HYDERABAD: An inter-state multi-level marketing (MLM) scam was busted by Rachakonda police on Tuesday after arresting a 47-year-old businessman along with two of his associates for cheating more than 1,500 depositors from Telangana, Andhra Pradesh, Karnataka and Maharashtra and collecting Rs 18 crore deposits last year. Five others, including the wife of main accused Jinna Kanthaiah alias Jinna Sreekanth, are still at large. Cops froze Rs 1 crore in savings accounts of Green Gold Biotech Company in Uppal.
Sreekanth, a resident of Peerzadiguda, has been running Green Gold without obtaining licences and permissions from the authorities concerned and offering unbelievable schemes to depositors with an intention to cheat them. “If someone purchases a machine of Rs 1 lakh, he gets 40 kg groundnut oil and 200 kg peanuts for extraction of groundnut oil. After extracting the oil, the firm pays Rs 10,000 towards allowance and Rs 5,000 for job work for a period of 24 months. Similarly, if someone purchases Rs 2 lakh worth machine, Sreekanth promises Rs 20,000 allowance and Rs 10,000 towards job work,” said Mahesh Bhagwat, commissioner of police.
Bhagwat said luring people under the guise of such schemes, Sreekanth, who was MD of the firm, induced agents and stock point holders to trap more customers into Green Gold MLM racket. “He expanded his business to AP, Karnataka and Maharashtra too,” said the CP. If an agent managed to enrol 50 customers, the team members were promised an incentive of Rs 25,000 per month for a period of 12 months and if the agent managed to enrol 200 customers, the team members were lured with Rs 50,000 a month.
During the preliminary investigation, cops have identified 1,385 customers in Rs 1 lakh scheme, 144 customers in Rs 2 lakh scheme, 19 customers under Rs 5 lakh and four customers in Rs 10 lakh scheme. “With the money, Sreekanth purchased a 3BHK flat at Peerzadiguda worth Rs 1 crore and a high-end car. He also gave away huge amounts of money to his associates and managed to stock raw material in the Uppal godown,” a cop said.
Apart from seizing Rs 21.2 lakh, cops recovered chequebooks, machines and raw materials from the godown all worth Rs 5 crore. Sreekanth was booked under criminal breach of trust and cheating case apart from relevant sections of Prize Chits And Money Circulation Schemes Act and Telangana Protection of Depositors of Financial Establishment Act. Police said the accused, who floated four fake companies between 2009 and 2011 and cheated depositors, have eight cases registered against him in various police stations in Telangana and AP.
Sanku Bhaskar Yadav, manager, and Lanka Priya, administrative officer, were arrested. A hunt is on to nab four associates and Sreekanth’s wife Ahalya.
Sreekanth, a resident of Peerzadiguda, has been running Green Gold without obtaining licences and permissions from the authorities concerned and offering unbelievable schemes to depositors with an intention to cheat them. “If someone purchases a machine of Rs 1 lakh, he gets 40 kg groundnut oil and 200 kg peanuts for extraction of groundnut oil. After extracting the oil, the firm pays Rs 10,000 towards allowance and Rs 5,000 for job work for a period of 24 months. Similarly, if someone purchases Rs 2 lakh worth machine, Sreekanth promises Rs 20,000 allowance and Rs 10,000 towards job work,” said Mahesh Bhagwat, commissioner of police.
Bhagwat said luring people under the guise of such schemes, Sreekanth, who was MD of the firm, induced agents and stock point holders to trap more customers into Green Gold MLM racket. “He expanded his business to AP, Karnataka and Maharashtra too,” said the CP. If an agent managed to enrol 50 customers, the team members were promised an incentive of Rs 25,000 per month for a period of 12 months and if the agent managed to enrol 200 customers, the team members were lured with Rs 50,000 a month.
During the preliminary investigation, cops have identified 1,385 customers in Rs 1 lakh scheme, 144 customers in Rs 2 lakh scheme, 19 customers under Rs 5 lakh and four customers in Rs 10 lakh scheme. “With the money, Sreekanth purchased a 3BHK flat at Peerzadiguda worth Rs 1 crore and a high-end car. He also gave away huge amounts of money to his associates and managed to stock raw material in the Uppal godown,” a cop said.
Apart from seizing Rs 21.2 lakh, cops recovered chequebooks, machines and raw materials from the godown all worth Rs 5 crore. Sreekanth was booked under criminal breach of trust and cheating case apart from relevant sections of Prize Chits And Money Circulation Schemes Act and Telangana Protection of Depositors of Financial Establishment Act. Police said the accused, who floated four fake companies between 2009 and 2011 and cheated depositors, have eight cases registered against him in various police stations in Telangana and AP.
Sanku Bhaskar Yadav, manager, and Lanka Priya, administrative officer, were arrested. A hunt is on to nab four associates and Sreekanth’s wife Ahalya.
No comments:
Post a Comment