HYDERABAD: The Crime Investigation Department (CID) on Monday cautioned people of the State against joining money circulation schemes being operated in the guise of Multi-Level Marketing Schemes (MLM) or Network Marketing (NWM).

CID Superintendent of Police (Economic Offences Wing) V.C. Sajjanar, in a press release said, of late, many companies had started luring gullible people to make money claiming themselves as MLM or NWM agencies. "Enrolment of members for making quick or easy money is nothing but money circulation scheme," he said. Such schemes were banned under the Prize Chits and Money Circulation Scheme (banning) Act, 1978.

Misleading prices

According to Mr. Sajjanar, some companies camouflaged their operations saying they were selling cosmetic products, computer spare parts or some other consumer goods. "The pricing policy of their products itself is misleading. Sale of consumer goods in the name of multi-level marketing is only to mislead people and cover up their cheating act," he observed.

Some companies try to boost their image by offering donations to charitable and voluntary organisations. In any MCS or MLM or NWM plans, individuals are asked to pay some amount ranging from Rs. 5,000 to Rs. 50,000. Later, the new members should get two to four new members enrolled. If they succeed, they get back the money in the form of commission and thus the chain goes on.

Appeal to people

He appealed to people to inform the CID about such companies on telephone numbers 040-23232889 or 040-23237474 or 040-23237575 or send e-mail to speow@cidap.gov.in

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