A man hailing from Manipur was arrested for allegedly cheating nearly 23,000 people from his home state of over R100 crore through a fake, multi-level marketing scam which encouraged them to triple their investment within months, police said on Monday.
Ningombam Raju, who was hiding in Noida, was arrested from Kotla Mubarakpur in south Delhi on Sunday on a formal request to apprehend him by the Manipur Police, said Sanjeev Kumar Yadav, deputy commissioner of police (special cell).
“On December 7, the Superintendent of Police, Imphal, informed us that Raju was wanted in several cases of cheating. He had first come to Delhi in 1995 and worked at the Recon Copiers Pvt. Ltd in Daryaganj,” DCP Yadav said.
After working there for a year, police claimed, Raju had returned to Manipur in 1999 and started working as a service agent for photocopier machines. He again came to Delhi in 2004 and started living in Uttam Nagar.
Between 2004 and 2009, according to police, he kept working as a service agent of photocopier machines and was also selling walkie-talkie phones.
“In 2009, however, he joined a multi-level marketing company whose owner, Irom Satish, also a Manipuri, fled with investors’ money after shutting the company down. A year down the line, he started working at the Welkin Real Tech Pvt. Ltd. which used to lure people promising a 300-% return on a R10,000 investment in three months,” DCP Yadav said.
Police said the company also offered other schemes for shorter durations and lured investors into introducing more members through the ‘chain system’ which promised them 10% of the amount invested by every new member.
“Raju played a pivotal role in alluring many people from Manipur into investing in the bogus company by visiting them and also by arranging for their visits to Delhi,” Yadav added.
In February 2011, Welkin Real Tech Pvt Ltd was closed down after collecting huge amounts from people.