Under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) has provisionally attached assets worth Rs. 66.30 crores belonging to M/s Indusviva Health Sciences Private Limited, its chairman C A Anzar, and others involved in a Rs. 1500 crore multi-level marketing scam.
On the basis of an FIR filed by Gachibowli PS, Cyberabad, the ED opened a money laundering inquiry. The organisation operates as a Direct Selling Business while engaging in illicit pyramid-style multi-level marketing schemes. The company hired a large number of distributors and conducted aggressive marketing regarding the company’s commission structures, claiming that there is a great opportunity for quick money by joining and then going on to make additional enrollments under one’s downline in a binary fashion on the right side and left.
They offered several items that were, by their own admission, priced at just 20% of the sale income and are, in reality, absolutely useless in order to present their fraud pyramid scheme as a respectable business. The membership fee that new customers pay is utilised to pay commissions to return customers. Since its founding, the firm has attracted almost 10 million members and earned about Rs. 1500 billion by making false claims and offering incentives.
It was discovered during the PMLA inquiry that C A Anzar, Chairman of M/s Indusviva, and Abhilash Thomas, CEO of M/s Indusviva, had transferred money to a subsidiary firm, other linked businesses, and personal accounts. These monies were used to purchase immovable property, valued at Rs. 50.47 crores, in the names of businesses and individuals. Additionally, bank balances of Rs. 15.83 billion that is held in 20 bank accounts by M/s Indusviva, its chairman, and connected businesses are also recognised as moveable goods. The ED has attached all of these properties in a temporary manner.
C A Anzar and Abhilash Thomas are now being held in judicial custody after being previously detained by the ED on December 15, 2021. Further research is now being conducted.
