The
Economic Offences Wing of the Crime Branch, Kozhikode, conducted raids and
seized goods worth Rs 3 crore from offices of three multi-level marketing
companies operating here on Monday.
According
to Crime Branch officials, cases have been registered against these companies
for violating the Prize Chits and Money Circulation Schemes (Banning) Act,
1978.
The
police officials said that raids were conducted at the offices of Modicare in
Kathrikkadavu, K Link in Palarivattom and DXN on Old Railway Station Road.
Sunil
Augustine, manager of K Link, has been arrested. Regil, a native of Thalassery,
who is the manager of Modicare in Kerala too has been arrested. The
representatives of DXN, a Malaysia-based company having its presence in over 40
countries, are out of station, and they will soon be taken into custody.
The
Crime Branch officials seized goods worth Rs1.12 crore from DXN offices, while
goods worth Rs 1.10 crore and Rs 37 lakh were seized from the offices of
Modicare and K Link, respectively.
After
examining the documents, the Crime Branch has learnt that DXN conducted a
business of Rs.13 crore in the last one year. K Link and Modicare conducted a
business of Rs. 6 crore and Rs. 4 crore, respectively, in 2012. A case against
DXN has been registered with the Kasaba police station, Kozhikode, while cases
have been registered with the Kozhikode Town police station and the Kannur
police station against K Link and Modicare, respectively. The Crime Branch has
sealed the offices after examining the documents and goods stocked here.
P
A Valsan, Superintendent, Economic Offences Wing, Kozhikode, has said that
operations of these companies had been monitored for the last several months,
and that cases were registered as they received evidence that against the
company for violating the Prize Chits and Money Circulation Schemes (Banning)
Act, 1978. “These company sell products like cosmetics, food supplements,
kitchen products, medicine, garments and agricultural products at exaggerated
price. Each agent has to sell the products by adding two persons to his network.
He gets a commission when the two persons add more to their network,” he
said.
The
accused have been taken to Kozhikode. They will be produced before the Chief
Judicial Magistrate Court in Kozhikode.
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