MLM fraud case accused held from B'luru hideout

HYDERABAD: A key accused involved in operating a multi-level marketing (MLM) company, V-Empire, which allegedly duped 163 investors of Rs 3 crore and operating out of Swapnalok Complex, Secunderabad, has been arrested from his hideout in Bengaluru.
Central Crime Station (CCS) police on Monday arrested 32-year-old Ch Upendranadha Reddy alias VC Upendranath Reddy for his alleged role in four cheating cases.He was remanded in judicial custody on Tuesday.
Gutted Swapnalok con base, 9 linked to bogus firm held
Police have so far arrested nine accused in four cases. A fire broke out at an office at Swapnalok Complex in March and six persons associated with the MLM firm perished in the accident.
Four cases were registered by Mahankali police since March 2023 against QNet, Vihaan Direct Selling Pvt Ltd, V-Empire, G Rajesh alias Rajesh Khanna, Upendrana-dha Reddy and others. The cases were transferred to the CCS police station.
According to assistant commissioner of police N Ashok Kumar, 12 accused established V-Empire, a bogus company, at Swapnalok Complex, and collected money from unemployed youth by promising high returns.
"The accused, Rajesh Khanna and VC Upendranath Reddy in collusion with others, operated an illegal pyramid scheme disguised as a direct selling business. They conducted motivational classes and lured victims in the name of e-commerce busine-ss. They promised monthly returns ranging between ₹20,000 and ₹60,000 on investments ranging ₹50,000 to ₹1.5 lakh," the ACP added.
During the investigation, police recorded the statements of 163 victims, whose collective loss was to the tune of ₹3 crore. Additionally, 35 bank accounts belonging to the accused persons and Vihaan Direct Selling Pvt Ltd, having a balance of ₹54 crore, have been frozen, he said.
After the investigation, the number of accused in the case has reached 15 and so far police arrested nine of them, including Rajesh Khanna and Reddy. Rajesh was arrested in May. According to the CCS police, pyramid schemes were strictly prohibited by the state government's Telangana Direct Selling guidelines of 2017.
"These guidelines are designed to protect the public from fraudulent or deceptive practices in direct selling. If you come across schemes that promise high returns with minimal or no risk, it is advisable not to get involved in such activities. Instead, you should exercise caution and report any suspicious schemes to the nearest police station or appropriate authorities. By reporting these schemes, you can contribute to safeguarding the interests of the public and prevent others from falling victim to potential fraud," police said.