: Police have uncovered an alleged multi-level marketing (MLM) fraud worth more than ₹100 crore, accusing a network masquerading as a direct-selling company of duping around 60,000 people through a pyramid scheme, police commissioner Raghubir Lal said on Monday.
Event Context
Police recovered six mobile phones, a CPU, ₹3,600 in cash and documents believed to be linked to the operation. The accused were produced before a court, while investigators continue to trace the company’s bank accounts, its nationwide network of agents and the total proceeds of the alleged fraud.
Team Analysis
Police said job seekers from several states were called to Kanpur on the pretext of employment. On arrival, they were allegedly persuaded to invest in the company and asked to expand the network instead of being given jobs.
The racket allegedly operated through Win Maker Ayurveda Private Limited. A joint team of Hanumant Vihar police and the Crime Branch arrested six people linked to the company.
Members were supplied with health and daily-use product kits in return for their payments.. Lal said investigators were also examining whether some of the products had been manufactured or marketed without the required licences or adequate testing, raising concerns beyond the alleged financial fraud.
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According to Lal, the network lured unemployed youth and others with promises of jobs and monthly earnings of ₹20,000 to ₹25,000. Prospective members were allegedly asked to pay ₹15,000 to ₹30,000 as registration and joining fees before being encouraged to recruit others into the scheme.
Investigators said the operators often created two membership IDs in the name of a single individual, charging about ₹12,000 for each. Members’ earnings were allegedly tied to enrolling new recruits, a defining feature of a pyramid scheme.
