eBiz MD, son arrested for cheating in MLM
The company promotes e-learning courses, products and holiday packages to the customers who join them by paying money.
Hyderabad: The MD of eBiz.com Pvt Ltd along with his son was arrested on Tuesday by the Cyberabad police for allegedly cheating the public by circulating money in the company, on the pretext of providing commissions for new entrants. The police said that the company’s bank accounts with a credit of `389 crore had been frozen. Four cases were registered against the duo at Cyberabad commissionerate.
Cyberabad police commissioner V.C. Sajjanar said that about four cases were registered against eBiz.com Pvt Ltd company, on the allegations that the company was promoting multi-level marketing and cheating its customers.
The company promotes e-learning courses, products and holiday packages to the customers who join them by paying money. They are then encouraged to recruit others under them, offering huge commissions, he said. The company located at Noida has 17 lakh people as its representatives and the amounts summed up by the company so far is estimated to be around Rs 5,000 crore.
“In pyramid schemes, the primary seller gets commission only if new users join under him. This motivates the public to recruit rather than to sell directly to earn huge money,” he said.