NMart seeks investigation by CID, how funny?

NMart filed a writ petition in Andhra Pradesh High Court seeking transfer of all criminal cases filed against the company to the Crime Investigation Department (CID), Hyderabad. The High Court admitted the petition and issued notices to the State Government and the Director General of Police to present their views on the petition.
Though it has to be wait and watch what the government would do in this respect, some basic questions arise regarding the writ petition.
Can a theif ask or demand that a particular police officer or a group of police officers should investigate his crime?
This is not first time such proposal was put forward by NMart. Earlier also, the same demand was proposed and that writ petition was wtihdrawn later.
WHY NMart is asking the judiciary to transfer the criminal to the CID is the moot point to be discussed at length. However, due to the constraints of many things, let us briefly discuss about the issue here.
The CID has the dubious distinction of prolonging the investigation for several years. Moreover, the CID never presses for the expedition of the trial in the court.
The cases in point are several instances.
The CID filed a criminal case against the Amway India Enterprises in 2006. The Amway India moved the AP High Court to declare its business model legal. However, the High Court in unambiguous terms stated that the business model of Amway is illegal.
Then Amway India tried its hand by moving a special leave petition in the Supreme Court. Unfortunately for Amway, the Supreme Court upheld the High Court decision.
Then following direction of the Supreme Court to complete the investigation in six months and file the chargesheet, the CID filed the chargesheet in the Chief Metropolitan Magistrate Court, Nampally, Hyderabad in 2007. 
For reasons better known to the CID officials at the helm of affairs, the name of the company i.e.Amway India was not mentioned in the chargesheet. When that was pointed out by a section of media and Corporate Frauds Watch, the CID officials included the name of the company in the chargesheet. 
After that the CID never bothered to pursue the case in the CMM Court.
The accused in the criminal case including the CMD of Amway India 'visit' the court occasionally whenever it was suited to them and ask for a date for the next appearance whenever suited to the accused.
Now it is more than six years, the 'farce' has been going on without taking the case to its logical end.
Then again in 2008, Corporate Frauds Watch filed a criminal case against GoldQuest International, which has duped Indian up to over 20 billion rupees. When several criminal cases were filed against the fraudulent company all over the State, the investigation was transferred to the CID in 2008. Even after five years, the CID did not file even the chargesheet in the court. It is not even sure whether it had completed the investigation into the whole murky deals of the GoldQuest.
The CID has also taken up investigation into the Rs. 30 billion fraud by speakasiaonline. The Singapore-based company had defrauded Indians and after Corporate Frauds Watch lodged a complaint, the CID has taken up investigation in 2011. The investigation remains incomplete till date forget about chargesheet.
Morever, there have been several allegations against the top CID officials regarding the investigation into these criminal cases.
In essence, transfering the case to CID means burying it fathoms deep. That is why the crooks of NMart has moved the High Court to transfer the case to the CID.
The reasons:
1. The accused would obtain the bail easily since there would be little resistance.
2. The case would be pending investigation for many years
3. After investigation the case would be pending trial for many years.
4.The accused would enjoy the 'fruits' of his crime without hindrance.
5. The accused would have to appear, if at all, before only one court instead of various courts throughout the State.
6. The accused would be able to start another racket before the law-enforcing agencies caught him.
7. The conviction, if at all, for the crime would not be in near future.
 When there are so many benefits, naturally, the thief asks for investigation into his crime by an officer of his choice.
P.S. After making many trips to various parts of Andhra Pradesh, Gopal Mohan Singh Shekhawat is now cooling his heels in the Ongole district jail comfortably with the luxuries his ill-gotten money provides him.

Police seek custody of Gopal Shekhawat

The police of various districts where criminal cases were filed against Gopal Mohan Singh Shekhawat, the kingpin in the multi-crore scam of NMart aka New Look Retails Ltd, are seeking his custody for his interrogation. They, it seems, wanted to know as to how much money he has illegally collected from public and where did he stash the cash apart from spending on luxurious cars and a helicopter. 
Already Prakasam district police filed a petition for his custody. They may question the accused for at least three days if not a week. The Visakhapatnam police have also filed a petition for the custody of multi-crore scamster to grill him about the details of the scam.
Guntur DSP (Crime) Ravindra Babu said that they are going to file the custody petition to interrogate the accused. 
Chilakaluripet police are also ready for filing a petition seeking the custody of the accused.
However, one has to wait and watch how many more police would seek custody of the NMart chief, prime accused in the multi-crore scam.
There is already a criminal case in Kerala and the Kerala police may also want to question the accused.
Three criminal cases were filed in Aurangabad, Maharashtra, and they may also ask for custody of Gopal Shekhawat. 
Meanwhile, the CID is also preparing the list of criminal cases against the accused.
It is worth to note here, that the counsels of NMart kingpin filed a writ petition in the AP High Court soon after Prakasam district police filed the FIR against the company seeking the transfer of the case to the CID of AP. 
The motive behind the petition is well known. However, before the AP High Court heard the petition, the counsel of NMart had withdrawn the petition with the plea to submit once again. However, the NMart counsel never submitted the writ petition again in the high court.

NMart's writ petition of 2010 was also withdrawn

This week NMart's counsel has withdrawn the writ petition he filed on behalf of NMart in the AP High Court in August 2010 after Corporate Frauds Watch lodged a complaint with the police against the fraudulent company stating that it is a fraud attracting the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978. The NMart appealed to the High Court to declare its business model legal.

Corporate Frauds Watch filed an implead petition in the same writ petition and appealed to the High Court to hear its plea before taking a decision on the writ petition filed by NMart.

However, the fraudsters tried their best to prolong the hearing on the writ petition.

Finally, the Andhra Pradesh police led by an upright police officer Dr Raghuram Reddy, superintendent of police of Prakasam district started taking action against NMart in 2012.

Immediately the NMart racketeers filed two more writ petitions in AP High Court in 2012 instead of putting forward arguments in the 2010 writ petition. 

When they found the going got tough, they simply appealed to the High Court to allow them to withdraw the petitions.

However, the writ filed in 2010 was not withdrawn at that time.
The counsel of NMart on Monday withdrew the writ petition as there was nothing else he could do with it.
In effect, the NMart lost one more chance to defend its business model in AP High Court. In essence, it could be deduced that NMart has actually nothing to present to the judiciary to defend his racketeering.
It is really pity that still the NMart 'distributors' - the fancy name for members - are still in the make believe world that the NMart would open soon.
It has already been mentioned several times in this blog that no court in India would give any relief to the racketeering of NMart and their ilk.
The classic example of this statement is the latest raids on Amway India in Kerala. The fraudulent company has no defense left for it to claim its 'proven business opportunity all over world' was good for Indians.
Last time in 2011 too, instead of approaching the judiciary for a remedy, the fraudulent Amway racketeers have mobilised some IBOs to submit a representation to the chief minister of Kerala.
This time they simply tucked the tail and slunk off.

Easy and quick money attracts like magnet and a large number of people would be affected in course of time

Money won’t grow on trees. Sooner the consumer realizes this better for the society.  If any company, be it limited, private limited, association of individuals, society or person, is offering huge rate of interest say thirty per cent per annum or more, it is always better to keep off from them.

It is virtually impossible to give so much rate of interest for anyone. The case in point is the recent scam of NMart a.k.a. NewLook Retail Ltd. The company floated by Surat-based Gopal Singh Shekhawat offered enormous returns on a simple investment of Rs. 5,500. Every member, who is attractively called distributor though he hardly distributes anything, has to pay an initial amount of Rs. 5,500 and he would be given a suit length worth about Rs. 1500 (many members did not receive them that is another matter) and 48 vouchers each costing Rs. 220 that has to be exchanged in the next 48 months with products in the retail malls of NMart.

NMart first registered and collected money from the ‘distributors’ all over country and later started malls, which is a misnomer. Almost all these malls have products like biscuit packets, kurkure, soft drink bottles and very few toiletries.

NMart has also offered Rs. 200 per enrollment of new members into the scheme. If a member enrolls 50 members he would get Rs. 10,000 that means he got hundred per cent returns on enrollment alone.

Apart from commission on enrollment, the members are offered gifts like computers, motorcycles, luxury cars and even foreign jaunts and many more if they enrolled prescribed number of members into the scheme. 

And by exchanging coupons with products in the next 48 years he would get 220x48= 10,560. It is again hundred per cent appreciation of what he invested in four years.

There is one more offer, if a member purchases products worth Rs. 1500 every month for the next 48 months, he would be given an incentive of Rs. 11,000. This is again hundred per cent appreciation of his initial investment of Rs. 5500. It is all very inducing for the common man to simply brush it off.

Where does the NMart get all these money from? Nobody questions. The greedy people enrolled speedily and it spread like a wildfire. Like all Ponzi schemes, the NMart would pay the early birds from the payments of late birds and once chain breaks, he would vanish with all the money. 
If any NMart member has any problem like breach of contract he has to go to Surat to file a civil suit and it is impossible to go to Surat to claim a settlement for the money he invested in the company as the expenses are far more than his investment.

Anyway, he has already started enjoying life with people's money going around on a helicopter and a Rolls Royce.

Corporate Frauds Watch, Vijayawada-based civil society organization, smelled rat in it and lodged a complaint with the police way back in 2010. The police as usual were complacent to such complaints and let it grow. However, Gopal Singh Shekhawat, like all Ponzi scheme operators, filed a writ petition in the AP High Court and the police stopped the investigation stating that there is a writ petition pending in the high court.

By 2012, the membership of the company has touched almost 1.5 million. Corporate Frauds Watch has been lodging complaints with various agencies all over the State. Finally, the Prakasam district police under the guidance of its dynamic and incorruptible IPS officer Dr N Raghurami Reddy went ahead and took the complaint on file. The rest is history.

Gopal Singh Shekhawat filed another writ petition in AP High Court questioning the propriety of Corporate Frauds Watch but it was dismissed as withdrawn on October 9, 2012.

Money won’t grow on trees and sooner the people realized this better for the society.

Wake up Consumers! Don’t fall for the easy and quick money.

NMart trying to enroll new members

NMart is on an enrolling spree of new members into the scheme in Uttar Pradesh, Madhya Pradesh. According to reports from these two states, the NMart has been trying to kindle some hope among its existing members by spreading outright lies. No need to say that these lies would not serve any purpose and people have realised that it is a fraud.
Some of the lies include: NMart has got transferred the Writ petition from Andhra Pradesh High Court to Bombay High Court and Shyam Sundar could not come to Mumbai to contest the case and NMart is going to win it.
NMart troubles would be over soon and they could start the business soon and every NMart member would be compensated for the loss they suffered so far.
However, the reality is otherwise.
The writ petition in the Andhra Pradesh High Court is dismissed as withdrawn and it simply is not possible to transfer writ petitions to other high courts.
Gopal Singh Shekhawat, the kingpin behind the racket is still hiding in some rat hole afraid of peeping out at least once in a while. If he comes out, the police would catch hold of him immediately and put in a prison.
Surprisingly, no NMart member is asking the natural question as to why Gopal has failed to clear the their doubts and why he is hiding if he believes that his business is legal. Actually, Gopal has made enough money to live comfortably through out his life and he least bothers to get the business restarted.
Now he is only trying to make as much money as possible in other States where there are no criminal cases filed against NMart. Once the police got wind of the criminal cases in South Indian States, they would also file criminal case against NMart and more people would lose their money.
Corporate Frauds Watch appeals to people not to fall prey to the evil designs of NMart and not to lose their hard-earned money. 

Andhra Pradesh High Court refuses to grant any relief to NMart

Justice K C Bhanu on Tuesday heard the arguments of NMart's counsel in the writ petition filed by NMart which is accused of indulging in money circulation schemes and criminal cases were filed against the company.

The counsel for NMart pointed out that the police have been registering more FIRs against the company when the writ petition is being heard in the High Court. However, when Justice Bhanu asked for the copy of second FIR he could not show.

The counsel requested the Bench to grant interim stay on the investigation into the case against NMart.

Justice Bhanu said that when the original plea under the writ petition was not maintainable how could an interim stay could be granted. He refused to grant any relief to the NMart.

When the NMart's counsel appealed to give more time, the hearing is adjourned and would be heard only on Dasara vacation.

In effect, the members of NMart have to wait till at least October 29 to know their fate which would anyway be sealed by then.

It is a lesson to the greedy people who want to make fast buck by way of cheating their own friends and relatives though they knew well that it is a crime.

People like Gopal are always try to make easy and quick money by playing with the greediness of people who too want easy money. Ultimately, it is Gopal who made wads of money laeaving several lakhs of people  in the lurch.

The smooth talk of such crooks is the most dangerous part in our society which would be broken with mistrust among people.

My Dear Fellow Indians and world citizens! Do not fall for the easy and quick money lure. 

There is nothing like that. These crooks are out there to grab your hard-earnings. 

NMart writ did not reach the Bench for hearing on Monday

The writ petition No. 27101/2012 filed by NMart in Andhra Pradesh High Court was listed for Monday with the number 127 in the list of petitions to be heard.

However, the writ petition did not reach the Bench at the end of day at 4. 15 p.m. The petition is listed again for Tuesday with the number 111. However, it is unlikely to reach the Bench even Tuesday also. 

If it does not reach the Bench on Wednesday also, it may be posted for next Monday.

The NMart filed the Writ of Mandamus to declare the action of the police officials in interfering with the civil disputes of the petitioner as illegal, arbitrary and appealed to the court to set aside the proceedings pending against the petitioner in FIR No. 154 of 2012 dated 23.8.2012.

The writ mentioned Corporate Frauds Watch as the fourth respondent.

In the earlier arguments, the government pleader assured the court that the police would not at all interfere in the civil disputes but would only act on the criminal activity of the company. However, Justice K C Bhanu directed the government pleader to file the affidavit.

It is most likely Justice K C Bhanu may dismiss the writ petition and that would empower the police to go ahead with the arrests of more people who joined the scheme and made others join. 

Anyway, since the Government had extended assurance that the police would not interfere in civil disputes but it is the criminal case that they would like to investigate, the police would go ahead with investigation in all the NMart malls through out the State and look for any other bank accounts to be frozen.

Corporate Frauds Watch has been warning for the last several years not to fall prey to the evil designs of these crooks and it is sad that many people are falling for the bait of easy and quick money. They are easily carried away by the tall promises of huge returns by these crooks.

It is hoped that people would realise the futility of joining such schemes for easy and quick money and save their money for their kids instead of giving away to Gopals, Amways and others. 

Gopal cheated millions showing empty papers as Supreme Court order

Just watch this video which was taken when Gopal Shekhawat was opening NMart's Bhopal branch. The video is self-explanatory. 

Gopal was very confident to tell the blatant lie to the gullible that there is a Supreme Court order allowing his company to continue his business. He asked them to show the Supreme Court order to the police when they were confronted to arrest them under money circulation scheme enactment. But he never handed over the copy of it to anyone. Nor he could produce it to the Andhra Pradesh police when he was arrested and about to be shifted from Mumbai. It is proved beyond reasonable doubt that Gopal is a number one cheat. So he knew from the beginning that the police would come after him and his business associates for indulging in money circulation scheme.

It is also proved beyond reasonable doubt that he lined his pocket with ill-gotten easy and quick money. Only his advocates somehow managed to obtain the bail for him and he now became the fugitive running away from the law-enforcing agencies hiding in a rat hole.

Still, his 'devotees' praise him and hope that NMart would be revived soon. They refuse to believe that NMart is gone and so is the hundreds of crores the crook Gopal has garnered from public. They also blindly believe that there would be a comeback for NMart.

My dear fellow Indians! This is the true colour of all these crooks who are out to cheat you in the name of multilevel marketing, network marketing, referral marketing, direct selling so on and so forth.

The Supreme Court has rightly said in its judgement in Kuriachan Chacko case. The organisers of such schemes   know well that it is mathematically impossible to run the schemes forever. They also know that the chain is going to break sooner than later. Still, they induce people to become members. That is why Section 420 of Indian Penal Code is applicable while filing criminal case against such crooks under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

It is a classic case to be presented to the law enforcing agencies and law makers to prove that there is nothing like infinite chain and ask them to desist from making any guidelines or regulations in favour of the multilevel marketing.

For the last several years Corporate Frauds Watch has been cautioning the public not to lose their hard-earned money to these crooks. They are overpowered by greed to earn easy and quick money. This is how the crooks have been cheating the gullible in the name of multilevel marketing.

Some of our friends who lost their money and vociferous in defending the fugitive Gopal say that they have no time even to see the video (LoL).

NMart accused sent to judicial custody in jail

Prakasam district police who arrested the four accused persons who hold key positions in NMart brought them and presented them before the judicial magistrates of Chirala and Kandukuru.

Md Saleem Khan, one of the directors of the fraudulent company NMart was presented before the judicial magistrate of Chirala and the magistrate sent him to judicial custody for 14 days.

Likewise, Chief Executive Officer Akhil Patrawala, Human Resources head Hiren Devani, Business head Pratik Desai were presented before the judicial magistrate of Kandukuru. The magistrate sent the accused persons to 14 days judicial custody.

Meanwhile, the key accused in the Rs. 1400 crore scam, Gopal Singh Shekhawat continues to play hide and seek with the police.

It may be recalled that Corporate Frauds Watch filed a criminal complaint against the fraudulent company NMart a.k.a. Newlook Retails Pvt Ltd for indulging in money circulation scheme in the name of selling products.

Police arrest CEO, Director, HR Head, Business Head of Nmart

Prakasam district police arrested one of the directors of NMart Md. Saleem Khan, Chief Executive officer Akhil Patrawala, Head of Human Resources Hiren Devani, Business head Pratik Desai. The accused persons would be presented in the judicial magistrate court. Kandukuru CI Akkeswara Rao and Chimakurti SI Muralikrishna arrested the accused.

However, the chief of NMart Gopal Singh Shekhawat is still at large and police issued a lookout notice for him. It may be recalled that NMart a.k.a. Newlook Retails, indulged in money circulation scheme in the name of selling products offering astronomical returns in a short span of time. Corporate Frauds Watch, Vijayawada-based civil society organisation, lodged a complaint with the police of Kandukuru about the illegal activities of the company.

However, after the police registered a criminal case and went to arrest Gopal Singh Shekhawat, on the promise of presenting himself before judicial magistrate at Ongole, he secured bail but jumped the bail. Thereafter, police have been searching for the fugitive Gopal Shekhawat.

Meanwhile, NMart filed a couple of writ petitions in Andhra Pradesh High Court but the high court refused to entertain any relief to the accused including anticipatory bail to the kingpin Gopal Singh Shekhawat. NMart could not convince the judiciary that its business model is legal. It also could not convince the judiciary how they are going to give returns of more than hundred per cent in four years. They also could not explain how they are going to extend various gifts like computers, motorcycles, luxury cars and even foreign trips to the members if they enroll more members.

That is why Gopal Singh Shekhawat is hiding in some obscure place avoiding the arrest.

Don't fall for promises of easy and quick money

Many people are arguing in this blog that why I have taken so much time to set the law in motion. Some others want a regulatory mechanism to bring order in multilevel marketing. 

When the law clearly says that becoming a member and enrolling others to become members in such schemes is prohibited under the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978, 1978, what is the point to have a regulatory mechanism to make an illegal act legal. It is an open illegal money circulation scheme.

I have made it clear several times, many people who join in these schemes want to earn easy and quick money though they know it is a crime. I have heard at one NMart retail shop, that NMart is going to file a writ petition in the High Court, and we could continue for sometime. It means that they know well that they are cheating their own friends and relatives to join such scheme. 

That is why people are vociferously raising their voice against me and even casting aspersions on my action.

Andhra Pradesh High Court in its judgement in the writ petition filed by speakasiaonline pointed out that "The first contention raised by the learned Senior Counsel is that First Information Report can be registered only on commission of an offence. It is true that First Information Report is to be registered on commission of an offence, more particularly, for a cognizable offence. Once a cognizable offence is committed, First Information Report can be registered. But at the same time, some of the provisions in the law enable the Investigating Agency to register First Information Report for mere preparation alone, for example, Sections 120-B, 399 of IPC and 7(1)(a) of the Criminal Law Amendment Act. Further, whether an offence committed or not always depends upon the ingredients mentioned in the provision of law. Some provisions in the penal laws made the preparation also as an offence. When the provision deals the preparation as an offence, the preparation itself is commission of offence."

The Supreme Court in its judgement in AR Antulay vs. RS Nayak (AIR  1984 SC 718) case stated that "Crime is a wrong against the society at large and therefore, as a general rule, any person having knowledge of the commission of an offense may set the law in motion by a complaint."

It is clear here that a person need not be a victim to lodge a complaint and anybody could complain whenever a crime takes place.

In the speakasiaonline case also, the racketeers raised the same question that the complainant made unjust demands and when it was not met, he lodged a complaint.

The High Court has looked whether there was prima facie offence in the complaint and when the crime was found it dismissed the writ petition.

This is exactly what is going to happen in the case of writ petition filed by the NMart.

In fact, the first complaint was lodged with the police way back in 2010 and had the police taken action at that time, the NMart would not have grown to this extent. Many people would have been saved. Now everyone is going to lose their hard-earned money. I really feel sorry for them. Many of them were lured by easy and quick money and high returns. Even today they strongly believe that they are going to earn a lot of money as per the promises of Gopal Shekhawat.

People should realise that it is a crime to join such schemes and that the friends and relatives they have joined in such schemes would never believe them in future if they suffer loss. If the mutual trust is lost, the society would collapse.

I appeal to the people all over world not to join such multilevel marketing companies and cause damage to the social fabric of our closely knit society.

Gopal Shekhawat's writ petition posted next week

In a sudden twist of the story, the NMart writ petition No. 27101 filed by NMart racketeer Gopal Singh Shekhawat seeking relief from the Andhra Pradesh High Court has reached the Bench of Justice K C Bhanu on Monday afternoon.
However, the counsels of both sides could not reach the court probably thinking it won't reach the bench in time.
But it did reach and since both the counsels did not appear, the Honourable Bench adjourned the hearing for one more week.
In effect, Gopal Singh Shekhawat has to wait for one more week sitting in some rat hole to learn that his writ petition was dismissed. Anyway, the petition would be dismissed once the judge hears how shallow was the argument and how the huge money was amassed by the accused in a short span of two years.
Meanwhile, the Corporate Frauds Watch filed its vakalathnama in the High Court to present its version of the daylight robbery indulged in by the accused persons in the now infamous criminal case.
It is already reported that the Police from Prakasam district are leaving no stone unturned to trace the whereabouts of Gopal Singh Shekhawat and his wife Pratibha who preferred to hide in some mysterious place.
Sources said that the police suspect that Gopal Singh might have left the country to hide in some foreign country though it is not yet confirmed.
Anyway, since he stashed a lot of money, he could comfortably settle anywhere in the world without bothering about the people whom he had cheated up to billions of rupees.

Beware of crooks out there to cheat you

There have been many comments most of them abusing me for taking the stand against multilevel marketing posted on this blog. Sadly, many of the comments are made by the members of NMart who claim to have lost their livelihood.
NMart was started only two years ago and these have been doing some other jobs for their livelihod. But they claim that with the closure of NMart they lost their livelihood.
One person even went to the extent of that their children are starving.
The fact is all these members of the money circulation scheme are hooked to easy and quick money and want to make fast buck by enrolling their friends and relatives and even strangers with the promise of making them rich.
They have not realised that they are only enriching one person i.e. Gopal Singh Shekhawat.
What they also do not realise is that joining and making others join in such schemes is also crime under the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.
They should realise that they are harming our economy by encouraging one person to get unjustly enriched .
It is high time such  crooks are nipped in the bud before they raised to this type of uncontrollable level.
Corporate Frauds Watch told the police higher officials to stop this illegal business two years ago. At that time, NMart has only one shop in Andhra Pradesh and only 12 shops all over India.
NMart has chosen to file a writ petition in the AP High Court and the police had simply forgotten to take any action on that writ. Had they filed the counter affidavit and argued in the writ petition, the things would have been different.
This betrayed the incompetence of our system.
Now at least two million people are affected by this scam and almost all of them lost their hard-earned money. Only a handful of made money by inducing hundreds to join the scheme.
Many argue that they lose nothing and moreover, it is a profitable venture.
The NMart chief is making tall promises which would be impossible to fulfill. He pays returns only as long as they receive new  members into the scam.
The chain is going break soon and all the members are going to lose their hard-earned money.
People who read the comments realised that these NMart members are bluffing. Some people are even resorting to threats which they do not realise might land them behind bars.
I am a straight living person with only public interest in the mind.
Wake up countrymen! these crooks are out to cheat you and your friends and relatives.

NMart manager arrested in Vijayawada

Machavaram police in Vijayawada city have arrested the local manager of NMart retail shop, J Leela Kumar for indulging in money circulation scheme by inducing members with easy and quick money.

SI Mohan Rao said that several hundreds of members joined in the scheme of NMart and it is a crime under the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
They are looking for the members who amassed sizable amount by joining members into the scheme, he said. However, it would take sometime to take stock of the situation before further arrests, he added.

NMart chief turns fugitive

The NMart chief did not appear in the Ongole magistrate court on September 1. This shows that he has no respect for law.
NMart chief Gopal Singh Shekhawat assured the Borivili magistrate in Mumbai that he will present himself before the Ongole judicial officer on September 1. Can't he realise that it amounts to contempt of court.
NMart chief was arrested in Surat and was presented in the Mumbai court for prisoner transfer warrant. However, a group of advocates appeared on behalf of him and assured the court that he would not run away and face the court case.
But he did contrary to what he had promised before the judicial officer in Mumbai.
Prakasam police are now on the lookout for the absconded fugitive.
Meanwhile, the Andhra Pradesh High Court issued notices to the respondents to file their affidavits before it in three weeks.
Gopal Singh Shekhawat anticipated that he would get some relief  from the High Court. In effect he appealed to the High Court to quash the FIR filed against him. But the High Court pointed out that a criminal case has to be investigated and the respondents need to be given a chance to explain their point of view.
After the case was posted for three weeks, anticipating trouble and fearing that he would be sent to judicial custody by the court, Gopal Singh Shekhawat committed another mistake by not presenting himself before the judiciary.

Nmart draws flak in Andhra Pradesh High Court

Andhra Pradesh High Court on Friday rejected the plea of NMart to grant a stay on the police investigation into its business activities.

Earlier, NMart filed a writ petition in the High Court appealing to quash the proceedings of investigation into the business activities of the company. It contended that it is into business activities and has customers all over the country. The company supplies provisions to its customers on long basis.

The police interfered into the its business activities of NMart basing on the complaint lodged by a civil society organistion Corporate Frauds Watch, the petitioner said. The counsel on behalf of NMart stated that Corporate Frauds Watch is not a customer of their retail business outlets nor he suffered any loss due to the activities of the company. "It is a frivolous complaint," it averred.

However Justice K C Bhanu after hearing the arguments at length rejected the plea for issuing stay orders stalling the procedure of investigation into the business activities of NMart. The Judge asked the State government and the police to file their counters in three weeks. The Corporate Frauds Watch was also made one of the respondents and was asked to file its counter.

NMart's counsel appealed to the High Court to grant relief for at least one week so that they could carry on its business activities as usual. "It is just a civil matter in which the police interfered," he stated.

However the assistant Government pleader assured the High Court that the police would not interfere in the civil matters of the company.

Justice K C Bhanu asked all the respondents to file their counters in three weeks and posted the petition after three weeks.

In the name of selling provisions, NMart cheated millions

NMart, said to be a retail marketing business outlet, has been cheating the gullible for the last few years by indulging in money circulation scheme in the name of selling provisions.

The modus operandi of this cheating company is simple. The member has to enroll himself with the company through an already enrolled member by paying Rs. 5500. He would be given 48 coupons each worth Rs. 220 which could be exchanged with provisions in any retail NMart show room in the first week of every month. In effect, the customers who pay Rs.5500 up front are given provisions worth Rs.220 every month for the next 48 months i.e. four years.

More, the members could enroll new members to earn more money. For every new member enrolled the upline member would be paid Rs. 200. An ordinary person could identify the scheme as money circulation scheme.

The scheme looks very attractive. If the members could enroll hundred members, he could coolly pocket Rs. 20,000. In fact that is the bait.
These members keep on concentrating on enrolling members wherever they go with the promise of easy and quick money.

Each member may be losing Rs. 5500 but it is easy and quick money for the company. For each member, the enrolling members gets Rs. 200 only. But the company gets Rs. 5300. That way, if a member enrolls 100 persons, he would get Rs. 20,000 but the company coolly pockets Rs. 5,30,000 without any effort. That is why it is easy and quick money for the company. The company is promising returns in the next four years which is unrealistic.

In the Western countries, it is called 'advance fee fraud'. In India it is called money circulation scheme.

They even enroll new members where there are no NMart retail outlets and the coupons they are given would never be exchanged. They could not travel spending Rs. 200 to encash a coupon worth R. 200. But the real bait is enrollment. Enroll more members and earn lot of money.

Vijayawada-based Corporate Frauds Watch, a civil society organisation started by a group of socially-concerned advocates conducted inquiries into the scheme and come to conclusion that it is also a scam like Amway, Herbalife, Forever Living Products and others.

The society secretary lodged a complaint with Machavaram police in the city and later, approached the Economic Offences Wing of CID of Andhra Pradesh police but to no avail.

Later, on learning that the NMart is active in Prakasam district, the secretary went to Kandukuru and lodged a complaint with the police who registered the case under the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 and Section 420 of Indian Penal Code.

Prakasam police under the guidance of the dynamic superintendent of police, Raghurama Reddy, conducted investigation into the scheme of NMart and finally, the kingpin of the scam, Gopal Singh Shekhawat and his Pratibha were arrested in Surat, Gujarat. However, after Pratibha complained that she was unwell,she was admitted in a hospital.

One may wonder why Section 420 was invoked. The Supreme Court in its 2008 judgement in Kuriachan Chacko case pointed out that the organisers of the scheme knowing fully well that it won't work forever and sooner or later the chain would be broken, are still inducing the public to become members of the scheme. That is why they should be booked also on the charges of cheating under Section 420 of IPC.

The chain is broken and several millions of people lost their hard-earned money.

High time police concentrated on NMart fraud

With the fate of RMP Infotec is sealed, it is high time now the police concentrated on the fraudulent business of NMart which has been bleeding the gullible with the false promise of easy and quick money. This fraudulent company is collecting money in advance and promising to return goods in the next four years. Any reasonably thinking person could understand the advance fee fraud in this scheme of NMart. However, our Police could not look beyond and ascertain the criminality of the scheme for reasons better known to them.

When Corporate Frauds Watch first lodged a complaint with the police, this fraudulent company NMart has less than 20 shops. Now it spread its tentacles to several States all over India and had already collected several crores of rupees from public.

One look at the long list of promises reveals the dubious ways of this fraudulent company. It is promising to provide provisions worth Rs. 220 every month for the next 48 months. What provisions do we get for Rs. 220. Not only that, they also promise a bonus of Rs. 11,000 if they purchase products worth Rs. 1500 every month for the next 48 months. People would never realise that it is a big lie. Still, people are so carried away by the false promises, they keep on hunting for new members. Each member is promised to be paid Rs. 600 in the binary system. They think if they recruit ten couples they would get Rs. 6000 and they never realise the infinite chain would soon break and every one is going to lose their money. Once the new recruitment stops, the NMart fraudsters may disappear with the funds collected.

My dear fellow Indians all over country? Do not fall for the false promises of this type of fraudulent companies. You are going to lose your hard-earned money.

NMart apologists are overzealous to defend the fraudulent company

Here is a reader, Mr Sachin Jain who expressed genuine concern over public money and put forward real calculations of the money invested by the public in this scheme.

The associates of NMart are only fooling the common man telling Rs 220 per month means 4% return every month if they directly invested. But here the distributor network commission as binary rule four to five time means Rs 2500 approximately + Spill Rs 200 + Jupiter Royalty Rs 100 + Awards and Rewards Reserve Rs 400 + other charges & Fixed Expense Rs 300 + Retail Product Sales Tax Or Other Levis Rs 500. This means total Expanses or Distribution commission is Rs 4000 and balance only Rs 1500. This amount is reserved for IBA Credit Facility. This means after all this the investment amount = 0.00. How does anybody get every month Rs 220? This return is so high and any company or party who gives you a return of more than monthly 1.5 % maximum or yearly 18 % then this company or party is 100% fraud and also refund of Rs. 11,000 after 48 month means big cheating.

I am sure after 48 months, the company would vanish or may change its policy. Anyway our investment would not be refunded.

Gopal Shekhavat claims to have started the business with Rs1800 crore in Surat, whereas looking in the Ministry of Corporate Aaffairs it shows that the company was started with Rs 100, 000 (Rs One Lakh) investment only and he is playing with common people's money. issuing gift coupons for 12 months and an agreement to pay a bonus amount of Rs.11, 000 after 48 months. Who knows and what is the guarantee the company will exist for the period or won't fly away overnight. If the company has any assurance to the common MAN OF INDIA, let it give proper reply with evidence.

My above calculation is 100 % sure and not any new evidence is required for this type of company.

If Company Group Size is really Rs 1800 Crore and he invested his own money, then really this company is No 1 in the corporate sector. Why this company needs public money ? 

Posted by Sachin Jain to Corporate Frauds Watch at Friday, September 02, 2011 12:54:00 AM

It is really surprising that the post against NMart published in this blog on August 28, 2010, attracted the highest number of comments so far totaling 108 comments.

http://corporatefraudswatch.blogspot.com/2010/08/nmart-racketeer-waiting-out-there-to.html 

We could understand how anxious are some of these MLM zealots to defend this fraudulent company. Such type of crooks pose a threat to the social fabric of our society. They do not mind to cheat their own friends and relatives in furtherance of their own ends.

It is high time, the CID Police took cognizance of this crime and launched a massive investigation into this scandal.

Proud speakasians now maintain stony silence

When it was first time written against speakasiaonline on February 6, 2011, there was a huge cry and a number of 'proud' speakasians posted their ire on this blog. Now not one speakasian is visible nor audible.

Ms Harender Kaur, the Chief Executive Officer of Haren Ventures went into hiding and another CEO who is just below the rank of Ms Kaur is also in hiding. The Chief Operating Officer, Mr Tarak Bajpai, is behind bars.

The funds are blocked in the Banks. Now the true colours are revealed and everyone is running helter skelter.

Not surprisingly, after filing the writ petition against the police and Corporate Frauds Watch, now every time it is the counsels of speakasiaonline who are seeking adjournments every time the case is listed on the Bench.

It has happened once again on Wednesday. The senior counsel for speakasiaonline requested the Bench for more time even to hear the arguments of the Advocate General and the counsel for Corporate Frauds Watch.

It is high time, people realised and keep themselves off from joining such schemes.

It is really sad people never learn from past experience. Now the members of NMart are crying hoarse against Corporate Frauds Watch for pointing out that the business model of NMart is fraudulent.