HYDERABAD: The Enforcement Directorate (ED) has arrested Abhilash Thomas and C A Anzar from Bengaluru, who are the co-founders and owners of Indus Viva Health Services, in a Rs 1500 Crore Multi-level Marketing (MLM) Scam which pertains to cheating around ten lakh investors across the country.
The ED initiated an investigation based on a case registered with Cyberabad police at Gachibowli police station. Cyberabad police had busted this fraud in March 2021 and arrested 24 persons. They have also then frozen the bank accounts of the company in which around Rs 20 crore has been deposited.
According to ED, the company is into a multi-level marketing scam having an illegal pyramid type structure and is working under the guise of Direct Selling Business. The company engaged a large number of distributors and did rigorous marketing about the commission schemes of the company stating that there is a great opportunity for quick and easy money by becoming members and then, in turn, making further enrollments under one’s downline in the right side and left side in a binary manner.
ED said, in order to project their fraud pyramid scheme as a legitimate business, they introduced some products which were by their own admission valued at only 20 percent of the sale revenue and in reality are completely worthless. The membership fee paid by new clients used to pay commission to old clients. By giving false promises and inducements, the company enrolled around Ten Lakh members and collected around Rs.1500 Crore since its inception in 2014.
During the investigation, it is noticed that CA Anzar and Abhilash Thomas floated subsidiary companies in Indusviva Group and diverted the funds to these entities, and also blatantly siphoned off the collected funds into their personal accounts. The diverted funds were used to acquire properties and assets in the name of individuals and companies. The accused were produced before the Special Court for PMLA cases and have been remanded in judicial custody.
Further investigation is under progress, said ED.