KOZHIKODE: Corporate Deceptions, a book by economic offences investigator P.P. Sadanandan, would be released soon. The book focuses on the history of the money-chain marketing companies, how they endanger the economy of various countries, global and Indian scenario, the loopholes in the law that still lack sufficient teeth to eradicate them and suggestions for legislation to strengthen the system against such offences.
The postgraduate in economics, now a DySP in Kannur, is known for his penchant in dealing with money chain cases and support to the prosecution with logical backup. During his earlier stint as DySP (crime detachment) at Vadakara, he had registered 28 cases against ‘Tycoon’, a multi-level marketing company, and arrested kingpins. Mr Sadanandan told DC that the book was an attempt to explain the grey areas in legal proceedings that still confuse many.
“Even today many multi-million companies are engaged in this kind of business called MLM (multi-level marketing) or direct selling. The archetype is Ponzi scheme by which the earlier investors in the chain would be given back the money from the investment of lower level members. The Aadu-Thekku-Manchiyam and Total4U are some examples. All the countries across the globe had declared such schemes as illegal as the schemes would break at a later stage.”
“Then came the pyramid plan which is also called MLM, claimed as a reliable financial solution. Under this scheme, one person would enrol two under him, and these two would enrol four…. Thus it goes. This scheme is theoretically feasible but practically impossible.” “The book with twelve chapters is an attempt to explain in detail the origin, influence, threat and the ways to rein in such firms and trends,” he added.
