NMart is just another copycat of Amway. It is an open money circulation scheme with binary scheme. Every member has to pay an entry fee of Rs. 5,500 and for every member enrolled, he would get a commission of Rs. 200. NMart has started outlets to sell provisions for the household.
Each member would be given 48 coupons each worth Rs. 200 with which he could draw provisions every month for 48 months. The NMart's business model is a banned activity under the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.
Its crime is two-folded. It is collecting deposits without the permission of the Reserve Bank of India. And its business model is binary scheme i.e., every person should enroll two members and those two members should enroll two members each.
It is learnt that NMart has already collected Rs. 5.5 crore in Andhra Pradesh alone. The matter has been reported to the police higher officials but so far no action is initiated against the company.