Speak Asia: Dutch firm’s name pops up,hint of global links

Speak Asia had promised steep investment returns through a marketing pyramid model,under which individuals bought subscription to an internet magazine for Rs 11,000 a year and then became “panelists” participating in marketing surveys for which they were paid. They also got commission for bringing in additional subscribers. The scam was busted when a “panelist” who didn’t get paid approached the police.

With the company claiming 12 lakh investors or panelists,police believe the scam could be to the tune of Rs 1,320 crore. On Saturday,one of the investors,Deepankar Sarkar,was arrested and brought to Mumbai from Raipur. Starting out as an investor,he is later alleged to have promoted its activities.

The investigations by the Mumbai and Andhra Police have so far found three firms operating out of Mumbai — Kritanz Management,Seamless Outsourcing and Tulsiyat Enterprises — from dubious office spaces.

They were allegedly acting as collecting agents for Speak Asia from all its 137 Indian franchisees. The money collected from the “investors” through the franchisees would be wired to foreign accounts in banks like the Overseas Bank in Singapore. The owner of one of the Mumbai-based collecting agent firms was shown to be the retired watchman of the building in which the firm was located.

Officials say the criminal conspiracy is obvious from the fact that none of the accounts is directly in the name of the company. The money instead has been routed through bank accounts of failed enterprises of Speak Asia founder Harender Kaur,identified on the website as a chartered accountant of Indian origin and now a Singapore national.

The companies in whose names the Rs 600 crore have been received include Haren Ventures,Haren Technologies and Haren Auto Parts,apart from a Dutch company that too runs a multi-level marketing scheme,involving hiring people to watch paid advertisements. Haren Ventures and Haren Auto Parts,Speak Asia’s parent companies,are shown to be registered with British Virgin Islands,like the Speak Asia holding firm.

There was not a single written contract with any of Speak Asia’s 137 franchisees. With the marketing scheme registered as a Singapore corporate,police believe the founders and management of Speak Asia could have made a quick disappearing act at the slightest sign of a red flag.

Kaur is now wanted along with CEO Manoj Kumar Sharma in the scam.

Over Rs 1,200 crore has been frozen by Indian authorities after the police called for action. The case in Andhra is based on a complaint by a corporate watchdog in Vijaywada and the police have initiated criminal action against two state-based franchisees.