Mumbai Police Arrest Four in Connection With ₹30-Crore Multilevel Marketing Scheme

The Economic Intelligence Unit of the Mumbai Police Economic Offences Wing has arrested four individuals in connection with an alleged Ponzi and multi-level marketing operation conducted through an entity named AI Origin, also known as Digital Origin. Investigators state that the company collected over ₹30 crore in cash from members of the public without holding the required regulatory clearances from financial authorities.

What Happened

According to police reports, the arrests took place on August 13 and August 14, 2026. The firm had been operating for roughly a year, using its website AIOrigin.in, several WhatsApp groups, and direct seminars across districts in Maharashtra to attract investors. Key company figures identified by authorities include Chairman and Executive Director Shrikrishna Pandurang Chavan, along with Executive Directors Ankush Shantaram Parte and Subhash Yashwant Pandere.

Investigators reported that the operators accepted cash investments under assurances of fixed monthly returns ranging between 5% and 7%. These financial activities were carried out without securing registration or licensing from either the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI).

To expand its reach, the firm allegedly deployed a multi-level referral system. Investors were instructed to pay ₹1,500 to obtain access to an application named ‘UPPI’. In order to access their returns, investors were required to refer additional members, earning between ₹3 and ₹5 per referral until accumulating ₹500, which necessitated enlisting around 70 to 80 people. Police also noted that roughly 60 agents were sent on an all-expenses-paid trip to Thailand to aid in recruitment, ultimately drawing in more than 3,000 investors.

Searches conducted at company premises in Vasai West (Palghar) as well as Goregaon East and Malad East (Mumbai) led to the seizure of ₹12.08 lakh in cash, nine bank account passbooks, seven laptops and desktops, a BMW motor car, and a Verna car. The enterprise had established functional offices in Thane, Palghar, Pimpri-Chinchwad, Sangli, and Kolhapur, while deploying agents across Goa and Karnataka. Further office openings had been scheduled for Satara and Solapur on August 16.

Key Highlights

• Four persons were arrested by the Mumbai Police Economic Intelligence Unit in connection with the company AI Origin/Digital Origin.
• The company stands accused of amassing over ₹30 crore in unregulated cash deposits from upwards of 3,000 investors.
• Authorities invoked Section 318(4) for cheating and Section 3(5) for joint liability under the Bharatiya Nyaya Sanhita (BNS).
• Charges were also registered under Sections 21, 23, and 26 of the Banning of Unregulated Deposit Schemes (BUDS) Act.
• Seized assets include ₹12.08 lakh in cash, passbooks for nine bank accounts, seven computers, and two vehicles.

Why This Matters

The case highlights enforcement actions against unauthorized collective investment models and deposit schemes operating outside established financial frameworks. Under the Banning of Unregulated Deposit Schemes (BUDS) Act, soliciting or receiving non-exempt deposits without formal authorization carries penalties ranging from one to seven years of imprisonment, alongside heavy financial penalties. Additionally, cheating charges under Section 318(4) of the Bharatiya Nyaya Sanhita provide for prison terms of up to seven years.

What to Watch Next

The Mumbai Police Economic Intelligence Unit has indicated that its investigation remains ongoing. Officials will continue scrutinizing the seized records, computer equipment, and bank accounts associated with the operation.

Frequently Asked Questions

Which company is under investigation?

The investigation centers on a firm operating under the names AI Origin and Digital Origin, which hosted its web platform at AIOrigin.in.

What legal provisions have been invoked?

The case has been filed under BNS Section 318(4) for cheating, Section 3(5) for joint liability, and Sections 21, 23, and 26 of the BUDS Act concerning unregulated deposit collection and reporting violations.

Did the company hold authorization from financial regulators?

According to the police, the entity operated without obtaining any registration or licence from either the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI).

Source: The Hindu