NEW DELHI: The Enforcement Directorate (ED) on Friday attached movable and immovable assets in the form of bank balance, shares and an immovable property (in Chennai) worth Rs 35.55 crore in a multi level marketing case pertaining to Chennai-based RMP Infotec Pvt Ltd.
The case under PMLA was initiated following three chargesheets 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 investigations revealed that RMPIPL earned Rs. 31.67 crores from these ponzi scheme by cheating gullible people. Apart from this, an amount of Rs. 3.85 crores was also diverted from the company in the guise of remuneration during 2001-2012. Thus the total Proceed of Crime made out by the company and its directors worth Rs 35.55 crore and liable to confiscation under PMLA has now been attached vide Provisional Attachment Order No. 02/2017 dated 24.03.2017,” the agency said in a statement.