Bengaluru, Mar 6: The police have busted a multilevel marketing scheme racket running under the name Indus Viva and arrested 24 offenders including the CEO, COO of the Bengaluru based company.
Police stated that the offenders have cheated about 10 lakh people, collecting amounts to the tune of Rs 1500 crore.
The bank accounts of Indus Viva Health Sciences Private Limited with Rs 20 crore amount was frozen.
Abhilash Thomas, CEO of Indus Viva, managing company's day to day operations, and Prem Kumar, Chief Operating Officer, Mandalanen Subramanyam, director managing taxation & statutory issues and Imdadulla Shariff, vice-president in-charge of operations, logistics, warehouses and customer care are among the arrested. All four are residents of Bengaluru.
Several distributors were also arrested. CA Anzar, chairman of Olive life sciences and Kuruvila Chacko, director, Indus Viva Health Sciences are absconding.
According to Cyberabad police commissioner VC Sajjanar, Indus Viva enrolls members into its binary schemes with a Rs.12500 fee providing a 100 value points initially. Members have to enroll new members to earn bonuses and are encouraged to make more members in a swift manner to earn more. A member can earn Rs 2,56,000 by making 256 persons join the scheme in nine weeks.
Members are given various fancy designations like Star Distributor, Ruby Executive, Sapphire Executive, Executive Blue Diamond and are offered rewards like laptops, five-star hotel accommodation, foreign tours.
Thus, a member becoming Black Diamond Ambassador by enrolling 10,000 members is promised a Mercedes Benz, Black Diamond Ring & pendant and one week USA trip.
Indus Viva also offers President Club Member Plan under which one can join by paying Rs.1.5 lakh. The company provides them with 50 beauty, health, dietary products priced at Rs 3597 each and in addition offers products worth Rs 25,000 free. A person joining PCMP is attracted with “an opportunity to dine with the CEO in Bengaluru.”
The company conducts star summits annually in prominent hotels in Bengaluru or other cities. They also provide training sessions for members to skill them to make more members join the schemes. They claimed that the company has branch offices in the USA, Uganda and Bangladesh and that they want to expand the business worldwide, Sajjanar told reporters on Saturday.
Indus Viva has its own production unit named Olive Life Sciences located at Nelamangala, Bengaluru. But these health & beauty products are not recognized/certified by any government department liable to be confiscated under the Drugs and Magic Remedies (Objectionable Advertisement) Act 1954.
“Women in particular are targeted by these companies with false claims and blatant lies and thereafter are exploited in different ways. The public is advised not to fall prey to these dubious schemes offering easy and quick money and advised to take the local police assistance if they suspect any such activity,” the economic offences wing sleuths of the Cyberabad police caution.
The Cyberabad cops were acting on a complaint received in Gachibowli PS in February. The complainant stated that lured with an attractive income offer for promoting the company products like coffee, juice, he had invested Rs.12,500 but realized that he was cheated by Indus Viva.
A case was registered under 406, 420 IPC and various sections of the Prize Chits and Money Circulation Schemes (Banning) Act 1978.