What is the biggest scam that every Indian must be aware of?

Ebiz

They claim Ebiz, a Network marketing business. And every Ebizer considers himself as an entrepreneur.

They create hype by telling success stories and showing some pictures likelike this:

They take you to a seminar (Life changing….really) whose entry pass is Rs. 100–200. Some motivational speaker will come and he will motivate you to do something. Something what? Ebiz. You will come to know that seminar was just a lie but they wanted to present their business plan (You are getting fooled from the start). If you aren’t convinced at the seminar,they will call you frequently.

You have to buy a product to be associate in Ebiz.

All the products are useless.

  1. There are some online computer courses like MS-Office, C, web designing courses etc. All the web material is not updated since 2007 (No production cost for them) and you can get far better material for free on the internet.
  2. A watch (MMR 3,999) but not worth Rs. 200.
  3. FREE Hotel Room booking to some selected tourist places and again on the condition that hotel should have vacancy. Booking in peak season is not allowed. To book the hotel room you have have to pay 4000 rupees (non-refundable). Sorry, I think I said FREE earlier.
  4. A suit. (My friend paid money for this, but he never got one.)

You have to buy

A)1 & 2 & 3 or (from above)

B)1 & 2 & 4

for nearly Rs. 10,830 (Valid for one year and every year you must renew it for another Rs. 5000) and you will become associate of Ebiz. Now they sell their products and can earn through profit distributed to associates on their performance.

As soon as you became associate they will encourage you to sell those products to your close friends and relatives, who will blindly believe you.

Then they will teach you to lie and sell products to strangers.

Earlier they will claim that, you can earn while studying. But afterwards they encourage you to focus on Ebiz and say “There is no scope in studying”.

They will forcefully take you to their business meetings and national conventions.

The ebiz associates who get even moderately successful are forced by the seniors to buy assets like bike(Karizma) or a car to show off their success and to lure more people in. The truth is that most of them didn’t make enough money to buy off a car or bike.

After 2–3 months you came to know that it was all lies and fraud but you won’t tell anybody as you are also a part of it. Those who get successful continue and the others tend to leave.

When I was in my first year of engineering, I had financial problems at home. And I believed everyone. So it was easy for them. I was an Ebiz Associate for 4 months and now I’m feeling guilty for the loss of money of my father and some friends. And feeling angry towards these fellows:

Pawan Malhan (Founder of Ebiz) and his son.

We can’t sue them as we have signed all kinds of legal documents while becoming associates.

Actually these type of money rotation business plan are illegal in India. Ebiz claims that, it is not a money rotation plan but network marketing by taking support of useless products.

Edit 1: This is not just about Rs. 11,000. Many youngsters failed in their studies. Many left their good job to be a part of this scam. Every year nearly 50,000–1,00,000 Indian youth actively takes part in this and waste months and years of their valuable young age of doing something.

One man’s scam is another man’s business opportunity. These companies engages in business practices that, while legal, are socially reprehensible.

There are many “companies” like this:

  1. Pancard Clubs Ltd.
  2. Hope World
  3. QNet
  4. Dewsoft
  5. Naswiz
  6. Aspire world imaginations
  7. Scoopmaniac
  8. Oasis

Waiting for some more negative names to come up, please do comment.

Credit: Quora.com

Cover image Credit

Maruthi Prasad

I’m Maruthi Prasad,a self made entrepreneur.Founded TechnoSymbol.com and WeAreJobSeekers.com .And also I am a web designer & web developer based in Bangalore,India.

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