Hyderabad: MLM company MD held for fraud

Hyderabad: A man from Andhra Pradesh reportedly lost money by investing in QNet schemes. He then  established a multi-level marketing (MLM) company allegedly deceiving the public with promises of providing commissions to its representatives for joining others He was arrested by the Cyberabad police on Wednesday.

According to the police, B Srinivas Reddy (28), managing director of SERFA Marketing, was booked in a case at Kukatpally, for running an MLM company.

Srinivas, a computer graduate, hails from Thanem village in Srikakulam district of AP.  He had joined the QNet, invested `13 lakh and suffered serious losses.

“In order to earn his money back, Srinivas started SERFA Marketing in 2018 at Vishakhapatnam, on the lines of sQNet, and opened a branch at Kukatpally in Hyderabad. He lured the public with various schemes providing tour packages, watches, health and dietary products and beauty products, and offered commissions to representatives for making more members join in a chain system. The company has 5,000 representatives now,” said Cyberabad Police Commissioner V.C. Sajjanar.

The commissioner said that the schemes of SERFA are rampant in the Lakshadweep, Andaman and Nicobar islands and also in 16 other states, including Telangana and Andhra Pradesh.

Based on a complaint lodged against him at Kukatpally, Reddy was arrested and a hard disc containing information seized from him. He was produced before a court while efforts are on to nab the other accused persons, he said.