Kanpur (Uttar Pradesh): Kanpur Police have uncovered an alleged multi-level marketing (MLM) and pyramid scheme accused of defrauding unemployed youths of an estimated ₹80 crore to ₹100 crore by luring them with fake job offers. According to police, a guest house in the Hanumant Vihar area was being used as a training centre where participants were allegedly taught how to recruit others into the fraudulent network. Six accused have been arrested, while more than 200 youths from Jharkhand, Bihar and Madhya Pradesh were removed from the premises and their statements recorded. Investigators claim the network may have targeted more than 60,000 people across the country.
Police said the guest house had been hosting training sessions for several days, during which recruits were allegedly instructed on how to build recruitment chains and collect money from new members. Most of those attending had travelled to Kanpur in search of employment after being promised stable jobs and attractive salaries.
The investigation began after three young men from Bihar approached the police, alleging that they had worked for the organisation for nearly three months without receiving either salary or commission. They claimed they had exhausted their savings and no longer had enough money for food or even to return home. Acting on the complaint, police raided the guest house and uncovered what they described as a structured recruitment and training operation.
According to investigators, the syndicate operated through franchises under the names Win Maker Ayurveda Private Limited and Dhanvantari Ayurveda, allegedly offering jobs with promised monthly salaries ranging from ₹25,000 to ₹30,000. To make the scheme appear legitimate, candidates were reportedly called for corporate-style interviews before being asked to pay registration and training fees ranging from ₹15,000 to ₹30,000. In return, they were given low-value kits containing products such as soap, oil, clothing and Ayurvedic items.
Police alleged that participants were then pressured to recruit at least two additional members into the network. They were told that expanding the chain would increase their commissions and promotions. Investigators said the organisation had allegedly created 16 hierarchical ranks, including Silver, Gold and Platinum, with claims that members could eventually earn between ₹25,000 and ₹5 lakh per month. Police maintain that the scheme’s primary objective was to generate revenue through continuous recruitment rather than provide genuine employment opportunities.
The arrested accused have been identified as Ravindra Yadav, Kamlesh Kumar, Rohit Shaw, Mangal Shakya, Raju Kumar and Mantosh Paswan. Police said they seized six mobile phones, corporate documents, digital chats, audio recordings, video files and other electronic evidence during the operation. Digital forensic examination of the seized material is underway to identify additional members of the network and trace the flow of funds.
According to investigators, the syndicate is suspected of operating more than 100 training centres across multiple states, including at least five in Uttar Pradesh. Police are also examining the role of centres reportedly operating in Delhi and Noida. A Special Investigation Team (SIT) has been constituted to investigate the alleged masterminds, financial transactions, bank accounts and digital evidence associated with the network.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that pyramid and fraudulent MLM schemes frequently exploit unemployed youths by promising financial independence, rapid career growth and luxurious lifestyles. He advised job seekers to independently verify a company’s legal registration, business model and regulatory compliance before making any payment. He also cautioned that any organisation whose earnings primarily depend on recruiting new members rather than selling legitimate products or services should be treated with extreme suspicion.
Police said the investigation is continuing, and further legal action will be taken based on the evidence collected. The allegations against the accused will ultimately be examined during judicial proceedings, where the prosecution will be required to establish the charges on the basis of admissible evidence presented before the court.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
