The Andhra Pradesh Criminal Investigation Department (CID) today appealed to the general public against investing in multi-level marketing companies who woo people with attractive incentives.

In a statement today, Mr S.V. Ramana Murthy, Additional Director-General, CID, AP, has called upon the general public to be careful in dealing with such companies who are promoting multi-level marketing (MLM) and money circulation schemes. He advised people not to invest in them.

The CID official said that as per provisions of RBI Act 1934, such MLM companies are prohibited from collecting deposits.

Citing the case of Happyway Network Sales Pvt Ltd, a Chennai-based company, he said that this company has received cash in the form of deposits from public promising high returns. He said that a case has already been booked on Amway India, another MLM company.

The CID maintained that of late many instances of rapid profusion of schemes pyramid in structure have come to their notice.

These invite membership and investment from the public on promise of high returns. These are managed as multi-level marketing companies. Such schemes have become rampant in the State and also in the country.

As per enquiries by the CID, the MLM is a myth and modern deceptive way aimed at looting people with attractive names and false promises.

The Central and State governments have concentrated on such MLMs and enacted Prize Chits & Money Circulation Schemes (Banning) Act, 1978, to curb such activities through various schemes.

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