Monday, 1 November 2010

NMart is a copycat of Amway

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.

3 comments:

Vital Kumar said...

Some big malls in cities, they also issuing membership cards by telling that on every Rs.200 / some amount of purchase the customer will get 1 point, after accumulating some points they will give "Free gift vouchers " equal to worth of the points. This is also attracting the customers towards their business malls. is it crime? if not, y?

corporate frauds watch said...

Enrollment and commission on further enrollment attracts the provisions of the Prize Chits & Money Circulation Schemes (Banning) act, 1978.

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