HYDERABAD: Commissioner of Police, Cyberabad Mr Sajanar informed that a multi-level marketing scam has been busted in which farmers were cheated to the tune of Re one thousand crore.
Addressing a press conference yesterday, he told that this scam was in vogue since 2001. It was being run from NOIDA.
They involved youths and students in this scam. It has 7 lakh members throughout the country.
Giving the modus operandi of the organisation, Mr Sajanar told that the members have to take membership by paying Rs 16,000. They are given 10 thousand points. Later, they were required to enroll other members for which they get commission.
In order to attract the youths and students, they are given training in computers and certificates are given after completion of the course. These certificates have no sanctity as they are not recognized by any institution. Most of the victims of this scam are from Chennai.
Commissioner of police told that this scam came to limelight after a victim lodged a complaint in Chennai. The official of E. Banner, Mr Mallahan has been arrested and a cash worth Rs 70 lakh in bank accounts has been seized.