Monday, 8 October 2012

Gemini Techno fleeced Rs. 20 crore in the name of multilevel marketing

Rajahmundry-based Gemini Techno private limited started selling various products under the business model of direct selling a few years back including products like idli stand and other kitchenware material. According to the business model, a person who wants to become a distributor of Gemini Techno has to pay about Rs. 3,000 and he would be given some products and if he enrolls more members into the scheme he would be given a commission of Rs. 200 per membership.
Many people bite the bait and become members. After finding it very difficult to enroll more members into the scheme they started blaming their fate for joining the scheme.
The scheme ran for several years and within a short span of few years, Gemini Techno chief made about Rs. 20 crore. Police filed a criminal case against the company and like all the crooks, the Gemini Techno preferred to file a writ petition in the AP High Court  appealing it to declare its business model legal.
They started the racket once again showing the writ petition copy to the police. Though the High Court did not grant any relief, the police remained silent and did not take any action. The racket continued for a few more months.
After learning that the Gemini Techno filed the writ petition, Corporate Frauds Watch filed an implead petition in the writ petition filed in the AP High Court.
The writ petition reached the Bench in 2011 and Corporate Frauds Watch’s counsel appeared in the court. The division bench comprising Justice Goda Raghuram and Justice Ramesh Ranganathan heard the arguments of the counsel of Gemini Techno.
Counsel of Corporate Frauds Watch waited patiently for his turn to present the arguments. However, the justices kept on shooting questions one after another and the counsel of Gemini Techno faltered to answer their queries. Justice Ramesh Ranganathan asked the last question that the company is selling idli stand and other kitchen appliances but what is techno in it. That was the last straw on the camel's back, and the defense argument collapsed.
The writ petition was dismissed and the police arrested all the directors of the company and confiscated the properties of the company freezing all the bank accounts of Gemini Techno.
That was the end of a multilevel marketing company.

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