ED attaches Rs 66.30 cr assets of Indusviva Health Sciences, its Chairman in Rs 1,500 cr Multi-level Marketing Scam
Feb 04, 2022
New Delhi [India], February 4 : The Enforcement Directorate (ED) has attached assets worth Rs 66.30 crore of Indusviva Health Sciences Private Limited, its chairman CA Anzar and others in a Rs 1,500 crore Multi-level Marketing Scam, the agency said on Friday.
The provisional attachments were made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
ED initiated a money-laundering investigation on the basis of a First Information Report (FIR) by Gachibowli police station in Hyderabad.
"The company is into multi-level marketing scam having illegal pyramid type structure and is working under the guise of Direct Selling Business," said the ED.
The company engaged a large number of distributors and did rigorous marketing about the commission schemes of the company stating that there is a great opportunity for quick and easy money by becoming a member and then in turn making further enrollments under one's downline on the right side and left side in a binary manner, it said.
In order to project their fraud pyramid scheme as a legitimate business, the federal agency said, the accused introduced some products which were by their own admission valued at only 20 per cent of the sale revenue and in reality are completely worthless.
"The membership fee paid by new clients used to pay commission to old clients. By giving false promises and inducements, the company enrolled around 10 lakh members and collected around Rs 1,500 crore since its inception."
During the investigation under PMLA, the ED said, it is noticed that CA Anzar, Chairman of Indusviva and Abhilash Thomas, CEO of Indusviva, diverted funds to the subsidiary company and their other related companies and to their personal accounts.
"These funds were utilized to acquire immovable assets which are identified to the tune of Rs 50.47 crore in the name of the companies and individuals. Further, movable properties are also identified in the form of bank balances to the tune of Rs.15.83 Crore lying in 20 bank accounts of Indusviva, its chairman and related companies. All these properties have been provisionally attached by ED," said the agency.
Earlier, CA Anzar and Abhilash Thomas were arrested by ED on December 15 last year and presently, they are in judicial custody.
