The fraud came to light after one of the victims lodged the complaint with KPHB police. The firm cheated at least 400 members on the name of Karakkaya (Haritaki), an ayurvedic supplement, and collected 1,000 from each person.
The firm asked victims to deposit 1,000 for a kg of Karakkaya and after powering it, they were promised to pay back 1300 per kg after 6 months. if any client buys 100 kg by paying 1,00,000, they would be paid 50 extra. The manager of the firm, Mallikarjuna is reportedly absconding.