ED files charge sheet in fraud case against Chennai firm’s directors

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The Enforcement Directorate (ED) on Wednesday said they have filed a prosecution complaint (charge sheet) against a Chennai-based private company and its directors in a multi-level marketing corruption case to the tune of Rs 35.55 crore.

The charge sheet was filed aqgainst RMP Infotec Private Ltd before the Visakhapatnam special court, Andhra Pradesh, which has taken cognisance of the matter.

The ED began the probe in a money laundering case on the basis of various FIRs registered by the Andhra Pradesh Police against the private company and its directors, for allegedly cheating people to the tune of Rs 35.55 crore.

The ED, in the investigation, found that the company had been involved in a banned and illegal business under the Prize Chits and Money Circulation Schemes (Banning) Act, and has lured innocent people by promising unrealistic returns on their multi-level marketing business.

The firm was reportedly incorporated in 2012 and since then the company has been engaging in such illegal and banned business by luring the distributors with easy and quick money promising every member would get money between Rs 1,000 to 1,30,000 per week.

The firm was buying goods at a much lower value than the MRP, at nearly 40 per cent of the it, and selling the products at the MRP, thus making 60 per cent gross profit.

The members who have enrolled themselves in the company were made to purchase the products at a much higher value than the purchase value of the company and a part of the profit earned by the latter was shared as incentives and the remaining profit was retained by it.

“Therefore, the said profits earned by RMP Infotec Private Lted as reflected in their books of accounts, shares, bank deposits and immovable properties belonging to the former and its directors worth the total POC of Rs 35.55 crore were attached under the Prevention of Money Laundering Act and the same will be confiscated.”

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