Hyderabad: A private company offering a Multi-Level Marketing (MLM) scheme had allegedly cheated a sum of more than Rs 1,000 crore from over seven lakh people, stated Cyberabad Police. Earlier, police had registered various cases against eBiz.com Pvt Ltd., at Warangal and Adilabad in Telangana and other cases across the country.

The press note issued by the Cyberabad police read: “eBiz.com Pvt. Ltd is a Money Circulation company (MLM Company) established in 2001 based in Noida in Uttar Pradesh. It was registered with Registrar of Companies (ROC) in New Delhi. Its Managing Director is Pavan Malhan. His wife Anitha Malhan is a director and his son Hitik Malhan looks after the company affairs. The Company has got around 7 lakhs representatives as its members. The promoters give motivational lectures to the public especially targeting students and unemployed youth stating that there is a business opportunity project which will yield huge profits to them. Their main focus was to enroll students.”

In connection with the case, police had arrested one person and a case was registered against him under the various sections of the Indian Penal Code including Sections 406 (Criminal breach of trust), 420 (Cheating), 506 (Criminal intimidation).

Explaining how the promoters steal the money, a police official told The News Minute, “The promoters trap the newcomers (students) stating that they will be a part of the eBiz ‘kingdom’ where they can build their own future. They say that if the newcomers who paid money don’t like eBiz business packages, they can claim their refund within a month. But in fact, the promoters will drag the one-month period by giving motivational classes, training sessions and also providing books.”

The police added that the person who referred the newcomer to the company would become the representative. The representatives are then asked to enroll three more members in order to receive the money. The company which was established in the year 2001 follows the pyramid business model. As per this model, the ones at the top receive larger commissions than the ones at the bottom of the pyramid.