CB raids 3 MLM companies in Kochi

Mar 06, 2013

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Kochi: The economic wing of the Kozhikode Crime Branch (CB) police raided offices and godowns of three Kochi multi-level marketing companies allegedly operating money chains and seized goods worth Rs 3 crore from them on Monday. The raids were conducted at the offices of Modicare at Kathrikadavu, of DXN on Old Railway Station Road and of K-Link at Palarivattom. The manager of K-Link, Sunil, was arrested.
“Cases have been registered under the Prize Chits and Money Circulation Schemes (Banning) Act of 1978 against the companies as they did chain marketing. Each member of these companies had to add two persons to his network and spread the chain. The members got a commission every time they added people to the network,” said Mr P A Valsan, superintendent of the economic offences wing of the CB in Kozhikode.
DXN and K-Link are international companies based in Malaysia, according to CB sleuths. While DXN has networks in over 40 countries, Modicare is believed to be an Indian company. Its manager is also expected to be arrested soon, but DXN officials are believed to be outside India and and could be taken into custody later.

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