Cossets scam—2 convicted. Each fined 112,000 rupees.
Puneet Nanda and Rajiv Dugala formerly ran Cossets Marketing Private Limited, in the respective capacities of MD and Director. The multi-level marketing company launched in 2001, had 40 centers across India, and had enrolled 300,000 members. Investors made several complaints against the company, accusing it of large-scale fraud.
Nanda and Dugala were accused of failing to pay 670 million rupees to their members after the company was booked under the Prize Chit and Money Circulation Scheme (Banning) Act, 1978, on direction from the Reserve Bank of India (RBI). The Crime Branch discovered that the marketing company had manipulated software, allowing it to scrape back the funds, and distribute them between company directors and their family members.