Cyberabad Economic Offences Wing in Telangana Tuesday busted a financial racket run by a Noida-based company. The money circulation firm, eBIZ.com allegedly cheated around 17 lakh people through various money circulation schemes of more than Rs. 5,000 crore. The firm's managing director, Pawan Malhan and his son Hitik Malhan were arrested in the case.
Commenting on the development, the Cyberabad Economic Offences said Pawan Malhan's son Hitik Malhan looks after the company affairs.
"The money circulation company was established in 2001 with Registrars of Companies (ROC) in New Delhi. Its managing director is Pawan Malhan. His wife Anitha Malhan is a director and his son Hitik Malhan looks after the company affairs," the Cyberabad Economic Offences said in a statement.
"The Company has got around 17 lakhs representatives as its members and the amount of cheating to the tune of more than Rs. 5,000 crore," it added.
While the financial racket was busted, the 62-year-old managing director and his son were taken into custody.
The company head office at Noida was also sealed. The deposits worth Rs. 398 crore have also been frozen in their multiple bank accounts.
"The company used to target youngsters. Initially, a member joins the scheme by paying Rs. 16,821 to become the member. After this, the member receives 4 per cent commission if he/she brings other persons to the forum," police said.
A cheating case against the management of eBiz was recently filed by the police, on the basis of complaints by Mohammed Sharooq.
Apart from his complaint, three other cases were booked against the firm at various police stations in Cyberabad and investigation was going on.