In less than a fortnight, investors in Rajasthan have lost more than `3000 crore to Multi-Level Marketing (MLN) schemes floated by a handful of investment companies. The ponzi promoters, who were operating in different parts of state, cheated lakhs of people by promising unusually high returns of up to 300% on investments in a year.
Looking into the magnitude of the fraud, chief minister Ashok Gehlot recently decided to regulate the activities of such firms by reviving a law against chit fund companies.
The massive scale of the fraud was exposed when Gold Sukh Trade India Limited, a Jaipur-based firm, stopped its regular returns to the investors and its promoters went missing. The firm had used media campaigns and word-of-mouth publicity, to lure unsuspecting customers to its net. Police investigations revealed that the company duped 1.5 lakh investors of `200 crore in Rajasthan and nearby states. The company claimed to have purchased gold with money and had promised high profit in return on investments.
With 27 offices throughout the country including eight in Rajasthan, Gold Sukh had set up its corporate office in C-Scheme locality in Jaipur. After the fraud came to light, police have arrested 16 officials, but company's directors, Mahendra Singh, Manvendra Singh, Narendra Singh and Pramod Sharma are still absconding.
After the fraud by Gold Sukh was exposed, investors who had money parked in other ponzi schemes panicked and started to claim their money back. Most firms defaulted in payments leading to multiple complaints against different MLM schemes. The biggest ponzi scheme fraud in the state came to light when investors of Retail Commercial Marketing (RCM), a Bhilwara-based firm, alleged that the firm had duped them of Rs 2,000 crore. According to police, RCM invited people to become its member by depositing Rs1,500. In return they were promised a commission of 10 per cent on the condition they would bring more members. Police have arrested four persons, but company directors, Trilokchand Chabra, Saurabh Chabra, Kailash Chandra Chabra, Bhag Chand Chabra and Priyanka Chabra, are still at large.
According to probe, Pearl Agro Tech Corporation Ltd (PACL) duped over 30 lakh of investors of Rs600 crores through its 277 branches in state. The company allegedly duped its investors on the pretext of providing them land on installment at cheaper rates. The name of the company was Guruwant Agro before it changed to PACL in year 1998. Police have arrested the Jaipur head Rakesh Chittora in this connection. Another firm, Preeya Pariwar, which promised computer education to its members by charging them Rs7,500 and also promised to provide customers a regular commission if they brought more clients, duped around 3 lakh members of over Rs 200 crore. The matter came to light when an investor registered a complaint against the firm at Vidhyadhar Nagar police station. 
A senior cop, who is a part of the investigations, said that MLM companies targeted middle and lower middle class people who wanted to make quick money. "In the beginning, these companies disbursed money to certain investors periodically to gain their trust and later stopped making payments," he added.
RCM Ltd (`2000 cr)
Retail Commercial Marketing (RCM) duped one crore investors of `2,000 crore. The company promised 10% commission to every member, who could join by paying `1,500, if he added more members to the firm
PACL Co (`600cr)
Pearl Agro Tech Corporation Ltd (PACL) robbed over 30 lakh investors of `600 crore in 10 years. The company promised its investors land at the cheaper rates. Police have arrested the firm’s Jaipur head, Rakesh Chittora
Gold Sukh (`200 cr)
Gold Sukh Trade India Ltd fled with `203 crore of 1.5 lakh investors. It promised high returns on their deposit, which they claimed to have invested in gold. 16 persons have been arrested. The company directors are still absconding
Eve Miracle (`145 cr)
Eve Miracle duped its 19000 investors of `145 crore. People from Rajasthan, MP and Maharashtra had parked their money in the firm. During a police raid, 14 kg gold was seized from the promoter’s office