Hyderabad: The Cyberabad police on Tuesday busted Noida based eBiz.com Pvt Ltd, which reportedly ran a money circulation scheme that has collected over Rs 1,000 crore from seven lakh customers after promising to pay them high returns and commission for getting new customers.
The Cyberabad police arrested Hitik Malhan, 31, who runs the business and has frozen Rs 70.5 crore in the bank accounts of the company on Tuesday.
Cyberabad police commissioner V.C. Sajjanar said that the Madhapur police received a complaint from S, Vivek, 20, a second-year college student who paid Rs 16,821 to eBiz to get e-learning products and also got eight other people to join the scheme, but he neither got the products nor any commission as promised.
The case has been registered under Sections 406, 420 and 506 of the IPC and Sections 3, 4, 5, and 6 r/w 2 (C) of the Prize Chits and Money Circulation Schemes (Banning) Act.
Two cases were earlier registered against the company in Warangal and Adilabad, which are also currently under investigation. It is reliably learnt that the company has several other cases against it in places across the country, he said.
Started in 2001, at Noida, near Delhi, eBiz.com offers mostly students business opportunities and an option to learn computer-related courses. Hitik runs the company, while his father Pavan Malhan is managing director and his mother Anitha is the director.
“The company organises lectures to motivate the public, especially targeting students and unemployed youngsters to join the company by paying some money, for which they will be given some e-learning products. Further, they would have to get more people to join and get commissions and thus the chain continues. It will collapse at a certain point of time, as more people joining will become impossible,” said the commissioner.
He further said that the company offers different roles and ranks to its customers based on the number of people they get to join under them in a binary system. The company promotes e-learning courses and holiday packages for its members.
“Hitik Malhan has been arrested. Their office at Noida has been seized and about Rs 70.5 crore in their bank accounts have been frozen. The remaining accused are yet to be arrested and further investigation in the case will continue,” said the commissioner.
