Unregulated MLM Schemes: Alleged Multi-Crore Fraud by Company Targets Public
Elfin E-com’s Absconding Executive Arrested: SIT Cracks Down on Multi-Crore Fraud
A breakthrough in the investigation led the State Economic Offences Wing (EOW) Special Investigation Team (SIT) to apprehend Raja, also known as Alagarsamy, a senior executive of Elfin E-com. The company stands accused of orchestrating an unregulated multi-level marketing (MLM) scheme that allegedly defrauded the public of several crores.
Raja, who served as the managing director of Elfin E-com, had evaded arrest for an extended period, violating bail conditions. In July, the SIT successfully apprehended him and presented him before the Special Judge of the Tamil Nadu Protection of Interest of Depositors (TNPID) Court in Madurai. Subsequently, he was remanded to the central prison in Madurai.
Earlier in February, Ramesh Kumar, another managing director of Elfin E-com and Sparrow Global Trade, was arrested by the EOW. Like Raja, Kumar had also been on the run. Elfin E-com, based in Tiruchy with offices in Madurai, Sivaganga, Ramanathapuram, Tirupur, and Chennai, allegedly persuaded individuals to invest money with the promise of exponential returns, even going as far as offering land in some cases.
The formation of the SIT followed orders from the State police chief, prompted by complaints against the companies filed at the Madurai bench of the Madras High Court. The affiliated firms, including Sparrow Global Trade, JB Orient Tech Marketing India Pvt Ltd., RM Wealth Creation Pvt Ltd., Infy Galaxy Marketing India Pvt Ltd., Aram Janaka Sangam Trust, Aram TV Channel, and Tamil Rajjiyam Newspaper, are registered in multiple districts across Tamil Nadu.
The recent arrest marks a significant development in the ongoing investigation into Elfin E-com’s alleged fraudulent activities, shedding light on the multi-crore scam that has impacted numerous individuals across the state.