The Crime Branch Economic Offences Wing, Kozhikode, arrested the Managing Director of the ALGA Royal Life, a multi-level marketing company, from a house in Thammanam in Kochi on Tuesday. The arrested person is Praveen Gopalan Nair, 36, a native of Kollam. According to Venugopal, DySP, Crime Branch, the AlGA Royal Life company was selling Ayurveda products at exorbitant rates.
The CB had registered a case against Praveen and the company on the basis of a complaint from Suprabha who was allegedly siphoned off Rs 12 lakhs by the company. A case for violation of the Prize Chits and Money Circulation Schemes (Banning) Act of 1978 was registered against the company. The company allegedly collected around Rs 52 crore from the public and returned only Rs 46 crore, siphoning off Rs 6 crore. The CB had raided and sealed the office of the ALGA which was operating near Aluva palace six months ago. After the raid, Praveen had been hiding at his friend’s place at Thammanam.
On the basis of a tip-off, the police raided the house and took Praveen into custody. He will be produced before the Kozhikode CJM on Wednesday.