Hyderabad: A major multi-level marketing (MLM) fraud targeting young individuals with promises of quick money has been exposed. In connection with the case, a key accused from Haryana has been arrested, while approximately ₹3 crore lying in multiple bank accounts linked to him has been frozen. Investigators believe the scam could be linked to nearly ₹600 crore, with operations spread across different parts of the country.
According to the probe, the arrested accused, Harish Kumar Singla (61), a resident of Gurugram, was working as a country sales manager in a private company. Along with his associates, he allegedly created a network that lured people with promises of high earnings in a short time. Nearly one lakh individuals were targeted through this scheme, a significant number of them being young aspirants.
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Young Aspirants Targeted With Quick Income Promise
Officials stated that the accused specifically targeted individuals in the 18–24 age group. They were convinced that by joining the company, they could start earning substantial income within a few months. Each participant was required to pay an entry fee of ₹30,000. In return, they were given certain products and instructed to recruit more members in order to earn commissions. As the network expanded, promises of higher returns were used to attract more participants.
To execute the operation at the ground level, a front entity named “Achievers Club” was used, which had set up an office in the Karmanghat area of the city. From here, the recruitment drive and network expansion were systematically managed. Earlier in the case, three other accused — Mohd Akram, Mohd Nouman Raza, and Mohd Aslam — were arrested for acting as local agents and facilitating the operations.
Call Centre Pitched Luxury Lifestyle and Guaranteed Income
Investigators further revealed that a call centre played a crucial role in spreading the fraud. Around 60 employees worked as tele-callers, who were provided with lists of potential targets. They would contact individuals and pitch the scheme by promising “guaranteed income,” “luxury lifestyle,” and “quick wealth creation,” thereby convincing them to invest.
A particularly concerning aspect of the scam is that a large number of victims belong to economically weaker sections. Hoping to improve their financial condition, many individuals even took loans to pay the ₹30,000 entry fee. However, when no real returns were generated, they eventually realized they had been cheated.
Multiple cases have been registered across different police stations in the city against the company and its associates. Authorities are now working to identify other members involved in the network and to assess the actual scale of the fraud. Several suspects are reportedly absconding, and teams have been deployed to trace them.
Expert Links MLM Fraud to Social Engineering
Commenting on such cases, renowned cyber crime expert and ex IPS Prof. Triveni Singh said, “Such MLM and network marketing frauds are entirely based on social engineering. Criminals exploit people’s ambitions and the desire to get rich quickly. Through call centres, fake presentations, and referral systems, they build trust, eventually turning victims into recruiters who unknowingly trap others.”
Experts note that such MLM schemes typically operate on a “chain system,” where initial participants are shown returns to build credibility and attract more investors. However, once the inflow of new members slows down, the entire structure collapses, leaving the majority of participants at a loss.
