DGP issues orders to register FIRs against frauduelnt companies

Office of the
Director General of Police
Andhra Pradesh, Hyderabad

R.C. No. 6288/Compts-2008

Memorandum

Sub:- Non-Registration; of information of cognisable offence of Money Circulation Schemes by the Police Officers - Request to issue orders to all SHOs in the State to register the FIRs on the information of Money Circulation Schemes - Regarding.
Ref:- Govt Memo No. 6344/P.S./Genl.B/A2//08-1, Home(Genl.B) Department dated18.12.2008 On Representation of Sri M V Syama Sundar for Corporate Frauds Watch Vijayawada City dt. 08.11.2008
******

A copy of reference cited along with enclosures is sent herewith for taking necessarya ction in the matter.

Encl:- (As Above)

Sd/- S V Ramana Murthy, I.P.S.
For Director General of Police

To
All Commissioners of Police
All Superintendents of Police, including Railways


This is the full text of the Memorandum issued by the Director General of Police, Hyderabad.

Andhra Pradesh DGP orders registration of cases against money circulation schemes

Kudos to Shri Ajayendra Pyol, Home Secretary and Director General of Police Shri Shyam Sundar Prasad Yadav for responding positively and issuing orders to all superintendents of police and commissioners of police in the State to give directions to all SHOs to register cases against money circulation schemes.

It is apt to recall here that Corporate Frauds Watch represented the issue to the Director General of Police to direct the station house officers (SHOs) to register cases against money circulation schemes whenever they are approached by the complainants.

It has been bitter experience of the activists all over the State to be spurned by the police officers when they approach them to register a case against the fraudulent companies which are indulging in money circulation schemes in the guise of sale of products, services et al. The activists have to approach the criminal courts requesting the honourable magistrates to refer the criminal cases to the police officers to get them registered. One only hopes that things would be brighter in future and there would be no hardships for registering cases against the fraudulent companies.

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Multi-level marketing menace taking its toll on our economy

The recent arrest of the chief of businesstalent.com in Hyderabad had proved once again that how the gullible and for that matter our economy is vulnerable to the schemes of the fraudulent companies. After all these frauds committed by a number of crooked companies, people still fall for the fast buck i.e. easy and quick money. They never realise that it is a trap for taking away their hard-earned money. They are easily duped with the tall promises of becoming rich in a jiffy.

HOW TO RECOGNISE THE FRAUDULENT SCHEMES:

It is very easy to identify the fraudulent schemes provided you are not hooked to the concept of making easy and quick money. Generally, though people knew that it is a fraudulent scheme, they think that they would be the first to make some money and the late entrants would lose their money.

But it is not true. It depends upon how many you could further deceive more people with sweet words and empty promises to join the scheme. If you cannot enroll more members you would certainly lose all your money.

For instance, there are a large number of people who lost lakhs of rupees after purchasing products from Herbalife. They could not sell their products though they stocked a sizeable amount of products and left with the stocks. Still, they do not realise that is the fraudulent scheme that is responsible for their loss. They blame themselves for their incompetency in enrolling new members.

TWO POINTS TO PONDER:

Whenever you are approached by someone to join some scheme, with the conditions of becoming member and further enrolling members, you must immediately realise that is a chain scheme and illegal. Try to tell him that is illegal and a crime. If he does not heed to your advise, try to approach the police. Generally police do not hear our voice.

Other option is approach an advocate or write to the Secretary of Corporate Frauds Watch to take legal recourse against such fraudulent companies.

The biggest corporate fraud ever pulled

There have been scandals of huge proportions in the past. But this is the biggest fraud ever pulled on people in the history of Free India. It is such a huge fraud that people all over the country were taken aback to absorb the intensity of it.

Byrraju Ramalinga Raju, founder and chairman of Satyam Computers Services Ltd, who has been looked at with awe for building such a vast empire of computer services, has suddenly found himself behind bars before he realised whatever happened.

But it is hard to believe that it all happened without a preplanned conspiracy and without the knowledge of a group of persons at the helm of affairs. And how could it bypass the scuritnising eyes of the world famous auditors. Anyway, the billion dollar question is whether Ramalinga Raju manages to get away without minor reprimand or none at all. Anything is possible in India.

Another thing that would never be reported is the details of political patronage behind the scandal.

It seems the Indian Press is trying to evoke some sympathy among people for Ramalinga Raju by reporting how he is spending time in the jail. But the moot point whether he deserves that sympathy.

Many things have to come out of the cupboard and it is a suspenseful drama till the end.

Incorrigible attitude of the gullible

Generally speaking, people are incorrigible and they cannot resist the temptation of easy and quick money. That is the weakness on which many fraudulent companies rely on to make fast buck. When some people enquired about the Duck Development Society at Gadval, Mahaboobnagar district, I told them not to fall prey to the false propaganda of that society with easy and quick money. Still, not only they have joined in the scheme but also made others join it. Now, when police started enquiries into the scam, they want to know whether police filed a case against that company. Their worry is about the police case not about the genuineness of scheme and the fraudulent Society. If there is no police case against the Society they would continue to join more people into the scheme. Their attitude to reap the benefits before the company closes shop, is disgusting. They sure know that it is a fraudulent Society and soon it would close shop. Still, they want to be the first to get the benefits and they do not care if the people who joined later lost money or not. The other day, a worried man from Gadval called me to find out whether there is a police case against the company. I patiently told him that it is a fraudulent society and the question is not the police case but people losing money. The Society is promising to repay Rs. 36,000 in 42 days if they paid Rs. 20,000. There is no business on earth which gives that amount of returns. There is no justifiication for the offer. When the police enquired about the scam, I told the Gadval CI Mr Kiran Kumar that if the business is that lucrative they could approach some commercial bank with the project report and the Banks would be happy to extend loan facility to the society. Still, the Soceity prefers to mobilise funds from public which is prohibited under law. No person under whatever pretext is entitled to mobilise funds from public and this is the established law in India. Let us hope people would realise this and keep themselves off from these fraudulent companies.

Amway's audacity questioned

Andhra Pradesh State Government filed a common counter against the writ petition filed by Amway India Enterprises in the Hon'ble High Court of Andhra Pradesh questioning the legality of its continuance of the illegal business once the High Court of Andhra Pradesh pronounced that its schemes squarely attracted the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978. The common counter can be described as brilliantly drafted document and it hit the nail on the head. It is like the axim in Hindi, ulta chor kotwal ko daunte. The Amway is indulging in the illegal money circulation scheme and questioning the State government of its acts which were acted upon keeping in view the larger interests of people. It is high time that all the activities of the Amway are closed and it is thrown out of the country. Its illgotten wealth should be confiscated. What here we have to understand is whether a criminal can continue the crime because of the fact that the criminal case is still pending in a court of law. The illegal modus operandi of the Amway is exposed and it is high time the officials swiftly acted and closed the business of the company and its godowns seized.

Duck menace in Gadval

Of late, ducks have become a big menace for the denizens of Gadval in Mahaboobnagar district. Do not wonder about how ducks became menace. Actually it is not ducks but a society is inducing people to part with their money by offering them ducks. Let us get into the story how the gullible are being lured into the scam. Duck Development Society, a Prakasam district-based organisation, is offering training in duck rearing which it claims is very profitable business and those who want to become members to get trained in duck rearing have to pay Rs. 5,000 as membership. The society would impart training in duck rearing. Earlier, it was only Rs. 3000 since there has been scrambling from people the membership fee has risen to Rs. 5000. Simultaneously there is another offer from the Society. If the members pay Rs. 20,000, after 42 days they would be repaid with Rs. 36,000. After hearing my radio speech, a person from Gadval called me and enquired about the viability of the scheme. He was told not to fall prey to the machinations of the new scheme since there is no business on earh that would fetch Rs. 16,000 profit in one and a half month period. He was not convinced. I tried to reason with him in vain. I tried to talk to the superintendent of police of Mahaboobnagar district who said that the DSP of Gadval has been entrusted with the enquiry of duck society. I contacted the DSP and he was busy and told me that he would talk to me later. He never spoke to me again. After a month, Gadval Circle Inspector Kiran Kumar called me and asked to speak to the legal representative of duck society. I told them that the society is indulging in illegal money circulation scheme and they have no business to mobilise money from public be it in the shape of deposits or membership fee. After a lengthy argument, the legal representative offered me to visit Gadval to get explanation in detail. However, he developed cold feet immediately and on some excuse he left for Hyderabad promising that he would return soon. Now, the police are busy in preparing arrangements for Tungabhadra pushkaram and after December 22 only they could spare some time to get into the duck menace. You know what will happen meanwhile. The society would amass several crores of rupees and buy property with that money in somebody else's name. The members would be in an eternal waiting mode to get back their money. That is what exactly happened in Peeshonu case of Suryapet, Nalgonda district. How do they pay Rs. 36,000 in 42 days for a mere investment of Rs. 20,000. That is the catch. The society would repay some members to instill confidence in others from the money collected from the new members. Later, the chain would come to end at some point or other. This is the state of affairs in our country. Meraa Bharat Mahaan.