by Bajaj Allianz and Team Life Care for their alleged involvement in money circulation scheme in the name of product sales. While the companies like Amway, Herbalife and a score of others also indulged in money circulation schemes in the name of sale of products, the insurance company and its crony have been into the same offence in the name of sale of insurance policies. Still, the officials of the fraudulent companies defend that theirs is a legal business. Still, they fail to produce any supporting document to that effect. Moreover, they argue that they would permission soon for approval of multilevel marketing system in selling their insurance policies. How ridiculous is their argument. Anyway, we must congratulate them for their honesty for confessing that at present their business is illegal.

The officials and their counsels tried to influence the complainant with compensation appealing him to withdraw the complaint. They could not answer why they are appealing for withdrawal if they think their business legal.
These people know very well that they are into an illegitimate business cheating the gullible people with inducement of easy and quick money and they know very well alrealdy several lakhs of people were cheated in the scheme. Still, they want to continue the illegal business.
It is high time stringent action is initiated against such frauduelnt companies.

Criminal complaint against Bajaj Allianz, Team Life Care Insurance

A criminal complaint was filed against the Bajaj Allianz and its corporate agent, Team Life Care Insurance (P) Ltd in the first additional chief metropolitan magistrate court in Vijayawada. After hearing lengthy argument put forward by advocate and activist M V Shyam Sundar, the Court referred the case to the Machavaram police for thorough investigation.

If one dwells into the details of the complaint, the advocate was approached by a victim who lost almost all his money after he purchased a life insurance policy from an unauthorised agent of Team Life Care Insurance Pvt Ltd. The victim purchased three policies each worth Rs. 5,000 and in turn he got units worth Rs. 1500 for each policy. He was taken aback after looking at the summary statement and approached the agent but did not a satisfactory reply.

After listening to a FM radio speech by Advocate Shyam Sundar, the victim approached him and the advocate suggested to file a criminal complaint against both the companies.

Both the companies indulged in all types of violations while selling insurance policies. No policy should charge more than 40 per cent as charges from the policy amount as per the Insurance Act, 1938. But in this case 70 per cent has gone as premium charges. As per the Section 41 of Insurance Act, 1938, no agent whether Individual or corporate agent should employ sub-agents to sell insurance polices. With the connivance of Bajaj Allianz, the Team Life Care Insurance is indulging in such malpractices.

In depth study shows, actually, the Team Life Care is indulging in more serious crime that is money circulation scheme. It is encouraging the unauthorised sub-agents to enroll two more members each offering commissions. They in turn have to enroll to more members each. This is nothing but money circulation schemes as envisaged in the Honourable High Court of Andhra Pradesh judgement in Amway case.

One has to wait and watch to see what the police are going to do with this criminal case. If history repeats, it will be another GoldQuest case.

Kudos to Sikkim police for public alert against Amway

Congratulations Sikkim police!

The senior superintendent of police of the crime branch CID of Sikkim State police department issued a public alert notice warning the people against joining in the nefarious activities of Amway India Enterprises Ltd which is brazenly involved in the money circulation scheme in the guise of product sales. Here is the full text of the notice for public consumption.

R.O. NO. 735/IPR/PUB/07-08 (I) Dt. 4/2/08.

Crime Branch
State Police Headquarter Department
Gangtok

NOTICE

It is notified for the information of the public in general that the Amway India Enterprises started their business operation in India in May, 1998. It deals with various consumer goods like tooth paste, soaps and other products like Nutralites etc. These products are camouflaged to cover up their money circulation schemes. This company is into the recruitment of members and the sale of products is only incidental to the main activity of recruitment and payment of commission. Through a promise of quick and easy money this company has succeeded in duping the gullible public in India. The activities of this company are akin to money circulation schemes, which in India are expressly banned under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
In the year 2006, a case was registered against Amway and its distributors by CID/Andhra Pradesh on a specific complaint on 24/09/06 vide Crl. Case No. 10/2006 U/S 385/420 IPC and Section 4, 5 & 6 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
The Division Bench of High Court of Andhra Pradesh vide order dated 19/07/2007, delivered a landmark and path breaking judgment holding that the scheme of Amway India Enterprises is nothing but money circulation scheme. Later, Amway challenged the High Court order through Special Leave Petition in the Apex Court of India, which was dismissed on 14/08/2007 by the Supreme Court.
As discovered by CID, E.O.W. Andhra Pradesh Amway India Enterprises is a founder member of Indian direct selling association (IDSA) which is an association of different companies having similar modus operandi purportedly multilevel marketing just as the Amway Scheme. All these companies viz. Avon Beauty Products, Tupperware, Modicare, Oriflame India etc. including Amway India Enterprises are carrying on the business thereby violating the provision of Section 2(C) of Prize Chits and Money Circulation Scheme (Banning) Act, 1978. This view was endorsed by the Apex Court in dismissing against Amway special leave petition.
Thus, the business being carried out and carried on by the above companies by misleading/misguiding the innocent people have appeared to be illegal in the eyes of the law of the land and hence adequate publicity is given to the public in General for their awareness.

Sr. Superintendent of Police
Crime Branch, CID,
Gangtok.
R.O. NO. 729/IPR/PUB/07-08(III) Dt. 5/2/08

Problem is to spot the victim

Gamana, NGO from Suryapet, Nalgonda district responded to our article on Peeshonu. Thank you. Mr Radhakrishna of Gamana lamented that it is very difficult to find a victim and is equally difficult to convince the victim to lodge a complaint with the police. That is our weak point and the fraudsters forte.

We public spirited persons should join hands to fight these maladies. We have to search and find victims and somehow convince them to file a complaint with the police.

These fraudulent companies convince the members to bring in their relatives, friends and even their own family members into the scheme. The crooks' strategy is they never lodge a complaint against their relatives, friends and family members even if they lost money in the scheme. But what we should not forget is that this strategy is destroying the fragile social fabric of our society. People who lost their hard-earned money in the schemes never forgive their relatives, friends and family members and they would never trust them in future.

My dear friend Radhakrishna, do not get disheartened. The future is ours and we will win the game against these fraudsters. We can approach the court under section 190 and 200 of CrPC to file complaints against these fraudulent companies and bring the fraudsters to book.

Keep watching this blog regularly to share views and get new spirits everyday. Better to go through the older posts to get more information and become proactive with increased enthusiasm. Keep smiling and get organised. Keep in touch.

Duck meat racket in Gadval, camouflaged money circulation, unauthorised deposit mobilisation

A racketeer in Gadval town in Mahaboobnagar district launched a money circulation scheme and unauthorised deposit mobilisation. This is a classic case of introducing new product altogether. The fraudster started a company in the name of Duck Development Society. The idea is to purchase ducklings, rear them and sell its meat to the customers. The dubious novelty of the plan, the Society is purchasing ducklings with the money of public inducing them with huge returns within a short span. This is openly flouting the rules of Reserve Bank of India to mobilise deposits and inducing the public with quick and easy money. And the members who introduced more members are offered Rs. 300 per membership.

This type of inducement squarely falls within the description of easy and quick money and attracts the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978.

The recent judgement of the Supreme Court categorically stated that offering easy and quick money is illegal and comes under the mischief of the above Act.

Let us look at the modus operandi of the new fraudster. Every member has to register his name with the society by paying Rs. 3,000 (Now it has gone up to Rs. 5,000). After registration, each member has to pay Rs. 20,000 to enable the society to purchase 500 ducklings at the rate of Rs. 24 each. And now the Society rears the ducklings with the rest of the Rs. 8,000. After ducklings grew and become ducks, its meat would be sold to the bulk customers at the rate of Rs. 500 per kg. Any clue, who would purchase duck meat for Rs. 500 per kg. That is the bait.

Now there is a big queue before the office of the society to become members.

It is said that the Society had already collected money from 5,000 members. Reports said that a farmer sold his property and paid Rs. 40 lakh to the society to become billionaire overnight.

Before people and the police realised what happened the organisers of the society would become billionaire and may vanish too.

Some youth who smelled rat with the scheme contacted this blogger and informed about the racket. They said that they had approached the police but they did not entertain their complaint.

Police have yet to detect the racket behind this big fraud. What is funny is that they have yet to identify the purchaser who buys duck meat for Rs. 500 per kg.

Medak police bust Peeshonu money circulation scheme

The Medak police, headed by Mr Siddhaiah, its Deputy Superintendent of Police, busted a money circulation scheme and arrested one P Saidulu, who had already amassed several crores of rupees. They had seized Rs. 2.9 crore from their possession.

The modus operandi of these fraudsters is similar to that of any previous crooks. Peculiarly the accused named the company after a Biblical river Peeshonu. It is thus named propably to showcase that the organisers are very regligious people.

The Peeshonu, which started selling products of various hues soon turned it into an open money circulation scheme. Like Amway, Saidulu also started selling products which is the camouflage for their money circulation scheme. Soon Peeshonu was converted into an open money circulation scheme in which they collected Rs. 1000 with the promise of repaying Rs. 4000 in 20 months. People thronged their office and stood in long queues to pay the amount. It is believed that the organisers of Peeshonu collected several crores of rupees.

Police faced the perennial problem of finding a victim to lodge a criminal complaint with the company. Had the police known that the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, conferred upon them a right to raid such premises even on a mere suspicion, they would have gone proactive well before.

Anyway, better late than never. The police have busted the money circulation scheme and arrested the organisers. They had also seized Rs. 2.9 crore from the possession of Saidulu.

Let us hope Police officials of other areas and all over the country became proactive and acted upon these fraudulent schemes.