KOZHIKODE: Even as the number of economic offences being reported from various parts of the state is on the rise, victims approach the police only rarely to register complaints against such frauds.According to the data available with the State Crime Records Bureau, the number was as low as 17 in 2010, whereas hundreds of persons are being cheated every year by fraudsters. The situation is similar in 2011 also, as only four persons have approached the police till the end of April, to register complaints against money fraud. A large number of persons are being deceived by the fraudsters in the name of money circulation scheme, prize chits or multi-level marketing (MLM), according to police officials.Ignorance of the people about money circulation schemes, which operate in disguise of MLM or networking and ignorance and prejudice about the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, prevents the victims of the fraud from complaining. According to P P Sadanandan, DeputySP (Crime Detachment) Kozhikode Rural, who is the investigating officer of Money Circulation Fraud by Tycoon Empire International, many of the victims expect that they would get back their money at a later stage.Besides, the confidence building tricks by the fraudsters and their promises forbid the victims from seeking legal support, he added. Misinterpretation of the Act by the agents of fraud threatens the victims. They are forced to believe that they too would be jailed once they declare themselves as part of the scheme.However, the police officials have made it clear that the victims would not be punished as it would be against the spirit of the Act. Many of the economic offences are committed by companies which function in the name of MLMs. Though the companies claim MLMs as legal, Section 2(c) of the Money Circulation Schemes (Banning) Act has clearly stated money circulation scheme as any scheme, by whatever name called, for making of quick or easy money, or for the receipt of any money, or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions.High Court of Kerala, Andhra Pradesh and Madras had also declared money circulation in the name of networking and MLM as illegal while considering many cases.Meantime, the police official cleared that the activities of the Tycoon, as they claim, have no connection with MLM as they have not been selling any service or product to the people.
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