Mumbai: The economic offences wing (EOW) is at present investigating at least 50 multilevel marketing (MLM) companies, suspected to have duped investors of over Rs 2,500 crore. A specialized unit to handle these cases was formed in the EOW after the police began its probe in the Rs 2,276-crore SpeakAsia case.
Besides SpeakAsia, the firms under probe include Aryarup Travel, City Limouzine, Red Carpet, Admatrix, Seven Rings International, Symbiosis Investment, Aim Limousine, Yes Cube Infrastructure Ltd, Aurum Realty, Raj Investment and VeriSign Infrastructure.
Police officers say the unit should have been formed much earlier, but was delayed due to a shortage of manpower. “We have inducted experienced officers to deal with MLM fraud. These officers were made to attend a training seminar before the unit was formally started,” said a senior police officer. “Lakhs of people invest in fraudulent schemes run by MLM agents. We have cases where victims sold autorickshaws, gold jewellery meant for, say, a daughter’s wedding, and land to invest in MLM schemes that promised them the heavens. In all cases, without fail, the companies downed their shutters and fled with investors’ money.”
The Times of India, November 14, 2012