Police to track online activities of MLM companies
Moneylife Digital Team 16 November 2011

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.

Vinod Chavan
5 years ago
1 decade 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.
Replied to Das comment 1 decade 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
1 decade ago
One such Fraud Co. is INSTANT FOREX who has disappeared after cheating a lot of Indians.
1 decade 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
1 decade 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.

1 decade ago
One MLM company that is an out-and-out fraud is Tanishka Infotech - http://www.TanishkaInfotech.com

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.
Replied to Dinipc comment 1 decade ago
Why are you saying so about this company?
What is your experience??
1 decade 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.
Free Helpline
Legal Credit