Hyderabad: The Enforcement Directorate (ED) has attached assets worth Rs 277.97 crore of Noida-based eBIZ.Com in a multi-level marketing fraud case. The main accused — Pawan Malhan and his son Hritik Malhan are presently under Telangana police custody.
ED filed a case under the provisions of Prevention of Money Laundering Act, 2002, (PMLA) and the attached assets include residential plots, apartments, farmhouses and commercial buildings situated in Delhi and Noida. It also includes bank balances of Pawan and Anitha Malhan, directors of eBIZ.com.
The officials have identified 29 immovable properties purchased at the cost of Rs 34.60 crore and attached bank balances amounting up to Rs 242.25 crore lying in 124 accounts maintained in the name of the company.
The ED initiated investigations under PMLA based on FIR registered by the Telangana State police against the company and its associates/directors for cheating citizens by propagating false promises of earning quick money. They invited members to be a part of their pyramid scheme by introducing worthless products, while the purpose was to masquerade their fraudulent practices, as a direct-selling product company.
The investigations further revealed that the company collected funds from investors, as deposits towards membership through a chain of agents spread nationwide. The funds were illegally diverted to the directors and their family members’ accounts. The accused have collected approx Rs 1,064 crore from 12 lakh subscribers.