The state government on Monday submitted before the Kerala High Court that it was contemplating the introduction of police screening of all the transactions of multi-level marketing business from the beginning itself.
The court had earlier directed the police to screen all the transactions of multi-level marketing across the state. Crime Branch SP P A Valsan submitted that the investigation into the companies is steadily progressing. “As many as 662 cases have been registered with the Economic Offences Wing (EOW) in Kottayam, 298 in Kozhikode and 17 in Kollam in connection with various multi-level marketing activities,” he pointed out.
According to the affidavit, out of the cases, 628 cases have been registered against Nano Excel Enterprises Private Limited, which has collected `3,58,60,51,841 from the public. The amount swindled by Bizarre and Tycoon Empire International is `123 crore and `250 crore, respectively.
In most of the cases, the exact volume of fraud could not be ascertained as the investigation is only half-way through, and the accused including directors of the companies are absconding. The details of the websites and bank accounts of the companies are yet to be collected. The police said that it has registered 26 cases against the petitioner company - RMP INFOTEC Private Ltd, which sought a directive to quash the FIR against its directors.
The state government submitted that the company is doing multi-level marketing through an illegal pyramid money circulation scheme.
The company had offered products of many branded companies. However, the probe team could not come across even a single case where the company had supplied branded items. The company directors are absconding, and all the offices are closed. “They did not cooperate with the investigating agency, and did not reveal any information regarding the amount collected from the public. The agency could not probe into the details since the ID and password of the website was also not disclosed,” the affidavit said.
According to the police, the directors have registered the company by providing a fake address. However, the photographs of the accused who are the directors would be published in the media within two weeks. Appearing for the state, Additional Director General of Prosecution K I Abdul Rasheed said that a probe was conducted with the Tamil Nadu police and found that no case has been registered against the accused in Chennai.
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