Over Rs 70 crore worth of deposits of a Noida based Multi Level Marketing firm, including its two directors, have been frozen for allegedly cheating the public of about Rs 1,000 crore, police said here Tuesday.
They said that Hitik Malhan, in charge of the day to administration of the company, was being questioned over a case booked against the company recently under the 'Prize Chits and Money Circulation Schemes (Banning) Act, 1978.'
eBiz.com Pvt. Ltd, an MLM firm set up in 2001 at Noida in Uttar Pradesh, has around seven lakh representatives as members, police said in a release, adding that the amount cheated from the people was expected to be more than Rs 1,000 crore.
"The eBiz business model is a simple pyramid scheme in which early entrants earn money and as the number of representatives increases, finding more representatives (New Comers) to join becomes difficult or impossible, the release said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)