In what has been deemed as Kerala’s largest on-line rip-off to this point, the Highrich On-line Shoppe, headquartered in Thrissur, allegedly amassed Rs11.57 billion (Rs1,157 crore) by means of illicit means beneath the guise of an internet grocery enterprise, revealed the Enforcement Directorate (ED).
The ED, in its newest transfer, has frozen 55 financial institution accounts linked to the corporate, its associates, and key promoters KD Prathapan and his spouse Sreena Prathapan, containing a staggering sum of Rs2.12 billion. The company, upon preliminary investigation, has provisionally estimated the extent of the fraud at Rs11.57 billion.
In keeping with ED officers, a good portion of the alleged unlawful proceeds, amounting to 98%, totaling Rs1.138 billion, was channeled into the corporate’s cryptocurrency, HRCC. The remaining Rs190 million was purportedly allotted to ‘grocery pins’. Nonetheless, these deposits have been recorded as ‘buy consignment advance’ within the monetary information for the fiscal 12 months 2023-2024.
In a collection of operations performed on January 23 and 24, ED officers raided the premises of Highrich On-line Shoppe and Highrich Smartech Personal Restricted in Neruvissery, Thrissur district. Through the investigations, officers interrogated key personnel related to these entities however have been met with unsatisfactory explanations.
The modus operandi of Highrich On-line Shoppe primarily revolved round a pyramid scheme masquerading as a grocery supply service, promising members reductions of as much as 30%. Nonetheless, the majority of its income stemmed from the Ponzi scheme side, the place new members have been required to pay Rs800 as membership charges, entitling them to a assured 12.5% fee. Beneath this pyramid construction, present members have been incentivized to recruit new members, thus perpetuating the cycle of funding.
As per the intricate workings of the scheme, a member would introduce two new members, every paying Rs800, for which the unique member would obtain Rs100 from every new recruit. This sample continued exponentially, with every subsequent spherical promising larger returns, culminating in substantial payouts for early members.
The ED’s crackdown on Highrich On-line Shoppe underscores the pervasive nature of economic fraud and underscores the necessity for stringent regulatory oversight within the burgeoning digital commerce panorama. As investigations proceed, authorities stay vigilant in safeguarding the pursuits of traders and upholding the integrity of economic markets.