Alina
Hyderabad Busts Massive MLM Scam
Hyderabad Police Bust Rs 5,000 Crore Money Circulation Scam
Focus Keyword: Hyderabad money circulation scheme
Hyderabad police have busted an alleged illegal money circulation scheme worth nearly Rs 5,000 crore, leading to the arrest of six accused involved in promoting a multi-level marketing (MLM) network operating under the guise of direct selling.
The accused were arrested from multiple states, including Kerala, West Bengal, Delhi, and Uttar Pradesh, in connection with three FIRs registered in Hyderabad.
Six Arrested in Multi-State Financial Fraud
Addressing the media on Thursday, June 11, V. C. Sajjanar said the accused were allegedly promoting IGNITE, an international money circulation network, through its Indian front company, Indi Konnect Ventures Pvt Ltd.
Among those arrested are an IGNITE recruiter and team leader, along with two directors of the company, officials said.
According to the police commissioner, swift police action helped prevent a large-scale financial fraud that could have reached nearly Rs 5,000 crore, potentially affecting thousands of unsuspecting investors.
Scheme Operated Under Direct Selling Model
Police investigations revealed that the accused allegedly marketed the scheme as a direct selling and multi-level marketing (MLM) business, attracting people with promises of high returns and financial independence.
Victims were reportedly encouraged to recruit more members into the network, a common feature of pyramid-style money circulation schemes. Authorities suspect the operation spread across multiple Indian states through seminars, digital promotions, and referral-based commissions.
Officials stated that the business model allegedly violated financial and consumer protection laws by operating an unauthorised money circulation system.
Multiple FIRs Registered in Hyderabad
The case came to light after complaints were filed, leading to the registration of three FIRs in Hyderabad. Following an investigation, police teams launched coordinated operations across different states to trace and arrest the accused.
The Hyderabad Police are now examining financial transactions, company operations, and the wider network to determine the scale of the alleged fraud and identify other possible individuals involved.
Police Warn Public Against Illegal Investment Schemes
Police officials urged citizens to remain cautious about investment schemes promising unusually high returns through recruitment-based earnings.
Authorities advised people to verify whether a company is legally registered and compliant with Indian financial regulations before investing money in direct selling or MLM businesses.
The investigation is ongoing, and more arrests are likely as police continue to probe the financial trail and organisational structure of the alleged network.
Disclaimer: This article is based on police statements and preliminary investigation details. The accused are presumed innocent unless proven guilty in a court of law.
