A new set of Standard Operating Procedures (SOP) is being formulated by the government for central and state law enforcement agencies for probing illegal multi-level marketing or ponzi schemes.
Sources said the dos and don’ts for investigating these fraudulent schemes are being drawn up by Central Economic Intelligence Bureau (CEIB) in coordination with Department of Financial Services.
The move comes following instances in which investors have been duped of their hard earned money through ponzi schemes–a swindle in which quick return on an investment is offered.
Sources in the CEIB, which acts as the nodal agency for economic intelligence, said they will share the SOP with investigating agencies once they are finalised.
Major such scams being probed include those relating to Rose Valley and Saradha chit fund wherein investors lost about Rs 15,000 crore and Rs