Under the Prevention of Money Laundering Act (PMLA), 2002, the Directorate of Enforcement (ED) has detained C A Anzar and Abhilash Thomas, both Bengaluru residents who are the co-founders and owners of the Indus Viva MLM Pyramid Scheme in connection with an Rs. 1500 crore multi-level marketing scam.
Based on FIR No. 124/2021 filed by Gachibowli PS, Cyberabad, the ED opened an inquiry. The firm operates under the pretence of a direct selling organisation 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 returning customers. Since its founding, the company has enrolled about 10 million members and earned about Rs. 1500 billion by making false promises and offering incentives.
It was discovered during the PMLA inquiry that C AAnzar and Abhilash Thomas created subsidiary firms inside the Indusviva Group, diverted monies to these organisations, and then shamelessly transferred the funds to their personal accounts. The misappropriated cash was used to buy real estate and other assets in the names of people and businesses. The accused were presented before the PMLA Special Court in Rangareddy, and they have been remanded to judicial detention for 14 days starting on December 16 and lasting until December 30, 2021. Further research is now being conducted.
