Hyderabad police unearth Rs 12-crore fraud
A fraud to the tune of Rs 12 crore came to fore following the arrest of a person who allegedly duped customers by organising schemes of multi-level marketing, police said today.india Updated: Jan 07, 2009 01:56 IST
A fraud to the tune of Rs 12 crore came to fore following the arrest of a person who allegedly duped customers by organising schemes of multi-level marketing, police said on Wednesday.
Kanamarlapudi Surendra Babu alias Gupta was arrested based on a complaint of a customer that the former was cheating people with his marketing schemes, a senior police official said.
Surendra Babu, a native of Guntur district established a company Niranthara Amrutha Varshini Marketing Pvt Ltd in Hyderabad in 2006 and got it registered with the Registrar of Firms, Detective Department, DCP Praveen Kumar said.
Babu initially attracted people by conducting meetings at his office and lured the gullible customers by offering high returns on various schemes, he said.
Initially, he started a scheme in which the customers have to purchase a home appliance product by paying Rs 125. Subsequently the same customer had to introduce three new customers for which he would get Rs 75, Kumar said.
Gradually, he upgraded the schemes and made the customers believe that his company would give Rs 1,000 per month to them for 12 months.
Surendra Babu initially spread the schemes among the customers successfully and also paid the monthly benefits to the first batch. Subsequently, he winded his business without intimating the customers and absconded.