Herbo International swindles over Rs 250 million

KATHMANDU, JAN 10: 

Department of Commerce and Supply Management has received claims of over Rs 250 million from people who were swindled by Herbo International — a network business operator. It has received about two dozen complaints against the company every day. 

People have been lodging complaints against Herbo daily, said director at the department Shankar Prasad Paudel. “It has cheated at least Rs 6,000 from each member,” he said, adding premium members had paid Rs 25,000, but they do not have receipts, he added. 

Department had taken out a notice on December 18 calling people who had been affected by four companies — Herbo International, Best World, Robias International and Crystal Vision — operating network businesses to lodge their complaints. All of them have a deposit of Rs 2.5 million at department but their business collections are many times more. It has put people at risk, he said. 

Chin Kumari Bista, a housewife from Kalikot registered her complaint at the department today. “I m here to lodge a complaint against Herbo International,” she said. The network business operator swindled Rs 25,000 from her. 

Promoters of Herbo International, Best World, Robias International and Crystal Vision fled when Supreme Court declared network businesses illegal on March 28, 2012. Around 100 network marketing companies were in operation at the time. Currently, there are no network marketing firms in the country. 

Complaints have also been lodged against Best World, Robias International and Crystal Vision but the number is small. Over half a dozen network marketing companies have fled in the past with billions of rupees due to weak laws. As per the fraud cases filed with Nepal Police, seven companies have fled with Rs 4.68 billion in the last two decades.

Promoters of Gold Quest International fled with Rs two billion, followed by Deo Soft (Rs 660 million), Quick Earning (Rs 20 million), Samrakshan Nepal (Rs 100 million), Prime Bag Nepal (Rs 500 million), Wave Line (Rs one billion), and Pratiksha Network (Rs 400 million).

Source: THT