Man arrested in multi-level marketing fraud case


Police have arrested a man who had allegedly duped over 22,000 people, mostly from Manipur, of over Rs 100 crore by luring them to invest in his multi-level marketing company.

"Ningombam Raju alias Raju Singh, resident of Kwakeithel Moirangpurel in Imphal West in Manipur, was arrested yesterday by Special Cell from Rishi Nagar in Kotla Mubarakpur in South Delhi," a senior police official said, adding that they had arrested the man following a request from Manipur Police.

During interrogation, Raju told police that he had first joined a multi-level marketing company, owned by two brothers Vinod and Balbir Bagga, at Kakrola but the company was later closed.

Later, he joined another such company whose owner was one Kishanveer, a resident of Dwarka and managed by one Parveen Thora, resident of Najafgarh. His earlier bosses, Bagga brothers also joined the company 'Welkin Real Tech Pvt Ltd'.

"They used to lure the victims by assuring them that their amount would be trebled in three months. They also used to offer other schemes for shorter durations. Further, if any investor introduced new members in the chain, they were assured 10 per cent of the amount invested by every new member," Sanjeev Kumar Yadav, DCP of Special Cell, said.

The joining fee was Rs 1,500 and a member could invest a maximum amount of Rs 10 lakh on one identity card.

Raju played a pivotal role in alluring many Manipuris into investing in this bogus company.

"After collecting heavy amount from unsuspecting victims, he closed the company in February last year and remained in hiding for sometime. He resurface in April at House No A-162, Sector 46, Noida from where he started supplying solar lanterns and inverters from Delhi to Manipur-based customers," Yadav said.

The accused procured an arms licence and a pistol in 2010. The Walther make pistol was purchased for Rs 11.5 lakh but later he sold it at Rs 4.75 lakh when he was hiding and another Erma Werke model revolver was purchased.

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