Andhra Pradesh: Nine promoters of multi-level marketing firm held in fraud case

HYDERABAD: In their crackdown on unscrupulous multi-level marketing (MLM) schemes, police have arrested nine promoters of a firm for allegedly duping investors by promising them lands on investments, a top officer said today.

"Two cases were filed against Akshaya Gold Farms and Villas Pvt Ltd for cheating under IPC and relevant sections of Prize, Chits and Money Circulation Schemes (Banning) Act and AP Protection of Depositors of Financial Establishment Act in Ongole and Chirala towns of Prakasam district," CID Additional Director General of Police T Krishna Prasad told reporters today.

According to police, Akshya promised agricultural land for investment of Rs 100- Rs 1,000 under the MLM schemes wherein investors were enrolled as members.

He said police froze deposits totalling Rs 10.3 crore in as many 145 bank accounts of the firm and is in the process of attaching properties of the firm spread across eight districts in the state.

Out of 26 accused, police recently arrested nine persons, including D Harinath Babu, the founder and director of the firm, along with other officials, Prasad said.

Of the rest, 12 accused have secured anticipatory bail and five are absconding, he added.

"Despite legal action, promoters of Akshya were continuing to cheat public with promises over land," the top cop said.