Saturday, 13 July 2013

Cattle & Ghee racket unearthed, SEBI asks HBN Dairies & Allied Ltd to refund money to people

Here is another racketeer company which collected Rs. 1,100 crore (Rs. 11 billion) from public on the promise of high returns within a short span. Any idea what the company had been up to. The company wants to buy cattle and sell ghee to foreign countries to earn thousands of crores of rupees. 
The company had succeeded through the 'agents' to hoodwink people that it is a profitable venture and people believed it blindly. 
The gullible have already invested Rs. 745 crore in the company's 'Cattle and Ghee' scheme with the hope that they are going to become millionaires soon. By March 31, 2011, it has collected Rs. 745 crore from public and after that also it continued the collection. Though it has yet to be ascertained how much the company had actually collected from public it is estimated that it would be Rs. 1,100 crore. 
As is their wont, the Securities and Exchanges Board of India (SEBI) woke up late from slumber and ordered the company to refund the deposits to people. 
The SEBI has issued restrictions on the company which prohibited selling of its properties worth Rs. 1,000 crore in addition to the deposits collected by the company. 
The SEBI has also instructed the company to prepare an action plan to refund the Rs. 1100 crore deposits to the public within thirty days. 

Friday, 12 July 2013

Mizodirect website contains many a discrepancy

Corporate Frauds Watch has been closely watching the website and already has written a letter to the Mizoram State government seeking clarification over the website.
On the face of it, there are many discrepancies in the website.
Every State government has its own emblem. However, this web site has the emblem of the Union Government of India which is not correct.
We are asking the State  Government to clarify its stand on it.
The website is vacant on all its sections.
Let us wait for the answer from the State Government.
It appears that it is a fraud pulled in the name of the State government. Anyway, let us see what would the government say.

Thursday, 11 July 2013

SEBI busts potato-purchasing racket of Sumangal Industries

It has become very easy these days for conmen to cheat the gullible. Kolkata-based Sumangal Industries started yet another racket with the lure of big returns in short span. And there are many to fall for it.
The company in question asked deposits from people with the promise of 100 per cent returns in 12 months. 
Any idea what it is going to do with the money? 
We have learnt about rackets which promised huge returns if we invest to purchase goats, ducks, rearing sandalwood plants et al. But this fellow has gone a step ahead.
It is going to invest in potato purchases in large scale and sell the same with huge profits. Don't ask how the profits would be 100 per cent. 
It is just a promise. And people fall for it. It had collected several crores of rupees from the mud-heads who believed them.
However, the Securities & Exchanges Board of India put a spanner in the racket of Sumangal Industries and asked it to return the amount in three months to all the investors.
In all these rackets one thing is common. First these racketeers catch hold of the group leaders who are not ashamed to meet people once again with their smooth talk.
These shameless fellows talk about easy money and induce peoplewho already lost money such scams to get back their money where they lost once. 
Who are these group leaders?
People who vociferously defend the MLM in this blog stating that is the best business model in the 21st century. And calling everyone who oppose them names. These people are the dangerous lot to the society. They are interested  in only in lining their pockets.

Tuesday, 2 July 2013

Amway India’s chain scheme is illegal: SP

Ongole: Superintendent of Police Dr Kolli Raghuram Reddy asserted here on Saturday that Amway India’s business model is illegal and warned people not to fall prey to the easy and quick schemes extended by various companies in the guise of selling products and services.
In an interview with the Hans India, the SP said that the people who join in such schemes and make others join in such schemes are also liable for prosecution.
Pointing out that one of such companies which is offering easy and quick money to people is Amway India Enterprises, the SP recalled that the Division Bench of Andhra Pradesh High Court in unambiguous terms held that the business model of Amway India is illegal after hearing at length the arguments from both sides.
The print media or electronic media should not publish the advertisements of such companies and the Government has powers to attach the properties of such publications, he remarked.
The State government has issued an order in 2008 not to publish the advertisements of Amway India holding it as an illegal company, he added.
Countered the recent propaganda by Amway India that the officials have been making false statements against the business model of Amway Indi, he said that this amounted to contempt of court as already the Andhra Pradesh High Court held its business model illegal. Later, the Supreme Court also upheld that AP High Court judgment, he pointed out.
The SP said that everyone who was involved in the operations of Amway India is liable for prosecution.
He warned the people to beware of the chain schemes which have been cheating people in large numbers. “People who lose money in such schemes are also liable for prosecution since the Prize Chits and Money Circulation Schemes (Banning) Act clearly says that joining and making others join in such schemes is a crime,” he said.
The SP pointed out that already a criminal case is pending investigation in the Two Town police station in the town. “The Amway India has been casting aspersions against the police officers instead of complying with the court orders,” he said.