Two held for floating multi-level marketing company and cheating people

Hyderabad: The Task Force police today raided “e cash trade securities” at Red Hills, Nampally, and arrested two persons, who were carrying out a high profile campaigning and luring gullible public with money circulation schemes. The police also seized Rs 6 lakh cash, three gold coins weighing 30 grams and Bank Accounts worth Rs 1.73 crores from their possession.

The accused were identified as J. Shyam Sundar, 48, Director of E-Cash Trade Securities, Red Hills, residing in Sri Krishna Lodge at Lakdikapool. He is a native of KMR Apartments, Naya Nagar, Kodad, Suryapet District. P. Vaasu Deva Naidu, 26, Managing Director of E-Cash Trade Securities, and residing at Sri Krishna Lodge. He is a native of Pallapu Veedhi, Kothapeta, Rajahmunday Urban, East Godavari District.

Police said one year ago, the accused J. Shyam Sundar and P. Vaasu Deva Naidu hatched a plan to cheat innocent people and landed in Hyderabad and stayed at a Lodge at Lakdikapul and started a multi-level marketing company in the name “e cash trade securities” and enrolled some 400 members with 6500 accounts into the scheme by offering them four different packages viz., Rs 10,000 for Silver package with a returns of Rs 200 per day for 100 days, Rs 30,000 Gold package with a returns of Rs 300 per day for 100 days , Rs 70,000 Platinum package with a return of Rs 1,400 per day for 100 days, Rs 1,50,000 Diamond package with returns of Rs 3000 per day for 100 days besides registering a 100 Sq. yards open plot to the member at Kolanupaka village under Aler Mandal of Yadadri District.

The accused maintained a website www.ecashone.com and opened four Bank Accounts in Yes Bank, Central Bank of India, IndusInd Bank and State Bank of India and they collected some Rs 4.52 crore and repaid some amount as a commission to the enrolled customers. While first 50 members were benefited, the remaining 350 members were cheated by the accused. The accused targeted to collect Rs 50 crore in the next three months

As the very establishment of the company for multilevel Marketing scheme is an offence, the accused were booked under section 420 IPC, Sec.4,5 of the Prize chits and Money Circulation Schemes (Banning) Act-1978 & Sec.5 of Protection of Depositors of Financial Establishment Act- 1999 and were handed over along with the seized property to SHO, Nampally Police Station for further investigation. (NSS)