The Enforcement Directorate (ED) has attached assets worth ₹66.30 crore of Indusviva Health Sciences Private Limited and others in connection with a ₹1,500-crore multi-level marketing scam.
The company had enrolled around 10 lakh members from whom the funds were collected. The assets of its chairman, C. A .Anzar, have also been attached.
The ED probe is based on a First Information Report registered by the Cyberabad police, alleging that the company indulged in the scam on the pretext of direct selling business. It engaged a large number of distributors and promised opportunities for making quick money by getting more members enrolled for the pyramid scheme.
In order to project it as a legitimate business, the accused persons would offer some substandard products, valued at only 20% of the sale revenue, to the members.
The membership fees collected from the new members were used to pay commissions to the old ones.
The agency found that the company chairman and its chief executive officer, Abhilash Thomas, allegedly diverted funds to a subsidiary, other related entities and their personal accounts.
Immovable assets worth ₹50.47 crore were acquired in the name of companies and individuals. The agency also tracked down 20 bank accounts having a total balance of ₹15.83 crore. All these properties have been attached.
In December last year, the ED had arrested both the accused, who are currently in judicial custody.
