Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Stocks

The Fraud by Divya Book Company, Sending Books by VPP

We just registered a Private Limited Company and were warned by our service providers, VakilSearch, that we might receive parcels requiring us to pay to receive books, and we should not do so.

And in a couple of days, a parcel from “Divya Book Company” based in Ambedkar Nagar, Delhi lands up, with the postman asking for Rs. 2300 before we can accept the parcel. Since we weren’t born yesterday (only our company was!) we asked him to take it back.

Here’s a warning: Don’t pay for books you haven’t ordered.Here’s what the parcel will look like (click to enlarge).

image

On a search on the net, it turns out this is a persistent fraud. (In fact the image is borrowed from there)

Their mode of operation is:

  • Find new companies registered (MCA releases a list)
  • Send these books by VPP.
  • The books probably cost less than 100 rupees to print, and if people return the books, they probably pay another Rs. 100 or so as a charge. Their cost per sending is Rs. 200 or so.
  • Since they charge Rs. 2000+, all they have to do is sucker 1 out of 10 people, and the fraud works.

Note: The books “look” useful, but are probably a complete waste of time. They probably aren’t worth even a fraction of the Rs. 2300 you are expected to pay.

I’m posting this as a note on Capital Mind because it’s that kind of a scam. I’m even going to call it “Suckered”.

There are forms of “invoice scams” – where (mostly in the west) businesses receive fake invoices, having the name of some kind of magazine or such. Many accountants just pay up because they believe someone in the company must have ordered it.

What Divya Book Company is probably something they will defend saying they received orders for it. However, the best way to bankrupt them is to actively refuse all offers. I don’t know if writing about it helps, but it’s better than keeping quiet!

  • Lakshmipathy says:

    Thanks for keeping informed. Might be we may fall to such prey.

  • rahul says:

    Fell to such a trap. In my case a parcel carrying name of my company which I had recently incorporated.
    Is their any way to recover the money or at least stop these people from doing such things & getting away.
    I would like to mention here that Indian Post should have such mechanism to track people who send such VPP.
    With such type of incidents the Indian Post is losing its creditability.