MLM scam: Director of fraudulent firm held

CHENNAI: A special investigation team (SIT) of Tamil Nadu Police arrested Ramesh Kumar, managing director of Elfin E-Com Private Limited and Sparrow Global Companies, for allegedly defrauding the public to the tune of crores by floating unregulated MLM (multi-level marketing) schemes through the firms.

ELFIN E-Com Pvt Ltd, which had offices in Madurai, Sivagangai, Ramanathapuram, Tirupur, Chennai, and Pondicherry and its headquarters in Trichy Mannarpuram. The firm defrauded the public by taking their money while promising them exponential returns on their investments. For some customers, they even promised lands, the police said.

The allied firms of Elfin-Sparrow Global Trade, JB Orient Tech Marketing India Pvt Ltd., Madurai, RM Wealth Creation Pvt Ltd., Coimbatore, and Infy Galaxy Marketing India Pvt Ltd., Chennai, and their affiliated Aram Janaka Sangam Trust, Aram TV Channel, and Tamil Rajjiyam Newspaper have all been registered in more than 10 districts, including Trichy, Thanjavur, Ramanathapuram, Sivaganga, Virudhanagar, Perambalur, Perambalur, Tirupur, and Chennai.

A Special Investigation Team was formed on the orders of the Director General of Police, as per the direction of the Madurai bench of the Madras High Court, to look into the complaints against the firms.

Investigations revealed that these companies defrauded the public by getting deposits in unregulated schemes in an MLM scam. Ramesh Kumar, managing director of Elfin, had been absconding for a long time, evading arrest. He was apprehended on February 15 and produced before the Special Judge, TNPID Court, Madurai, and remanded to judicial custody.