ED arrests Co-Founders of Indus Viva Group in MLM fraud

The Enforcement Directorate arrested two residents of Bengaluru CA Anzar and Abhilash Thomas, who are the Co-Founders and Owners of the Indus Viva MLM Pyramid Scheme, in connection with a Rs 1,500-crore MLM scam.

The company is accused of being involved in a multi-level marketing scam and having an illegal pyramid-type structure which has been working under the facade of Direct Selling Business.

The investigation revealed that CA Anzar and Abhilash Thomas floated subsidiary companies in Indus Viva Group and diverted the funds to these entities, and overtly drew off the collected funds into their personal accounts, which were used to acquire properties and assets in the name of individuals and companies.

In order to conceal their fraud pyramid scheme as a legal business, they introduced some products which were by their own admission valued at only 20% of the sale revenue and are completely worthless in reality. The membership fee paid by new clients was used to pay commission to old clients. By giving false promises and inducements, the company enrolled around ten Lakh members and collected around Rs.1500 Crore since its inception in 2014.

The ED initiated an investigation based on a case registered with Cyberabad police at Gachibowli police station that busted this fraud in March 2021 and arrested 24 persons. The accused were produced before the Special Court for PMLA cases and have been remanded in judicial custody.