eBiz, a multilevel marketing company has been accused of duping 17 lakh people through many money circulation schemes of more than ₹5,000 crore. Its MD, Pawan Malhan and his son Hitik Malhan were arrested in the case. The firm’s head office, which is at Noida was also sealed.
Cyberabad Economic Offences said, “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 action was taken after a certain Mohammed Sharooq registered a cheating case against the management of eBiz. Three separate cases were also booked against eBiz at various police stations in Cyberabad and investigation was going on.
The police had registered a cheating case against the management of eBiz recently on the complaints of Mohammed Sharooq. Apart from his complaint, three other cases were booked against the firm at various police stations in Cyberabad and investigation was going on.
The money circulation firm with around 17 lakh members, was established in 2001 at Noida. Pawan Malhan is the MD while his wife Anitha Malhan was the director and his son Hitik Malhan looks after the company affairs.
The police said, “The company used to target youngsters. Initially, a member joins the scheme by paying Rs. 16,821 to become the member. After this, the member receives a 4 percent commission if he/she brings other persons to the forum.”
According to the police, eBiz fraud was most active in Hyderabad, Bengaluru, Chennai, Jammu and Kashmir, Delhi, Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Goa.