The Hindu : New Delhi News : Couple held for fraud marketing venture

Online edition of India's National Newspaper
Tuesday, Jan 25, 2005

New Delhi

New Delhi

Couple held for fraud marketing venture

By Our Staff Reporter

NEW DELHI, JAN. 24. A racket in duping people of their money through a multi-level marketing venture promising attractive returns has been unearthed by the Economic Offences Wing (EOW) of the Delhi police. The husband-wife duo, who posed as the directors of the company, has been arrested.

In 2004, the Criminal Breach of Trust Section of the EOW had received several complaints against Jag Bhushan Aggarwal and his wife, Kamlesh Aggarwal, in which it was said that they had floated a company, M/S Miracle Associate Private Limited, for providing various services such as bio-magnetic therapy, online computer education and accidental insurance. However, the couple had disappeared after collecting Rs. 5,040 from each of the complainants.

The company had opened in 2001 claiming that their scheme would help the members of the network earn money without having to work much. However, neither was any one provided the services which the company had promised, nor the investors got any return on their money. Following investigations, the police arrested Jag Bhushan and Kamlesh a few days ago. They are currently on police remand. According to the police, the accused, after collecting money from the investors, had disappeared from the Capital. During the three years in operation, they had also opened offices at Lucknow, Kanpur and Dehra Dun and cheated people there using the same modus operandi. The police said they have cheated more than 10,000 people over the past four years and amassed about Rs. 5 crores. Jag Bhushan used to invite people and make an impressive presentation about the scheme. The person visiting the company's offices was convinced that the scheme had actually worked wonders for others. Once convinced, the person paid up Rs. 5,040 and became a member of the network. His next task was to enrol new people on the network against which he was supposed to earn commission.

The police said the victims mostly included housewives, unemployed young men, professionals and salaried persons who wanted to earn extra money Before opening the multi-level marketing venture, Jag Bhushan, a matriculate from Fatehabad in Haryana, had tried his luck as a grain trader. He came to the Capital in 1998 and started a coaching centre at Pitampura. After a couple of years, he opened the fraud venture. So far the police have recovered a Tata Indigo car and Maruti WagonRandfrozen about a dozen accounts.

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