Citizens' Issues
Police to track online activities of MLM companies

Promoters of virtual companies like Speak Asia earned crore of rupees using the internet. The authorities are now planning to develop a system to alert people about dubious activities of MLMs

Reacting on the proliferation of multi-level marketing (MLM) schemes and financial losses gullible people are suffering due to this menace, the law and enforcement agencies are planning to keep track of activities that are taking place over the Internet.

According to sources, the agencies are developing certain mechanism in collaboration with Internet search engines like Google, Yahoo and Bing to alert people about dubious activities like MLMs and to keep tab on such money multiplier schemes. However, this cannot be confirmed with top officials.

Earlier, while speaking at a seminar, Rajvardhan, additional commissioner of police, Economic Offences Wing (EOW), Mumbai, warned people about Speak Asia like ponzi schemes and called such schemes a social menace, which is proliferating across the country, especially in rural areas.

Mr Rajvardhan was speaking at a seminar on economic offences. Topics like multi level marketing schemes, forensic accounting to role of serious fraud division in economic offences were covered in the seminar, which was largely attended by officers from law and enforcement agencies.

While he spoke about various such schemes and issue faced during investigation, Mr Rajvardhan refrained from divulging any further information or talking to the press. He called the seminar as a private event even though the formal invitation to media did not say so. Interestingly, most of the information from his presentation is readily available in public domain.

During the seminar a detailed presentation on the various ponzi schemes, their modus operandi and the high income claim they make was made by a senior official. He also touched up on the schemes such as City Limousine, Speak Asia, which have duped people for amounts running in crore.

Talking about the issues faced by the investigating agencies in schemes like Speak Asia, Mr Rajvardhan said these companies are registered abroad and hence it is difficult to trace their money trail.  The number of such schemes are increasing and there websites often claims ISO certification, PAN Card as legal documents. “Such documents do not have much value,” he added.




5 years ago



MATHRUBHUMI report dated 20.11.2011

Office of India infoline raided by the police.

They alleged to have committed offences through the sale of Reliance Insurance. They have reportedly collected Crores of rupees through the sale of Reliance Insurance.



In Reply to Das 5 years ago

Chaavkkad office of India Infoline raid:

Customers cheated

(Manormama news report)

Customers were given false promises that Insurance policy of Rs. I lakh would be given free.

Vikas Gupta

5 years ago

One such Fraud Co. is INSTANT FOREX who has disappeared after cheating a lot of Indians.


5 years ago

Question:- Some fraud companies secured ISO certification? How? Is ISO a fraud?

Answer:- Certifications lead to bribe and dishonesty. They are needed for contract based not relation based economies QED build relations

Question:-Should we take ISO certification seriously?

Answer:- it is for law, not for all purposes

(Shri. S.Gurumurthy)

Mohan Das

5 years ago

A few months ago the Director General of Police, Kerala had assured the public that the Police Department would soon publish the photos of Money chain fraudsters in the Police website. But till date nothing has happened.

All MLM fraudsters are misusing the internet. Unless the Police expose these fraudsters, they will continue to cheat the innocent and gullible people.


5 years ago

One MLM company that is an out-and-out fraud is Tanishka Infotech -

A few months ago, while interviewing a young girl for a job, I first came across this scam.

Later I received an email from Tanishka Infotech about a Quick-Get-Rich scheme.

I talked to the guys and realized it was a complete fraud and some gullible people were going to lose substantial amounts of money.

Hope Moneylife can carry this forward.



In Reply to Dinipc 4 years ago

Why are you saying so about this company?
What is your experience??


5 years ago

Many of the dubious MLM/chain marketing companies have ISO certification.

Is ISO certification a worthless piece of certificate? I request MONEYLIFE to enlighten the general public and the investors in particular about ISO certification.

2G case: HC notice to CBI on ex-telecom secretary’s bail plea

Former telecom secretary Siddharth Behura, in his bail application, pleaded to the court that the trial in the case has already started and there cannot be any fear of tampering of evidence or influencing witnesses by him

New Delhi: The Delhi High Court on Wednesday sought the Central Bureau of Investigation’s (CBI) response on the bail plea of former telecom secretary Siddharth Behura, arrested for his alleged role in the 2G spectrum case, reports PTI.

Issuing notice to CBI, justice Shali also asked the probe agency to file a status report by 1st December, the date on which the bail pleas of other five accused including DMK MP Kanimozhi are also slated for hearing.

Mr Behura approached the high court, through senior counsel Aman Lekhi, challenging denial of bail to him by the special CBI court which had refused him the relief saying the charges against him and other accused were of “very serious nature”.

Mr Behura, in his bail application, pleaded to the court that the trial in the case has already started and there cannot be any fear of tampering of evidence or influencing witnesses by him.

He also said the apex court earlier, while refusing bail to Ms Kanimozhi, had asked the accused to approach the court for bail after charges were framed in the case.

The trial court had dismissed Mr Behura's bail plea on 3rd November.

Mr Behura, along with former telecom minister A Raja and latter’s private secretary RK Chandolia, was arrested on 2nd February, this year.

Besides Mr Behura and Ms Kanimozhi, the four others who have moved the high court against the special court order denying them the bail are DMK-run Kalaignar TV MD Sharad Kumar, Kusegaon Fruits and Vegetables Pvt Ltd directors Asif Balwa and Rajeev Agarwal and Bollywood producer Karim Morani.


Kingfisher grounds 10-12 aircraft for reconfiguration

Maintaining that no additional flights will be cancelled due to the ongoing aircraft reconfiguration, Kingfisher CEO Sanjay Aggarwal said the changes in the flight schedule will only take place by March, once the reconfiguration process was over

Mumbai: Private carrier Kingfisher Airlines, which has posted a net loss of Rs468.66 crore for the second quarter ended 30 September 2011, on Tuesday said it has grounded 10-12 aircraft for reconfiguration, reports PTI.

Maintaining that no additional flights will be cancelled due to the ongoing aircraft reconfiguration, Kingfisher CEO Sanjay Aggarwal said the changes in the flight schedule will only take place by March, once the reconfiguration process was over.

“Whatever the number of flights are published on the website, we will be flying from today. Changes will happen only after March, when the entire plane revamp will be over,” he told reporters here.

“Overall, we have grounded 10-12 aircraft, or 55 flights, out of the 66 planes. But, we also added some flights by additional frequencies and are starting Mumbai-Udaipur from next month,” Mr Aggarwal added.

The beleaguered company doubled its net loss at Rs468.66 crore second quarter compared to Rs230.81 crore in the July-September quarter of 2010.

The company’s net loss during the first six months of the current fiscal rose to Rs732.21 crore from Rs418.16 crore in the corresponding quarter of the previous fiscal.

“We will be joining the OneWorld Alliance during the first quarter of the calendar year 2012,” Mr Aggarwal said.

On the financial results, a Kingfisher statement said, “This has been a challenging quarter for the industry. The momentum has continued with a demand growth of 20% in the second quarter of 2011-12, however, it has been matched by a capacity growth of 20% putting pressure on the yields for the industry... coupled with a more than 35% rise in fuel price as compared to the same quarter last year.”

EBITDA (earnings before interest, tax, depreciation and amortisation) loss for the quarter stood at Rs23 crore against a profit of Rs307 crore in the year-ago period, while domestic operations saw a 5% increase in revenues during the second quarter compared to Q2 last year.

International operations continued to mature with an 11% rise in revenues. The non-fuel unit cost for international operations declined by 4%, reflecting the cost reduction actions of the airline, it added.

Talking to reporters, UB Group president and CFO Ravi Nedungadi said the company hopes to earn around 3% revenue through the complete aircraft reconfiguration, that is adding business class seats to the all-economy planes.

“We hope to earn 3% more revenue once the complete aircraft reconfiguration is over by March. We see an outgo of under Rs150 crore for this. Our working capital loan request to bankers also includes this,” Mr Nedungadi said.

“As late as last month, the promoters have pumped in Rs150 crore, and around Rs800 crore since January this year...

We need a working capital loan of under Rs1,000 crore,” he said when asked about the fund requirement of the company.

“If the ATF (aviation turbine fuel) is allowed to be imported, then we will be able save 18%-20% of the fuel cost even after paying the fees to the service providers.”

On the rights issue, he said: “We have not moved the SEBI (Securities and Exchange Board of India) for the rights issue. We have a board mandate for Rs2,000 crore rights issue. But it could be a Rs1,000 crore rights issue and Rs1,000 crore GDR (Global Depositary Receipt).”

He added that the company had filed for GDR issue in the beginning of the year with the Luxembourg Stock Exchange, but dropped the idea as the markets suddenly turned negative.


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