RMP Infotec suffered a severe set back on Tuesday (20-93-2012) after the Andhra Pradesh High Court issued orders not to issue fresh cheques to its distributors. In effect the State's top judiciary has stopped its business which is an open money circulation scheme in the name of selling products and services.
The High Court also issued orders transferring the criminal cases pending investigation in various police stations all over the State to the Economic Offences Wing of CID to continue with the investigation and to accept all further complaints against the fraudulent company.
After heated arguments including that of the counsel of Corporate Frauds Watch, the High Court at one stage was about to short of dismissing of the writ petition. However, The Honourable High Court issued orders not to further issue cheques to its distributors.
The fraudulent company has been issuing cheques to its distributors in the name of commission to the downline members after the members recruited new members in the name of selling products at exorbitant price.
The ban on the issuing of new cheques to the distributors would, in effect, stop the fraudulent company to enroll further new members in the name of selling products and/or services.
Now more criminal cases could be filed against this fraudulent company and the Economic Offences Wing would accept the criminal cases.