RailEnquiry

NAGPUR: The ponzi scam involving TVI Express, a network marketing direct selling company, has opened a can of worms with many railway employees now complaining that they were taken for a ride by influence-exerting officials. Citizens and employees lost crores in the scam. Commenting on the scam, Brijesh Dixit, divisional railway manager (DRM), Nagpur Central Railway, said he is ready to probe the matter. "Victims of the scam should come forward to complain that they were cheated. I will also have to see whether officials were doing business in their own name or family members," Dixit told TOI."If the employees were signed up as members of the scheme in the office, it is a serious issue," Dixit added.Even if the railway officials pretended to show they were not directly involved, Railway Service Conduct Rules are clear that they should not indulge in any kind of monetary business transactions, nor misuse their official position, which they apparently did without informing the office.On May 9, 2011, The Economic Times, Mumbai, had reported that TVI operations had closed down in July 2010. However, many employees said they were signed up as members by movement inspectors Komal Gajbhiye, Deepak Soni, S H Jalali, J L Joshi, S S Karnale, P D Raut, Smriti Dayani and others even after July 2010. The employees said they were lured by being promised that their Rs15,500 investment would double in a few days.

"We were not told about the closure of the scheme," said a victim Atmaram Govinda, who retired as pointsman. "I was tempted by Karnale," he admitted.

Karnale denied making any pointsman a member under the scheme. "I did sign up around six members but did not reap any benefits. I had also attended some meetings called by movement inspector Gajbhiye. I did not inform the office about the business," said Karnale.

Jalali flatly denied making railway employees as members. "I'm nowhere involved. My wife was a member but she too left it after realizing the mistake," Jalali told TOI.

Joshi too denied his role. "I was made member by Soni six months ago. I lost Rs50,000." If Joshi is to be believed, he became member after TVI wound up its operations.

All the up line team members, who initially enjoyed monetary benefits, are now washing their hands off the scam. The entire operation was promoted by the operating department officials and senior divisional operating manager (SrDOM) and divisional operating manager (DOM) knew about it.

Sources said that after TOI exposed the scam on Saturday, the victims have become active and want their money back. One of the groups is also planning to meet DRM Dixit on Monday. Some retired railways officials who lost money have moved the railway vigilance department and even the Central Vigilance Commission (CVC).

The TVI Express investors in the company were made franchisees for its travel business. By paying Rs15,500, they could send thousands of people on tours and travel around the world and earn handsome commissions. In Nagpur, around 10,000 people including over 500 railway employees became members.

Based in Indonesia, the company had a complex compensation package, which included weekly payouts, free holiday vouchers at global resorts and membership in exclusive clubs. Cracks started to appear in April 2010, when the holiday vouchers given by the company were found to be invalid and the cheques started bouncing.

Pyramid selling schemes are deliberate scams designed to benefit the originators while taking advantage of later recruits. They operate on the basis that members pay a large upfront fee to join, but then receive commissions for recruiting new members.