Advocate Mastan Vali

Railway Retired employee's success in Consumer court

2009-09-20T10:53:00.004+05:30

20/9/2009

One retired employee of the Railway department attended the O.P. treatment in Railway Hospital. The expences were Rs.113/-. The department denied to reimburse the said amount. Thereupon the retired employee filed a case in Consumer court and got success.

Eenadu news paper is providing an opportunity to publish the success stories in consumer forums. do write to eenadu news paper.

Becareful with Insurance Agents

2009-09-20T10:30:00.004+05:30

20/9/2009

Becareful with the Insurance Agents. Take the following precautions when you want to deal with the Insurance Agents

1. First ask his Licence Number, so that we can know the details of since how long he has been in the Insurance field and when does his Insurance Licence expires and his ability to explain the details of policies etc

2. Ask him whether Insurance profession is full time or part time to him.

3. Take the details and phone numbers of his Manager and Branch so that we can continue our policies even if the agent changed his agency to some other company.

4. Know the details of Insurance value, premium, maturity value etc.

5. Ask the agent to furnish the illustration details paper with his signature.

6. As per IRDA rules the maximum return should not be shown above 10% and minimum 6%.

7. completely go through the policy document when you receive it.

8. You can cancel the policy within 15 days of its receipt

Consumer's Success over Insurance Company

2009-09-20T10:23:00.003+05:30

20/9/2009

One insured person was run over by train and died. The Post Mortem Certificate revealed that there has been some alcoholic substance in his body.

The promised Insured amount was denied by the Insurance Company that there is a alcoholic substance in the PM Certificate.

The District as well as State consumer Forums held that the Insurance company failed to prove that the deceased took alcoholic substance except presence of alcoholic in PM certificate.

Somany Cheating City Limouzines in Andhra

2009-09-17T09:45:00.010+05:30

17/9/2009
The Sakshi Paper reports that there are so many cheating City Limouzines in Andhra pradesh. Yet no action is being taken by Police as well as RBI officials to check these unscrupulous activities.
The Govt. of A.P. has authorised all Inspectors of Police in the AP State to take action against such illegal activities under RBI Act, 1934. ..click for G.O...

Cheating using Orkut

2009-09-17T09:37:00.003+05:30

Sakshi : 17/9/2009
One person using orkut have cheated somany persons. His modus operandi is to deceive the public with fake IDs and cheat the innocent girls.

Big fraud in the name of computer education

2009-09-16T07:53:00.003+05:30

Eenadu:16/9/09

One Micro Soft Multi media - has collected lakhs of Rupees from the students in the name of computer education and turned its board. As a result several lost their lakhs of rupees.

Rs.200 Cr. Fraud in the name of deposits and different schemes

2009-09-16T07:44:00.005+05:30

eenadu:16/9/2009

Deposits of Crores of Rupees were mobilised by the city Limouzines India Limited and turned its board by cheating the public.

Deccan Chronicle: 16/9/09

City Limouzines India Limited, a finance company, wound up business in the city on Tuesday by duping scores of customers. The quantum of the financial fraud is yet to be ascertained as the police is yet to verify the transaction books.
About 50 customers, who came to know of the fraud, rushed to the city branch office of the firm at Abids.On noticing the office was closed, they approached the Abids police station. They demanded that the company chairman, Mr Vikas Mehta, be arrested and their money returned to them.
The police booked a case against the company at around 8.30 pm under Section 420 (cheating) of IPC.
According to a complaint lodged with the Abids police, Mr Vikas and others floated the firm with its head office in Mumbai. It is alleged that the company was operating with a fake RBI licence since 2006. Its registered office is said to be located in Mumbai.
An investor from Golnaka, Mr M. Srinivas, said the company's regional manager, Mr Wajid Khan, lured them into investing their money. The company had issued preference shares in the name of City Realcom Limited, and lured gullible investors by asking them to invest a minimum of Rs 1,30,000 with a promise that the investor would get a monthly return of Rs 7775 per Rs 1.30 lakh. The company paid interest every month for three years, but its cheques started bouncing since August.
Another victim of the firm, Mr Layk Ali, blamed the police for its failure to check the menace of fly-bynight firms. "The police punish ordinary motorists, but when it comes to financial fraud, they turn a blind eye. The Abids police does know that a fraud company is operating in its vicinity,"he alleged.

Cheating by TV reporter via Blackmail

2009-09-15T07:45:00.003+05:30

Hyderabad : 15/9/2009

Black Mail and cheating by the TV reporter.

One person cheated and black mailed one Advocate and looted cash Rs.1 lakh.

Preplannedly one person called the advocate that one lady is waiting for him at Tarnaka and took photo graphs of Advocate and that lady. Thereafter start blackmailing that he would telecast in TV and demanded and took Rs.1 lakh and again demanded Rs.4 lakh.

Cheating in the name of Ladies emporium

2009-09-15T07:41:00.003+05:30

Hyderabad 15/9/2009

Cheating of Rs.30 lakh in the name of Ladies emporium at Kukatpalli.

People are requested be care of such activities.

Beware at ATM centres and Bank

2009-09-15T07:23:00.004+05:30

Precautions to be taken at Banks and ATM centres:
1.Do transaction with the Banks authorised by RBI
2.Do verify and check your monthly statements
3. Demand the bank for monthly statements.
4 Don't sponsor unknown persons to Bank
5. Don't give your username and passwords to any third persons.
6. Don't allow third and unknown persons to use your accounts for change of their DDs and cheques because they may be fake, forged or dubious.
7. Don't do sign on the cheques in advance
8. Don't keep your cheques openly.
9. If you find any suspicion or lose of your cheques, immediately place a request before the bank to cancel the cheque leaf.
10. Do verify with the bank that the phone number supplied by you is being used by the bank for your transactions or not.
Cheatings outside Bank
1. After withdrawing money, immediately rush to your destiny and avoid to stop in the enroute
2. Do observe whether any person is following or not
3. Some persons will try to shift our attention with different pleas like Air in tyre is deterioating in your vehicle, Some obnoxious substance in your shirt, you cash fell on the ground, some body call you behind etc. In such circumstances, don't response to that person and go ahead for some distance and confirm it with some other person whom you trust to be genuine.

Rs.80 lakh cheating in the name of chits

2009-09-15T07:12:00.005+05:30

Hyderabad: 15/9/2009

One person cheated Rs.80 lakh in the name of chits and high interest. Be careful.

Cheating in the name of Deposits in ICICI Bank

2009-09-11T07:50:00.006+05:30

Eenaadu: 11/9/2009

There was a cheating in the name of deposits in ICICI Bank.
The Modus operandi is that one person introduced himself as Executive of ICICI Bank and conviced the Retd. Professor that if the unpaid instalments of insurance be paid, it would be revived and committed cheating of 5 lakhs.

Online fraud of ICICI Bank Account

2009-09-11T07:34:00.006+05:30

Eenaadu: 11/9/2009 There was an online cheating of cash Rs.1 lakh in ICICI Bank.

The Modus operandi is that one E-mail request was received by the customer that account details are being updated and asked to furnish the password details. After receipt of the credential details, the amount in the account was credited to other accounts and was withdrawn in Mumbai.

Some fake notes are being received in ATM counters. Please be cautious.

Doctors in Gold Quest fraud

2009-09-10T08:11:00.005+05:30

WARANGAL: The GoldQuest scam rocked Warangal district with police booking cases against District Medical and Health Officer Vijayapal, 32 prominent doctors and 30 other professionals for allegedly duping people through the network. The cases were booked at the Geesukonda police station in the district as per the directive of the IIIrd additional magistrate court here on Saturday. In response to a petition filed by a Vijayawada-based NGO — Corporate Frauds Watch Society — the court directed the Geesukonda police to investigate the case and submit a report. They were booked under sections of the Prize Chits and Money Circulation Schemes (Banning) Act 1978, as well as IPC 420, 385 R/W 34.

According to the complaint, several influential persons like doctors, lawyers and officials of various government departments have joined GoldQuest as member-promoters and are organising meetings and seminars in villages and towns to attract people to join the scheme with false promises.

After joining the scheme by paying huge sums, each member has to enrol more people and buy certain products being distributed by the company. They are promised huge commissions in return. Attracted by glib talk of people known to him, one Chandam Shiv Kumar of Viswanadhapuram village of Geesugonda mandal in the district and one of the petitioners, joined the scheme by paying Rs 32,000 and a registration fee of Rs 460. They gave him a six-gram gold coin and an e-card receipt. When he brought to the organisers' notice that the worth of the gold coin he got was not more than Rs 6,000 and that he was also not getting any commission, they told him that he would get commission only if he enrolled new members. The NGO, after conducting inquiries into the activities of the firm, declared that the scheme was a fraud and being run in gross violation of the Prize, Chits and Money Circulation Act.

The police also booked cases against the GoldQuest managing director, Pushpa Appala Naidu, chief executive officer Vijay Eshwaran, managers Joseph, Padma and Srinivasan.

Times of India Article:http://www1.timesofindia.indiatimes.com/articleshow/3130246.cms

Around Rs 300 crore swindled was reported this year in 2008 in Andhra Pradesh

2009-09-10T08:01:00.005+05:30

Around Rs 300 crore was swindled this year in the state. Crimes by non-banking financial institutions and real estate-related crimes lead the list.Hyderabad, Cyberabad, Vijayawada, Karimnagar, Guntur, West Godavari and Visakhapatnam lead the list for such crimes.According to the statistics of the State Crime Records Bureau (SCRB),
Rs 282 crore was swindled by non-banking financial corporations (NBFC), stock market scams and money circulation schemes.
In land scams by individuals around Rs 63 crore was swindled.Cheating cases constitute the majority of crimes at 87 per cent followed by criminal breach of trust at 10 per cent.Around 1,100 to 1,300 offenders have been arrested in these cases this year in the state.
At least 467 cases are under investigation and only 96 cases are chargesheeted.False gift schemes, money circulation schemes, multi- level marketing, promise of high rate of interest on deposits and plantation schemes which are referred to as economic offences, are reportedly on the rise .
A CID official working in the economic offences wing said, “They not only destroy the fiscal system but also the well-knit social fabric of our society. The mental agony is much more than physical pain. Such crimes lead to suicides.”An SCRB official said, “The real estate-related crimes increased this year. Land scams by housing societies and job rackets have increased alarmingly.”“Instructions were issued to all commissioners of police and superintendents of police to book cases against multi-level marketing companies under the Prize Chits and Money Circulation Schemes Banning Act,” he added.
D.C. Article : http://www.deccanchronicle.com/hyderabad/rs-300-cr-swindled-%E2%80%9908-889

how to detect money circulation scheme

2009-09-09T20:30:00.004+05:30

Money Circulation Schemes

A scheme of a company by whatever name so called promises money on the event of joining members not only on your personnal efforts of joining members into its scheme but also on the efforts of joining members by downline members. This scheme is nothing but a Money Circulation Scheme banned under the provisions of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

In Simple terms, if the scheme promises to give money based on joining members is nothing but money circulation banned under the provisions of the The Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

Beware of such scheme. Not only joining but also sponsoring members also punishable under the above law. Please inform the information of such companies to police.

Please refer Judgements of High Courts and Supreme court.

Supreme Court : (2008)8 SCC 708

AP High Court: 2007(4)ALT808(DB)

Madras High Court: M/s.Apple FMCG Vs. State of Tamilnadu and others.

Multi-Level Marketing Fraud Costs Customers Rs 12 Crore in Hyderabad

2009-09-09T19:42:00.006+05:30

Hyderabad Police Alert :Jan 07, 2009

A fraud to the tune of Rs 12 crore has been discovered following the arrest of a person who allegedly duped customers by organising schemes of multi-level marketing, police said today.

Kanamarlapudi Surendra Babu alias Gupta was arrested based on a complaint of a customer that the former was cheating people with his marketing schemes, a senior police official said.Surendra Babu, a native of Guntur district established a company Niranthara Amrutha Varshini Marketing Pvt Ltd here in 2006 and got it registered with the Registrar of Firms, Detective Department DCP Praveen Kumar said.

Babu initially attracted people by conducting meetings at his office and lured the gullible customers by offering high returns on various schemes, he said.Initially, he started a scheme in which the customers have to purchase a home appliance product by paying Rs 125 subsequently the same customer had to introduce three new customers for which he would get Rs 75, Kumar said. Gradually, he upgraded the schemes and made the customers believe that his company would give Rs 1,000 per month to them for 12 months.

Surendra Babu spread the schemes among the customers successfully initially and also paid the monthly benefits to first batch. Subsequently, he winded his business without intimating the customers and absconded. As per preliminary investigations, Surendra Babu allegedly cheated many customers to a tune of Rs 12 crore through the schemes of multi-level marketing, Kumar said.A case has been registered against Surendra Babu under various sections of the IPC and Prize Chits and Money Circulation Act (Banning) and further investigations are on.

http://news.outlookindia.com/item.aspx?651151

Cheating with SMS in the name of our CM

2009-09-06T09:53:00.004+05:30

Sakshi News paer : 06/09/2009
A SMS with a request to send the message to 16 persons and get Rs.222.16 credit to your cell phone was spread by Some unscrupulous virus spreading persons.
Interestingly they used the name of our C.M. Rajasekhara Reddy and www.ysr.foundation.com and www.jagan.foundation.com. But after enquiry, it was found a unscrupulous activity to cheat the public. Beware of such SMS and immediately complain to Police.

Cheating in the name of Medical Reports

2009-09-06T09:33:00.004+05:30

Deccan Chronicle : 06/09/2009

"WE LOST VALUABLE TIME DUE TO A FALSE MEDICAL REPORT"

Diagnostic centres in the city are often doling out false test reports sending patients into panic mode. Human error in the medical field has ical field has always been a matter of concern, but for all those who thought tests don't lie -- here's news. Forget second opinions on a diagno sis, it pays to take your medical tests more than once too.

A number of Hyderabadis have become victim to the verdicts of false medical reports that afflicted them with maladies they didn't suffer from! Who would've thought that a 21-year-old girl can suffer from osteoporosis. But that's exactly what dental student Zahra Punjani's reports diagnosed her with. "I got a couple of tests done at Vijaya Diagnostic Centre, Himayathnagar. It included an X-ray of my left knee. The reports read -Osteoporosis in "both" knees, when an X-ray of only one knee was taken. When I raised this doubt with the person who handed over the X-ray report to me, he dismissed it off as a `typing error'! Moreover, Osteoarthritis is a joint disease, which is common after the age of 40. Baffled, I walked out of there. My whole family was heartbroken. But when we decided to consult another doctor, I was told that the report was indeed false."
Furious, Zahra headed back to Vijaya Diagnostics and spoke to the head of the radiology department, who after examining the X-ray, told her that she would be given the "correct report" if she returned the "false report" to them. "I spoke to the owner of the diagnostics Centre, Dr Surender Reddy, who told me that it was just a `difference in opinion between doctors' and that while one thought it was a case of osteoarthritis the other did not. But fact remains that it is a test and results were in black and white. We were put through a lot of trauma due to the wrong test results."
Vishan Das, manager of Vijaya Diagnostics, however, completely denies that such an incident took place. "Around 700-800 patients come to our diagnostic centre a single day and we get around 100 samples per day to test. No such case has been brought to our notice, as far as I know." Dr Surender Reddy was unavailable for comment. Not too long ago, a Hyderabadi settled in Bangalore was diagnosed with TB. Her son, P.Gopinath, says, "Six months after the TB medication began, a second round of tests were done in Hyderabad, which proved she actually had lung cancer. We lost a lot of valuable time due to the wrong diagnosis." While the medical fraternity wash their hands off such errors caused due to pure negligence, it is the patients who go through a traumatic experience. Coming to terms with her serious diagnosis was a horrible experience for D. Indiraa, a resident of Noida, who came to visit her parents in Hyderabad recently. "I was suffering from vomiting and headache and I decided to visit Maxivision, Begumpet, for a routine check up. When the reports came, I was told that I have optic atrophy, a condition due to which I could lose my sight eventually. I was shattered at the thought that I might go blind soon. Once in Delhi, I went for a second opinion and the doctor rubbished the frightful diagnosis given by my doctor. I was just recommended corrective glasses!" Dr Kasu Prasad, MD, Maxi Vision Eye Hospital, however, reveals that it is important to get a second test done after the initial diagnosis. "In this particular case, the doctor may have told the patient that she could be suffering from optical atrophy and that she may lose her vision if not treated. Patients are always asked to get a second opinion from a senior doctor before jumping to conclusions. When we give a certain diagnosis, our intention is to make sure our patient doesn't suffer and undergoes necessary treatment."

Consumer court held against Computer shop owner and real estate business owner

2009-09-06T08:59:00.004+05:30

Eenadu and Sakshi : 06/09/2009
Consumer Court has awarded against the computer store and real estate business owner.
It was agreed by the computer shop owner to supply parts of computer worth Rs.30,000/- with one year guarantee. But the computer did not work properly within one month of installation. on that the consumer court held against the shop owner.
The real estate owner did not handover the land and showed deficiency in service. On that forum ordered to return back the money with interest.

Courts can monitor Investigation of Criminal Cases

2009-09-06T08:38:00.004+05:30

Eenadu 06/09/2009
Supreme Court : - Courts can monitor investigation of criminal cases.

The Hon'ble Supreme Court of India has held that courts can monitor the investigation of a case if they found that there has been an biased and unfair investigation is going on.

The above judgement was delivered by Hon'ble Justice A. Kabir and Justice Siriyak Joseph.

Plea Bargain in Criminal Cases

2009-09-03T09:21:00.005+05:30

What is plea bargaining?

It is an exercise to arrive at an agreement in a criminal case in which the prosecutor and the accused assemle to settle a case while the accused agrees to plead guilty or not to contest the charges, the prosecution concedes leniency in punishment in exchnage to the plea.

The prosecution may agree to charge the accused with a crime of lesser degree by dismissing some charges, or can promise leniency in punishment against the original charges.

Full Article

Biggest Fraud and Biggest Fine

2009-09-03T09:15:00.001+05:30

Indian Express : 3/9/2009

Largets fraud in Medicate and medic aid programms in USA.

Full article

LIC Manager Fraud

2009-09-03T09:07:00.001+05:30

Indian Express : 3/9/2009

LIC manager and one agent were convicted by the Guwahati court for committing fraud in settling death claims.

The court also imposed a fine of Rs.30,000 and Rs.50,000 on Baro and Takurita respectively.

Full Article

Multi-Level Marketing Fraud by Film Actor

2009-09-03T08:53:00.001+05:30

Indian Express : 3/9/2009

The Money was collected in a Multi-Level Marketing scheme by a film actor and cheated the public in Orissa.

A Case was booked under "The Prize Chits and Money Circulation Schemes (Banning) Act, 1978" in this regard.

Full Article

Cheating Sujana says it boosted turnover figures

2009-09-02T08:14:00.005+05:30

Deccan Chronicle: 2/9/2009

The Sujana group companies -- Sujana Metal Products Limited and Sujana Universal Limited -- have admitted that they had presented boosted turnover figures to secure bank loans.
This confession was made by the two public listed companies to strengthen their plea for exemption from paying tax on their second sales, which they said were merely "notional transactions". The Sujana group is owned by Mr Y.S.Chowdary.
SMPL and SUL showed a turnover of about Rs 1,500 crore for the financial year 2004-2005. Now the group says these figures were boosted. In the three subsequent financial years the two companies showed a turnover of Rs 6,300 crore.When the tax authorities issued notices for payment of tax for these years, Sujana presented the same argument of notional transactions. Inquiries by this correspondent revealed that the companies, in separate replies to the show-cause notices issued by the CTD, said: "We are constrained to admit that the purchases as well as our sales are notional and transacted for the purpose of securing book turnover for maintaining working results and to boost up the turnover of the company."
They went on to add, "We are recording transactions of purchases and sales without actually receiving or dispatching goods."
When contacted, Sujana group said it had submitted replies to the show-cause notice. It, however, revealed only a portion of the content of the letter the full text of which is available with the newspaper.
Also, the SMPL director Mr S. Hanumantha Rao in an affidavit in the High Court (WP No 17663 of 2005) said "the transactions are nominal transactions without their (there) being a transfer of goods."
But the Sujana group said the observation was made in a different connotation to substantiate its stand with regard to levy of tax on second sales.
A confidential note circulated at the Regional Economic Intelligence Council in its meeting on August 17, 2009, mentioned the notional sales and boosting up of turnovers by the Sujana group companies.

Article

Beware of Fake Currency Notes

2009-09-02T07:47:00.004+05:30

Andhra Jyothi News paper : 2/9/2009

"The following series of curency notes will be fake, be carefull"

Rs.500/- Note : - 2BW, 2AS, 4DG, 4OT, 4BD, 5BS, 6DK, 6AB, 6CW. CBL, 6AV, 6BR, 6BP, 6CH, 7DD, 7CA, 8CS, 8BP, BBS, 8PQ, 8DC, 8BD, 8DP, 8BF, 8AQ, 9BK, 9AS, 9AR, 9PS, 9CS, 9AS, 9AM, 9 AP, 9BR, 9 CM.

Rs.1000/- Note: - 2aQ, 8AC, 7DN, 7AC, 7CN, 9AT.

Cheating in the Name of high interest and providing jobs

2009-09-02T07:24:00.004+05:30

Eenadu News Paper : 2/9/2009.

A lady collected huge deposits from the public with the promise of huge interest, providing jobs in Govt. etc and decamped with one crore cash in Kukatpalli.

Note :The Govt. of Andhra Pradesh has issued a G.O. in consonance with the R.B.I. Act, 1934 authorising all the Inspectors of police (CIs) in the Police Department of A.P. to take action against the collection of unauthorised collection of deposits vide G.O.Ms.No.39 (Finance and Planning (PLG.IF-I) Department, Dated 2/7/1986.

G.O.Ms.No.39 Dt.2.9.1986 authorising Inspectors of Police to initiate action under RBI Act

The Public are requested not to fall prey to these unscrupulous persons. Kindly immediately inform to RBI, Police, District Collectors and draft a letter to High Court to save the innocent gullible public from being cheated.

2009-09-02T07:12:00.003+05:30

Eenadu News paper : 2/9/2009

The malpractices of the Anupama Finances, Vijaywada was informed well prior to 8 months to police. But police did not take action. As such today the said Anupama Finance has committed huge cheating".

Note :The Govt. of Andhra Pradesh has issued a G.O. in consonance with the R.B.I. Act, 1934 authorising all the Inspectors of police (CIs) in the A.P. to take action against the collection of unauthorised collection of deposits vide G.O.Ms.No.39 (Finance and Planning (PLG.IF-I) Department, Dated 2/7/1986.

G.O.Ms.No.39 Dt.2.9.1986 authorising Inspectors of Police to initiate action under RBI Act

Healthcare scam: CBI raids 14 premises in Jharkhand, Delhi

2009-09-01T17:46:00.004+05:30

Indian Express News paper : 1/9/2009

According to the CBI, purchases of over Rs 130 crore were made from the funds allotted under the National Rural Health Mission without assessing requirement and violating rulesINVESTIGATING a major irregularity in a flagship programme of the UPA government for providing free healthcare services, the CBI on Monday searched 14 premises of a former health secretary and a senior health officer of Jharkhand and three others, who are being probed for allegedly siphoning off more than Rs 130croreunderthehealthschemes.

CBI officials alleged that former health secretary Dr Pradeep Kumar, a 1991-batch IAS officer, and Dr Vijay Shankar Narain Singh, the state Reproductive Child Health Officer, fraudulently purchased medicines, medical equipment/appliances and other items used in hospitals from 19 suppliers without assessing the actual requirement and without observing the rules laid down for it.

According to the CBI, the purchases were worth more than Rs 130 crore and the amount squandered was out of the fund allotted under the National Rural Health Mission. "The accused persons bought those medicines and equipments which were of no use," said CBI spokesperson Harsh Bhal.

The CBI officers raided 14 places in Ranchi, Hazaribagh, Daltonganj and New Delhi, from where files and documents related to deals were recovered.
"The Kanke Road (in Ranchi) official residence of Kumar was raided when he was not present there. The list of seizures has not been made as search operation was still on," CBI SP R C Choudhary told The Indian Express. The raids followed an inquiry ordered by Governor K Sankarnarayanan into alleged irregularities in the purchase of medicines and other healthcare commodities. The CBI probe was ordered on the basis of the findings of an inquiry by the state health department.

The inquiry by the Director (NRHM) Nitin Madan Kulkarni and Health Secretary Dr Shivendu found that the state Reproductive and Child Health (RCH) wing madethepurchaseswithoutfollowing the rules during 2008-09 when Kumar was the health secretary.

Explaining the irregularity, an official said, "For instance, the RCH purchased 102 types of medicines from local private companies during that period, despite the Union Heath Ministry's 2008 Purchase Preference Policy that called upon the state to buy medicines under the NRHM from PSUs."

In Monday's raids, the CBI recovered documents suggesting Kumar, his brother Rajendra, two suppliers Neeraj and Shayam Lal Chakravarty and RCH's Dr Vijay Shankar owned bunglows, market complexes and farm houses worth crores in Ranchi, Bangalore and New Delhi. Kumar is also alleged to have had a business deal with his chartered accountant Naresh Kejriwal and local builder Dharmendra Kumar Dheeraj, owner of a multiplex in Ranchi. In the raid at Kejriwal's premise, incriminating documents were seized, while at Dheeraj's office-cum-residence Rs 36 lakh cash was recovered. Kejriwal has been taken into custody.

In New Delhi, the sleuths sealed the bank account and locker owned by Rajendra. From Kumar's official residence, documents showing an FD of Rs 60 lakh were recovered.

RBI filed criminal complaints against two banks

2009-09-01T17:37:00.003+05:30

RBI Filed Criminal Cases against Two Banks.

Indian Express News Paper Dated : 1/9/2009 Page No.7:

"The Reserve Bank of India has lodged a police complaint against the branch managers of two banks for allegedly accepting and then depositing fake Indian currency in its bank.According to the complaint filed on Sunday by the RBI, the Muzaffarnagar branches of PNB and State Bank of Bikaner had deposited fake notes".

The Directorate of Revenue Intelligence confirmed the fraud of Sujana

2009-09-01T08:47:00.004+05:30

Andhra Jyothi News: 1/9/2009

The Directorate of Revenue Intelligence has confirmed that "Sujana" company has committed frauds with fake documents and fake details

Realtor Sahastra Estates India was held by the Consumer Court for deficiency in service

2009-09-01T08:05:00.003+05:30

Eenadu News: 1/9/2009
The Realtor by name Sahastra Estates India was held by the Hyderabad Consumer forum-3 for its deficiency in service to allot land.

The realtor after collecting money did not register the land to its customer and demanded more money to allot another land. On that the customer approached Hyderabad consumer forum. The forum has held that the realtor is liable to return back the money of the customer with 12% interest and further Rs.2,000/- towards expenses for the case.

News full article

Tax Evasion Case Against Amway by A.P. State Government

2009-08-31T21:49:00.004+05:30

Dated: 26/8/2009

The Commercial Tax Department of A.P. levelled a case against Amway for evasion of VAT Tax about Rs.90 lakh. The Hon'ble High Court of A.P. also rejected the plea of Amway to grant stay and ordered to pay 40% immediately.

The Division Bench of the Hon'ble High Court of A.P. headed by Hon'ble Judges Goda Raghu Ram and Ramesh Ranganadhan refused to grant stay to Amway against the orders of the A.P. Commercial Taxes about the proceedings launched by the Department against the tax evasion by the Amway (W.P.No.17536 of 2009).
Please refer Writ Petition No.17536 of 2009 on the website of Hon'ble High Court of A.P. High Court website link to know the status of the case:
http://hc.ap.nic.in/pls/lobis/caseno

IBN's Story about the Frauds of Multi-Level Marketing Companies

2009-08-31T20:41:00.006+05:30

1. Part-I

2. Part-II

Huge collection of illegal Deposits under different names and cheating the public at large

2009-08-31T09:46:00.004+05:30

Eenadu News - Vijayawada : 31/8/2008

One Anupama Finance company of the Vijayawada has collected crores of deposits from the public under different names and ultimately turned its board.

Public are requested not to fall prey to these money collection companies. Immediately report the information of collection of deposits even registered NBFCs and Financial companies to police and RBI officials so that they can check their credential at least to save the some of the public.

Another massive cheating by collection of huge money with fake details

2009-08-31T09:30:00.005+05:30

Sakshi News Dated : 31/8/2008 :
One Sujana company also cheated the public like as Satyam with fake details and documents.

Hon'ble Madras High Court Judge has commented that "law enforcing agencies will close the stable only after horse escaped".

Taking the lenient view of the RBI officials, SEBI and Police Officials, another dated to commit massive cheating. Public are requested to demand the Balance sheets of the company before investment and get it verify with your respective charted accountants and other known persons to know the real position of these companies.

A Public Interest Litigation (PIL) against PACL (pearls) in High Court of A.P.

2009-08-30T19:26:00.001+05:30

A Public Interest Litigation (PIL) was filed in the Hon'ble High Court of A.P. Against PACL India Ltd. for illegal mobilisation of deposits and promoting illegal Money Circulation Scheme in the guise of Real estate business without any land and layouts as well as records.
The Division Bench of the Hon'ble High Court of A.P. has admitted the PIL and issued notices to the Police and PACL Company vide W.P.No.16712 of 2009.
Please refer Writ Petition No.16712 of 2009 on the website of Hon'ble High Court of A.P. High Court website link to know the status of the case:
http://hc.ap.nic.in/pls/lobis/caseno

The Division Bench of High Court of A.P. held the scheme of Amway to be illegal Money Circulation Scheme

2009-08-30T19:21:00.002+05:30

Reported vide 2007(4) ALT 808 DB. Para No.36 :
"From the whole analysis of the scheme and the way in which it is structured it is quite apparent that once a person gets into this scheme he will find it difficult to come out of the web and it becomes a vicious circle for him. In any event the petitioners have not specifically denied the turnover they are achieving and the income they are earning towards the initial enrollment of the distributors, the renewal subscription fee and the minimum sales being achieved by the distributors as alleged in the counter affidavit. By no means can it be said that the money which the first petitioner is earning is not the quick/easy money. By promising payment of commission on the business turned out by the down-line members sponsored either directly or indirectly by the up-line members (which constitutes an event or contingency relative to enrollment of members), the first petitioner is earning quick/easy money from its distributors, apart from ensuring its distributor earn quick/easy money. Thus the two ingredients are satisfied in the case of promoter too. We are, therefore, of the considered view that the scheme run by the petitioners squarely attracts the definition of “Money Circulation Scheme” as provided in Section 2(c) of the Act..
Whole Judgement is available at: http://hc.ap.nic.in/orders/wp_20470_2006.html

What are the Money Circulations Schemes in India and its related law

2009-08-30T19:14:00.001+05:30

The scheme which induces to give commissions / incentives based on enrolling or sponsoring new members into the scheme not only on the event of personal efforts of enrolling new members into the scheme but also on the contingency relatives or applicable to enrollment of new members by their downline members.
Sec.2(c) of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 of India defines the Money Circulation Scheme.

Sec.2(c) "money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions;
Sec.3: Banning of Prize Chits and Money Circulation Scheme or enrolment as members or participation herein : - No person shll promote or conduct any prize Chit or Money Circulation scheme, or enroll as a member to any such chit or scheme or participate in it otherwise, or receive or remit any money in pursuance of such chit or scheme”

Sec.10: Offences under this Act to be cognizable: - All offences punishable under this Act shall be cognizable”.

Amway was held by the District Consumer Forum, Vijayawada

2009-08-30T16:14:00.001+05:30

It was held that Amway India had adopted unfair trade practice in publishing and selling their products. The District Forum directed the Amway India to remove the adulterated and misbranded products from the market and not to indulge in such unfair trade practices in future. It was further directed to issue a corrective advertisement regarding the products, which are misbranded and misstated. Exemplary damages of Rupees 1,00,000/- was imposed on them to be deposited in the Consumer Welfare Fund and Rs. 2,000/- as cost to be paid to the Consumer Education Society.Consumer Guidance Society v. Amway India Enterprises, C.C. 140 of 2007, decided on 16th day of October, 2007.

Courtsy:http://www.consumerisking.in/casestudies/casestudies.php?csid=125&cid=17

RBI Cautions against the illegal Money Circulation Schemes in different forms

2009-08-30T10:17:00.001+05:30

RBI Circular about "illegal Money Circulation Schemes".
"As you may be aware, fictitious lottery and money circulation schemes aimed at
defrauding members of the public have come to light from time to time. It is clarified that remittances in any form towards participation in lottery schemes is prohibited under Foreign Exchange Management Act, 1999. Further, these restrictions are also applicable to remittances for participation in lottery-like schemes functioning under different names, such as money circulation scheme or remittances for the purpose of securing prize money/awards etc. We invite a reference in this connection to a Press Release on the subject dated December 7, 2007 issued by the Reserve Bank of India (copy enclosed). You are advised to bring the contents of the press release to the notice of your customers".
Full Text : http://www.rbi.org.in/Commonman/English/scripts/Notification.aspx?Id=372

Consumer success against Courier company for deficiency in delivery of goods

2009-08-30T08:31:00.001+05:30

The Rayachur district consumer forum of Karnataka State has held against the Professional couriers for its deficiency in service of delivery of articles. The forum fined the courier company Rs.50,000/- for its deficiency. Kindly go through the article in Telugu.
You can visit the same on line at : http://epaper.eenadu.net/svww_zoomart.php?Artname=20090830a_008101009&ileft=745&itop=579&zoomRatio=130&AN=20090830a_008101009

Recent Judgement of Supreme court against Money Circulation Schemes

2009-08-14T15:48:00.001+05:30

Recently the Hon’ble Supreme Court of India has held in KURIACHAN CHACKO AND OTHERS .Versus STATE OF KERALA which was reported vide (2008)8 SCC 708 about the Money Circulation Schemes as explained U/s.2(c) of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, the extracts of the relevant paragraphs of the judgment is as follows

Para No.36. In our opinion, the requirement of law is "an event or contingency relative or applicable to the enrolment of members into the scheme" and nothing more. The plain language of the section does not insist that such enrolment of members must be by the members already enrolled. It is impossible to read into the statutory provision such requirement which is not stipulated by Parliament. Upholding of the argument of the learned counsel would result in rewriting of the section, which is certainly not permissible in our constitutional system.

Para No.37. The event or contingency on the happening of which the amount would become payable must be relative or applicable to the enrolment of the members into the Scheme. It is immaterial by whom such members are enrolled. It may be by members, by promoters or their agents or by gullible sections of the society suo motu (by themselves). The sole consideration is that payment of money must be dependent on an event or contingency relative or applicable to the enrolment of more persons into the Scheme, nothing more, though nothing less. In the present case, the second ingredient is very much present.

Para No.41. The High Court also upheld the argument of the prosecution that the Scheme was a '"mathematical impossibility". The promoters of the Scheme very well knew that it is certain that the Scheme was impracticable and unworkable making tall promises which the makers of the promises knew truly well that it could not work successfully. It could work for some time in that "Paul can be robbed to pay Peter" but ultimately when there is a large mass of Peters, they will be left in the lurch without any remedy as they would by then have been deceived and deprived of their money.

Full Judgement is available on the website of Supreme Court of India :

http://judis.nic.in/supremecourt/chejudis.asp

Public Interest Litigation Against Amway and its camouflaged advertisements

2009-08-14T15:36:00.002+05:30

An N.G.O. by name 'Corporate Frauds Watch Society' has filed a Public Interest Litigation against the Amway and its camouflaged advertisement in the Hon'ble High Court of A.P. vide WP No.11381 of 2009 with a request to stop campaigning its camouflaged advertisements till the disposal of a criminal case pending in the Nampalli Criminal Courts vide CC No.125 of 2008 in Cr.No.10/2006 U/s.420,385 IPC and Sec.4,5 and 6 r/w 2(c), 3 of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 of C.I.D. P.S., Hyderabad, A.P.
High Court of AP website for case status:http://hc.ap.nic.in/pls/lobis/caseno

Indian Express : 03/07/2009

A division bench comprising Chief Justice Anil RDave and Justice Ramesh Ranganathan of the High Court on Thursday refused to issue notices to media houses for carrying advertisements of AmwayThe bench was dealing with a petition filed by a voluntary organisation, Corporate Frauds WatchThe petitioner asked the court to direct the government to stop Amway from doing its business which it alleged was “illegal” in nature. The court issued notices to the CID and Amway asking them to explain their behaviourThe petitioner told the court that Amway was releasing several advertisements in both print and electronic media despite a clear judgement from the AP High Court and later from the Supreme Court to ban its business.

Link: http://www.dc-epaper.com/DC/DCH/2009/07/03/ArticleHtmls/03_07_2009_004_009.shtml