Hyd Police to intimate ED on Excel money chain fraud case

"We will inform the Enforcement Directorate about the case as there is a likelihood of violation of foreign exchange rules by the accused and the firm as the money circulation scheme was being run in the United Arab Emirates, the Philippines apart from different states in India," a senior police officer told PTI.

The ED can help probe the fund transfer angle as the company had distributors in foreign countries. The international links, including banking activities of the accused and his property, also need to be probed, the police officer said.

Following a complaint, Harish Babu Maddineni, Managing Director of Nano Excel Enterprises Ltd at Kondapur here, who did his medicine course from Russia, was arrested after police raided his premises on August 30.

Harish, allegedly engaged in carrying out multi-level marketing scheme in the guise of selling nano technology products, was absconding after the Excel money chain fraud case was busted by Kerala Police in July this year with the arrest of other accused involved in the racket.

Those who were enrolled as distributors with the company were lured with offers of good commission and over two lakh distributors/members were enrolled and subscriptions worth Rs 347 crore was collected though Rs 302 crore was repaid as commissions, said the officer.

Running a multi-level marketing scheme is not permissible under the AP Prize Chits and Money Circulation Scheme (Banning) Act, 1978.

Kerala Police are also seeking custody of Harish who is under judicial custody here as he is wanted in 236 cases in that state alone.

Nano Excel Corp, formed in 2007 by Harish, deals in nano health and wellness products in the Asia Pacific region. The company was selling 11 nano technology products imported from different Asian countries