MLM scam: Manager of fraudulent firm held

CHENNAI: A special investigation team (SIT) of Tamil Nadu police on Friday arrested the manager of two network marketing companies for allegedly defrauding the public to the tune of several crores by floating unregulated multi-level marketing (MLM) schemes.

A month ago, the SIT had arrested Ramesh Kumar, the MD of Elfin E-com and Sparrow Global Trade, who had been absconding. On Friday, police arrested Ananda Padmanaban, the manager of the firms who was one of the main accused in the scam.

Police said that the Tiruchy-based company, Elfin E-com, which had offices in Madurai, Sivaganga, Ramanathapuram, Tirupur and Chennai, convinced the public to invest money promising exponential returns. For some customers, they even promised lands, police said.

Ananda Padmanaban was produced before the Special Judge of Tamil Nadu Protection of Interest of Depositors (TNPID) Court, Madurai, and remanded in judicial custody. The SIT was formed on the orders of the DGP as per the direction of the Madurai bench of the Madras High Court to look into the complaints against the firms.

The allied firms of the company, 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 its affiliated Aram Janaka Sangam Trust, Aram TV Channel, and Tamil Rajjiyam Newspaper have all been registered in more than 10 districts, including Chennai, Tiruchy, Thanjavur, Ramanathapuram, Sivaganga, Virudhunagar, Perambalur and Tirupur.