After Abhaya Gold and others, now it’s the turn of Agri Gold to dupe its customers
Fraud firms thrive on people's ignorance
Hyderabad: The lack of awareness among public, particularly the middle-class, has become an investment for multi-crore companies that illegally conduct money collection schemes leading to scams.
After Abhaya Gold, Akshaya Gold, Prathiba Gold and others, now it’s the turn of Agri Gold to dupe its customers to a tune of thousands of crores. The company allegedly cheated majority of its agents and customers in Andhra Pradesh and Karnataka by not repaying them the promised amounts. Now, the Agri Gold investors believe that the company managed to establish a huge network through agents to draw money in the name of schemes.
Investigating officers said that the company invested everything it received in land and some other ventures. “These companies take advantage of the innocence of rural people who have less knowledge of banking and finance. The companies establish village-level network through agents who do the job of convincing people and get them to join the group,” said a banking professional.
RBI warns public of fraud cos:
The Reserve Bank of India has now cautioned the public against multi-level marketing scams. Income under such schemes majorly comes from enrolling more and more members from whom hefty subscription fees are taken rather than from the sale of products they offer, the RBI said in a recent official release, warning people against making any sorts of cash deposit.
A Senior police official said, that if any private firm offers higher returns with investments and a commission for enrolling others, that company could fail if levels within the payment pyramid fail.
Officials from India’s top bank have also declared that acceptance of cash from money circulation groups, multi-level marketing models or pyramid schemes is a cognisable offence, under the Prize Chit and Money Circulation (Banning) Act of 1978. Police has added that firms offering such schemes will be booked for cheating and criminal conspiracy, under various IPC Sections.
Investigators say, almost all victims lured into such schemes were blinded by greed and hopes for higher returns. “If some company is offering an abnormal profit, people should always be doubtful,” said an officer.
( Source : dc )
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