‘MNC agent’ held for multi-crore
fraud
Express News Service
New Delhi, December 5, 2005
Express News Service
With the arrest of one person, the Delhi Police claim to have
unearthed a multi-crore racket where four persons cheated unsuspecting
businessmen of crores of rupees by floating a company claiming
to be agents of the Korean firm M/s LG Care.
In March 2004, the complainant came across an advertisement by
a company, India Household and Health Care Ltd (IHHL). The company
claimed they were the sole licensee of LG Care for marketing household
and healthcare products in India and would soon be appointing
agents and distributors.
The complainant met the director of the company and the accused,
Vijay Raghunath Singh (35), several times, the police said.
‘‘Singh told the complainants that after appointing
them as state director- cum-Clearing and Forwarding agent IHHL
would place goods of LG worth Rs 2 crore at their disposal. The
complainant was also assured that IHHL would also get rights to
market other international brands like Rothmans, Hyundai Telecom
and Eurolife,’’ said the police.
The firms were told that IHHL would spread business to Rs 300
crore per month. Following this, the complainant’s firm paid
Rs 1.5 crore to IHHL, the police said
The complainants were promised that goods worth Rs 3 crore would
be supplied every month and goods worth Rs 2 crore would be stored
in their godowns. But the goods turned out to be inferior and
less than the promised quantity. In December 2004, IHHL was asked
to settle the dues but only assurances were given, the police
said.
In August 2005, the police registered a case against the accused.
Investigations showed that LG had moved court banning IHHL from
using their logo and trademark since September 2004, and had initiated
action against its own employees who had been hand in glove with
the accused.
Police found that Singh was an MBA graduate from Administrative
Management college, Jainagar, Bangalore. In 2003, he met one K.P.
Jairam, an NRI-based in Saudi Arabia. Both decided to form IHHL
with their wives Shobha Jairam and Aishwarya Singh. The accused
then, in connivance with some officials of LG, procured a MoU
dated November 2 2003, which was later used by them to dupe businessmen.
Police suspect the Jairam couple fled the country. Investigations
show the accused had duped eight other business concerns. So far,
the cheated amount is more than Rs 2 crore but officers suspect
that the amount would run into several hundreds of crores.
LG Care enters the Indian FMCG market
April 15 2004:
Plans aggressive growth in india and targets a sales turnover
of 150 crores in the very first year of its Indian operations
Plans to expand into all Metros, Mini-metros & towns with
a population of over 100,000 by July 2004
Will be initially introducing 200 (SKUs) consumer products across
8 categories
Will be present across the country within first 3 months of the
launch
LG Care debuts in the Indian FMCG market through a sole licensee
agreement with India Household and Healthcare Ltd. The company
also announced the introduction of its premium consumer products
across 8 categories including toothpastes, shampoos, soaps, detergents,
diapers, cleaners, cosmetics and hairstyling products. There will
be 200 product packs spread over the mentioned categories in various
sizes, packs and variants.
Mr Vijay R Singh, Managing Director, said, "India is about
to witness an FMCG revolution with the entry of the Korean chaebol
in India. LG Care's commitment is to offering world-class products
to help the individual's quest for happy living through healthy,
clean and beautiful life. LG Care will provide consumers a wide
choice of premium consumer products at reasonable prices. By entering
India LG Care has brought the Indian consumer closer to becoming
a global citizen.
Our mission is to create an Indian operation benchmarked with
LG Care internationally and be a formidable force as a FMCG major
across key consumer product categories. Our vision is to bring
global standards of good living to our Indian consumers."
Initially LG Care India estimated a turnover of 100 crores in
the first year of operations but it has been up scaled to a sales
turnover of 150 crores by the year-end owing to the market response
and encouragement. The company will be present in all the markets
nationally in 3 months time. LG Care products will be available
in all cities and towns with a population of 100,000 and above.
The company has planned an aggressive marketing, advertising
and promotions campaign. Like in all its activities, the company
is looking at an innovative mix of advertising, direct marketing,
events and promotions to establish a close and long-term relationship
with the Indian consumer. The company also has a strong research
focus to be able to generate valuable consumer feedback and inputs
for the company.
About LG Care:
LG Care's international range of Fast Moving Consumer Goods (FMCG)
enters India through a sole licensee agreement with India Household
and Healthcare Ltd (IHHL). LG Care forays into the Indian market
with over five decades of International Expertise in the Healthcare,
personal care and grooming industry, all this with the strong
parentage of the "LG Equity" in India, which is synonymous
for superior quality, revolutionary technology & Constant
Innovation.
Internationally LG Care had been incorporated long before their
foray into electronics business. LG Group was established in 1947,
the second largest conglomerate in Korea & currently operates
in over 120 Countries globally. LG Household & Healthcare
Ltd is one of the 42 companies under the LG group.
LG Care internationally has over 200 high-quality consumer products
in over 20 FMCG categories. From ultra-whitening toothpastes,
enzyme-based detergents, multi-action ion-silk treatment shampoos
to nature-based skin-care soaps, the list of technologically advanced
products is endless. All of which are manufactured at their state-of-the-art
factories spread across 200 acres of land in Korea.
LG has so far dedicated over Rs. 9000 crore to product innovations.
The brilliant R&D team has consistently won a host of international
awards for their product technology. The very same technologically
advanced LG Care's range of products that most of the consumers
in advanced countries have been using, will be available in India
at affordable prices.
