Rs 70 cr deposits of Multi Level Marketing firm from Noida, frozen by Police

Over Rs 70 crore worth of deposits of a Noida based Multi-Level Marketing firm, including its two directors, have been frozen for allegedly cheating the public of about Rs 1,000 crore, police said here Tuesday

They said that Hitik Malhan, in charge of the day toadministration of the company, was being questioned over acase booked against the company recently under the 'PrizeChits and Money Circulation Schemes (Banning) Act, 1978.' eBiz.com Pvt. Ltd, an MLM firm set up in 2001 at Noida inUttar Pradesh, has around seven lakh representatives asmembers, police said in a release, adding that the amountcheated from the people was expected to be more than Rs 1,000crore

"The eBiz business model is a simple pyramid scheme inwhich early entrants earn money and as the number ofrepresentatives increases, finding more representatives (NewComers) to join becomes difficult or impossible, the releasesaid.