The Enforcement Directorate (ED) has attached assets worth over Rs 35.84 crore of two MLM companies running Ponzi schemes in Chennai and Odisha, an official said.
The move was part of the ED’s crackdown against private companies running Ponzi schemes in different states.
Of the total attachment, assets worth Rs 35.55 crore belong to Chennai-based RMP Infotech and of Rs 29.45 lakh to Rajasthan’s Jaipur-based Many Mantra Marketing Private Limited, operating in Odisha.
The case under PMLA was initiated following three charge sheets filed by CID in eight FIRs registered at different police stations of Andhra Pradesh against the company RMP Infotec and its directors including Pravin J Chandan, Rajesh J Chandan and Dilip J Chandan, invoking Section 120-B (criminal conspiracy, 420 (cheating) of the Indian Penal Code (IPC) for operating money circulation scheme ( Ponzi Scheme) by paying commission for enrolling members and selling product kits, which is banned under Prize, Chits & Money Circulation (Banning) Act, 1978. Also, they cheated buyers/distributors by promising huge commissions which are impossible.
“ED attaches assets worth Rs 35.55 Crore under PMLA of RMP Infotech and Rs 29.45 lakh of Many Mantra Marketing,” an Enforcement Directorate official told IANS.
The official said that RMP Infotech and Many Mantra Marketing have been running their Ponzi schemes business in Chennai and Odisha, respectively.