IIT dropouts among 9 arrested in multi-crore fraud case in Hyderabad

Hyderabad: Nine people, including some IIT dropouts, have been arrested in connection with a Rs 30 crore Multi Level Marketing fraud case, police said.

The CEO of the company, its two directors and six others have been arrested and their bank accounts totalling Rs 40 lakh have been seized, a police release said. The company allegedly sold products, including to gain weight.

The scheme involves members enrolling new members, for which commissions were promised, it said.

The nine people were charged various sections of the Indian Penal Code and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, the release said.