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The Supreme Court of India has provided temporary protection to actor Alok Nath from arrest in a high-profile fraud case connected to a multi-level marketing scheme operating in Haryana. A bench led by Justices B.V. Nagarathna and R. Mahadevan issued a notice to Haryana Police and other concerned authorities following Alok Nath’s plea. The court clearly stated that no coercive steps should be taken against the actor until the next hearing. Earlier, similar interim protection had been granted to actor Shreyas Talpade, who is also implicated in the case.
The case started when Vipul Antil, a 37-year-old man from Sonepat in Haryana, filed a complaint against 13 people, including well-known actors Alok Nath and Shreyas Talpade. The main allegation is that these actors served as brand ambassadors for the Human Welfare Credit Cooperative Society Ltd.
This society claimed to be a reliable financial institution that offered savings schemes such as fixed deposits and recurring deposits. It operated under the Multi-State Cooperative Societies Act and used aggressive marketing strategies to attract investors. The society adopted a multi-level marketing (MLM) model, where existing investors were encouraged to recruit new investors, promising high returns.
Initially, the society paid out returns to investors as promised, creating a trustworthy image. However, starting in 2023, the society began delaying the payment of maturity amounts to investors. Officials reportedly gave excuses like system upgrades to explain the delays. As the situation worsened, the society’s management stopped responding, and investors were left without their money.
Alok Nath and Shreyas Talpade were accused of promoting this scheme, which allegedly misled the public into believing the society was safe because of their celebrity status. The role of the actors is now being thoroughly investigated by the police to determine whether they were knowingly part of the scam or unintentionally associated.
This case highlights the danger of MLM schemes that use celebrity endorsements to build public trust, putting investors at significant risk of being deceived.
An FIR (First Information Report) was registered on January 22, under the newly enacted Bharatiya Nyaya Sanhita, 2023, covering the following sections:
Section 316 (2): Deals with criminal breach of trust, applying to individuals who dishonestly misuse entrusted property. The punishment may include up to five years in prison, a fine, or both.
Section 318 (2): Addresses general cheating, carrying a punishment of up to three years imprisonment, a fine, or both.
Section 318 (4): A stricter provision, targeting those who, by cheating, induce someone to deliver property dishonestly. This section allows imprisonment up to seven years along with a fine.
The police are now tasked with thoroughly investigating the roles played by Alok Nath, Shreyas Talpade, and other accused individuals. The focus will be on understanding whether they were knowingly involved in promoting the fraudulent scheme or merely unwittingly associated as brand ambassadors.
This case brings to light the growing dangers of multi-level marketing schemes, especially when celebrities are used to attract unsuspecting investors. Such endorsements tend to give a false sense of security to the public, making them vulnerable to scams.
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