The Cyberabad Economic Offences Wing arrested the managing director of multilevel marketing company eBIZ and his son from the company’s Noida office on Tuesday, August 20 for an alleged Rs 5,000 crore fraud.

“Pavan and Hitikh Malhan were arrested from Noida, while they were trying to escape from the company,” a senior police officer said, assuring of more arrests to be made soon, reported The New Indian Express.

A team of Hyderabad police also seized documents from the company’s Noida office a day after they were arrested. Cases have been registered against the company nationwide.

Cyberabad Police Commissioner VC Sajjanar said the company’s operations were prevalent in Hyderabad, Bengaluru, Chennai, Maharashtra, Jammu and Kashmir, Delhi and other cities. The fraud came to light after they cheated a Hyderbad student.

“We again appeal to the public not to fall prey to such money-circulation schemes, which are targeting women, retired persons, students and unemployed youth. The products are just camouflage, and the real motive is operating money circulation schemes, which are banned in India. We have sealed the company head office, and an amount of Rs 389 crore was frozen in the company’s bank account. During the investigation, it was found that Pavan as MD, his wife Anitha as director and son Hitikh looked after the company’s affairs,” the official added.

According to the police, the accused used to target students and unemployed youths and lure them to invest in eBiz which they portrayed as a profitable opportunity.

Once customers enrolled by paying a token amount a username and password would be generated. They also attracted students claiming that their money invested in the company’s account would be doubled and returned after a month. They claimed that students could claim a refund of their money within a month if the business didn’t work.

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