Hyderabad: Enforcement Directorate (ED) has attached assets worth Rs 31.63 Crore of multi-level marketing company eBiz.com Pvt Ltd.
ED has so far attached the company's assets worth Rs 277.97 Crore. The company is represented by its director Pawan Malhan and his son Hitik Malhan,
ED initiated an investigation based on FIRs registered by Telangana police against eBiz.com Pvt Ltd and its Directors/Associates for cheating the common public by propagating false promises of earning quick and easy money and inviting the gullible public to become members of their Pyramid Scheme.
What did ED's investigation find?
Money laundering investigation by ED revealed that the company was running a pyramid fraud under the guise of direct selling multi-level marketing network by introducing a few worthless products like CDs containing free computer education packages, suit lengths, etc.
The purpose of introducing such sub-standard over-priced products were only to masquerade their pyramid fraud as a direct-selling product company. To lure more gullible investors, they extensively advertised their commission model in which exceedingly high commissions were paid to existing members for enrollment of new members in the downlinks of the pyramid structure.
The promoters conducted mega conventions and flaunted their lavish lifestyle and used social media like Facebook pages to lure gullible investors. They had collected around Rs 1064 Crore from around 12 lac subscribers through a chain of agents spread across the country. The funds so collected were illegally diverted into the personal accounts of the Directors, their family members, and other associates under various expenditure heads including dividends, high salaries/incentives.
ED has already attached 105 Fixed Deposits, Bank Balances, Mutual Funds, and Gold Jewelry found in the locker of the main accused Pawan Malhan.
Besides, ED had provisionally attached immovable properties purchased at Rs 34.60 Crore and Bank balances amounting to Rs 242.25 Crore lying in 124 different Bank accounts belonging to eBiz.com and its promoters.