The Managing Director of multilevel marketing company eBIZ and his son were arrested by the Hyderabad Police from the company's Noida office on Tuesday for allegedly cheating thousands of people, including students and unemployed youths, to the tune of Rs 5,000 crore nationwide.

A team from the Hyderabad police on Tuesday raided the company’s office at Noida sector 63 and arrested Managing Director Pavan and his son Hitikh Malhan.

“Pavan and Hitikh Malhan were arrested from Noida, while they were trying to escape from the company,” a senior police officer said, adding that more arrests in this connection would be made soon. A police team on Wednesday visited the company in Noida again and seized some documents.

The police have frozen the bank accounts of eBiz.com Pvt Ltd Company and its directors, who purportedly have around Rs 389 crore deposited in the company. The Malhans have been running the company since 2001 from Noida.

“The company head office was sealed by the police and an amount of Rs 389 crore was frozen in the company's bank account. During investigation, it was found that Pavan as MD, his wife Anitha as director and son Hitikh looked after the company's affairs,” the official added.

Two cases were registered against the company at Warangal and Adilabad, said VC Sajjanar, Commissioner of Police, Cyberabad.

Cases have been registered against the company all over the country. According to the police, the accused used to primarily target students and unemployed youths. The promoters of the company used to give them motivational lectures stating that theirs is a profitable business opportunity which could yield huge profits. Once customers joined by paying a certain amount to the company, a username and password would be generated. They also lured students claiming that their money invested in the company's account would be given back in double figures after a month.