Supreme Court Grants Interim Protection from Arrest to Alok Nath in Haryana Multi-Level Marketing Scam Case

The Supreme Court on Tuesday granted interim protection from arrest to actor Alok Nath in connection with a fraud case linked to an alleged multi-level marketing scheme in Haryana.

A bench of Justices B V Nagarathna and R Mahadevan issued notices to the Haryana Police and other respondents on Nath’s plea. The court directed that "no coercive action" be taken against him until the next date of hearing.

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Why was Alok Nath facing arrest?

The case stems from a complaint filed by Sonipat resident Vipul Antil, who accused thirteen people, including actors Alok Nath and Shreyas Talpade, of endorsing the Human Welfare Credit Cooperative Society Ltd. Earlier, the Supreme Court had extended similar protection to Talpade in the matter.

According to the police, the cooperative society allegedly operated under a multi-level marketing model, attracting investors with promises of high returns. Authorities say the actors had been brand ambassadors of the firm, which encouraged people to invest by leveraging celebrity endorsements.

What is the Human Welfare Credit Co-Operative Society scam?

The FIR, registered on January 22 under various provisions of the Bharatiya Nyaya Sanhita, 2023, accuses the company of cheating and criminal breach of trust. The complaint states that the society, set up in September 2016 under the Multi-State Cooperative Societies Act, presented itself as a secure financial institution offering fixed deposit and recurring deposit schemes.

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It further alleges that while the society initially paid out maturities, it ultimately defrauded investors by failing to deliver on its promises, causing significant losses to the public.