A “fraudulent” multilevel advertising and marketing scheme allegedly run by a Bengaluru-based firm was disrupted with the arrest of 24 individuals, together with its CEO and others, police mentioned on Saturday.

The corporate is alleged to have deceived round 10 lakh throughout the nation, amassing large sums to the tune of Rs 1,500 crore from them, a police assertion mentioned.

He mentioned the corporate’s financial institution accounts containing Rs 20 crore had been frozen.

The assertion mentioned that an individual filed a lawsuit in opposition to the corporate on February 20, saying he was tricked with a beautiful revenue provide to advertise its merchandise.

The claimant had invested 12,500 rupees however obtained no fee on his funding as promised by his “promoters”.

He obtained no response when he contacted the promoters and realized that the enterprise was a multi-level marketer and the revenue could be earned by becoming a member of members in a sequence system or binary technique.

The scheme and modus operandi is that an individual has to pay 12,500 Rs and purchase their merchandise to develop into a member. Then he should be part of the others to earn a bonus, he says.

In response to the assertion, any system involving the registration of members is nothing greater than a cash circulation system which is prohibited beneath the Bonuses and Cash Circulation Techniques Act 1978 ( prohibition).