Hyderabad city police busted a multilevel marketing racket run by Surat-based Pro Online Marketing Private Limited in Hyderabad on Thursday arresting three persons and seizing Rs. 1.5 lakh in cash and freezing Rs. 2.25 crore in bank accounts.
The police seized three laptops, three computers, 10 hard disks, three cellphones, one card swiping machine from the premises of two franchises of the fraudulent company. The accused persons are Akula Chandramohan, of Tarnaka, Nutanganti Rajender of Hayatnagar, and Puvvada Venkata Lakshmi of Habsiguda.
The modus operandi of the fraudulent company is the same old story. Every member has to pay Rs. 3,000 to become a member who would be given a kit comprising two pairs of trousers and two shirts. The member would be paid Rs. 100 for each enrollment.
The business is purely enrolling members and a money circulation scheme in the guise of selling products. Police found out 69 franchisees working across the country which had already collected crores of rupees. The company offered 'sponsored team commission' based on the number of levels and offered incentives like digital cameras, bikes, foreign trips apart from cash.