The Cyberabad Economic Offences Wing on Tuesday busted a financial racket run by a Noida-based money circulation firm eBIZ.com and arrested its managing director and his son for allegedly cheating around 17 lakh people through money circulation schemes to the tune of Rs 5,000 crore.
"The money circulation company was established in 2001 with Registrars of Companies (ROC) in New Delhi. Its managing director is Pawan Malhan. His wife Anitha Malhan is a director and his son Hitik Malhan looks after the company affairs. The Company has got around 17 lakhs representatives as its members and the amount of cheating to the tune of more than Rs 5,000 crore," the Cyberabad Economic Offences said in a statement.
The 62-year-old managing director and his son were taken into custody and the company head office at Noida was sealed. Also, deposits worth Rs 398 crore were frozen in their multiple bank accounts, it said.
"The company used to target youths. Initially, a member joins the scheme by paying Rs 16,821 to become the member. After this, the member receives 4 per cent commission if he/she brings other persons to the forum," police said.
Acting on a complaint of Mohammed Sharooq, KPHB police had registered a cheating case against the management of eBiz recently. Apart from Sharooq's complaint, three other cases were booked against the firm at various police stations in Cyberabad and an investigation in these cases are underway.