Saturday, 17 November 2012

NMart's writ petition of 2010 was also withdrawn

This week NMart's counsel has withdrawn the writ petition he filed on behalf of NMart in the AP High Court in August 2010 after Corporate Frauds Watch lodged a complaint with the police against the fraudulent company stating that it is a fraud attracting the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978. The NMart appealed to the High Court to declare its business model legal.
Corporate Frauds Watch filed an implead petition in the same writ petition and appealed to the High Court to hear its plea before taking a decision on the writ petition filed by NMart.
However, the fraudsters tried their best to prolong the hearing on the writ petition.
Finally, the Andhra Pradesh police led by an upright police officer Dr Raghuram Reddy, superintendent of police of Prakasam district started taking action against NMart in 2012.
Immediately the NMart racketeers filed two more writ petitions in AP High Court in 2012 instead of putting forward arguments in the 2010 writ petition. 
When they found the going got tough, they simply appealed to the High Court to allow them to withdraw the petitions.
However, the writ filed in 2010 was not withdrawn at that time.
The counsel of NMart on Monday withdrew the writ petition as there was nothing else he could do with it.
In effect, the NMart lost one more chance to defend its business model in AP High Court. In essence, it could be deduced that NMart has actually nothing to present to the judiciary to defend his racketeering.
It is really pity that still the NMart 'distributors' - the fancy name for members - are still in the make believe world that the NMart would open soon.
It has already been mentioned several times in this blog that no court in India would give any relief to the racketeering of NMart and their ilk.
The classic example of this statement is the latest raids on Amway India in Kerala. The fraudulent company has no defense left for it to claim its 'proven business opportunity all over world' was good for Indians.
Last time in 2011 too, instead of approaching the judiciary for a remedy, the fraudulent Amway racketeers have mobilised some IBOs to submit a representation to the chief minister of Kerala.
This time they simply tucked the tail and slunk off.

48 comments:

sakil said...
This comment has been removed by the author.
sakil said...

The person shyam sunder has a business of blackmailing so his all efforts are to make this kind of misleading statements people who are concern with Nmart know the business plan of Nmart and they do not need certificate of honesty from any shyam sunder like crook.Nmart members have to wait meanwhile these false cases come to end.The day of diwali will come when this RAWANA will fall down soon.

Bharat Modi said...

Sir,
My one good friend who has cleared his ICFA degree from Ahmedabad comes with our group with the N-Mart scheme in the march/ April-2012. He has visited the N-mart Mall at Anand and surat and also learn about the company profile and give his opinion that N-Mart is a good firm to invest. Approximately 40-45 persons have invested their hard money to n-mart. Some one have created 4-5 ids of their relatives also and invested about 50,000/- from his own pocket, also collected about Rs.3,00,000/- (Rs Three Lac) from friends, relative, and known persons. I have warn all of them at the time of investment but no body was ready to listed my words at that time.
I really need to say if we all who have invested in n-mart are educated persons like Engg, CA, CFA, Comm Graduate etc. But there is a proverb that "LALACH KE SAMANE INSAN ANDHA HO JATA HAI"
Thanks to give such helpful artilces. I except that Government should have to launch a special movement with NGOs to stop such activities in the society.

Bharat Modi
Ahmedabad

arun saxena said...

Thanks for giving such information & guidance. My relatives are also member of NMART. They all are saying that Is that you who filled a case against NMART and in result the website is banned by Govt. of AP and Bank Accounts are also seized by Govt. of Andhra Pradesh.
That's why without money (active bank A/c) NMART is not able to operate its Malls. Please tell us the truth Why website is closed ? Why accounts are seized?

Thanks for making all aware of frauds but it is not good to close all services of the company. It should be Very Good to Stop New joining and observe the company to make it bound to provide the services (Rs. 220 purchase per month) to all its members.

Shyam Sundar said...

Sakil, Why Gopal Shekhawat hiding in a rat hole instead of proving his honesty and good business.
People like Sakil know well that it is a racket and they were cheated and they have also cheated their own friends and relatives.
Still, they are calling me names for the simple reason I am trying to bring awareness among people.
If people realised their racketeering they could not continue their dubious activities.

Shyam Sundar said...

Arun, when the business itself is illegal how could it be opened again. People should know that it is a crime to join such schemes. After burning their fingers only they are learning. But are they really learning? They are joining another racket out of greed to earn easy and quick money.
Catch hold of Gopal and ask him to bring out the black money he has stashed somewhere to pay back the members.

sakil said...

Mr.Shyam sunder who is responsible for stopping Nmart daily business? the N mart's bank a/c are ceased now and you people are blaming that Nmart stores are going to be closed. If there is fraud the victim has right to complaint against their not given free vouchers nobody has right to stop all the retail system if there is no new people coming with Nmart this business can run easily but Is there any sound complaint against Nmart to break all the Nmart system it is just selfish game If you win(there is no chance Insha Allah) you will get credit and If(shyam sunder) loose the People belongs to Nmart suffer too long without doing anything wrong with anybody.First and last thing some 10,20 or 100 should think about 2 million members of Nmart If there is any fraud looking in Nmart that is hypnotism created by some selfish people like you.

Butcher (A person whose trade is cutting up and selling meat in a shop.) can't stop its business of slaughtering. Is that true Mr shyam sunder?

Shyam Sundar said...

Sakil, if it is not a crime, why the judiciary is not allowing Gopal to open shop. Use your brain, Sakil, it is a crime and that is why Gopal is hiding somewhere instead of facing the court. Let him or his counsel come forward to claim that his business is legal. He is happy somewhere with all the money he has looted from the gullible like you. Go home man. Find good job or some legal business.

amitabh thakur said...

abe shyam tu bada shyana banta hai. janta hai main kaun hoon.tu idhar logon ka masiha banta hai aur udhar hotel mein beith ke apn agent ko bhejta hai, jao nmart ke management se baat karke batao compromise karein.sala milega toh hame milega.jayega toh hamara jayega. tu apna ass mein dard kiyun leta hai.tu toh kitna sarif hai mere ko mat bata.sala tere ko paisa nahi diya toh gopal sekhawat chor.abhi bolta hai nmart nahi ayega. nahi ayega toh thik hai. simple baat batao mujhe. tum toh khud bolte ho nmart ka account seize hua hai. phir bolte ho gopal ne loot ke paisa banake rakha hai. khushi se rahega. court jb ushki bank account band kia toh woh paisa kaise le sakta hai. sala tum jhuth bolte ho.abhi bhi waqt hai. sambhal ja. tujhe sirf mlm dikhta hai. kitne bade bade corporate mein fraud ho raha hai. woh tumko dikhai nahi deta kya.n6nsense.

Shyam Sundar said...

Ye phasi ka bandha hai thakur. Abe wo tu kitna paise kamayaare. doston ko isme join karke usko bhi dhoka diya tune. tujhe sharm nahin hai aise baath karne ko.
ha ha, bada chor hai. magar chota chor ko chodenge kyaa.

Akash Sen said...

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AAV Advisories - corporate business law

lakshmi vara said...

sir, Iam unable to understand why u people was waiting two years to put a case upon n mart u might have stopped in the beginning itself. iam very confident that nobody willingly wants to cheat their relatives and friends as u always use those words. But because of these politics we the members are sufferring in the middle

Shyam Sundar said...

Lakshmi, I did not wait for two years to file the case. I lodged the complaint in 2010 as soon as they started membership drive at my place. But it was the police and judiciary that took their own sweet time to take action. I cannot help it.
I agree with you that you have innocently involved your friends and relatives in the scheme. But it is a crime whether you know it or not.
Take it as a lesson not to indulge in such activities in future.
There is no politics. It is only a criminal activity.

Dr. Shiva Sharma said...

Nmart did no wrong & scam as blamed




Press Note

Nov. 16, 2012

Nmart did no wrong & scam as blamed




It is being seen that some TV Channels and News Papers are telecasting/publishing false and fabricated news in regards with Nmart. Nmart did no wrong or scam of Rs.1400 Crores as blamed. 8 persons from my family deposited Rs.5500/- each and became permanent customer of Nmart. Since last one year, I have close contact with its working.

A NGO namely Corporate Fraud Watch from Vijaywada (Andhra Pradesh) lodged complaints against Nmart with stating that Nmart is cheating innocent people and playing with their money. Andhra Pradesh police registered cases against Nmart under section 3 & 4 of Prize Chits and Money Circulation (Banning) Act 1978 and 420 of Indian Penal Code.

In my opinion, the working of Nmart does violate the provisions of Prize Chits and Money Circulation (Banning) Act 1978. Booking u/s 420 of IPC is depending on the Prize Chits and Money Circulation (Banning) Act 1978. Andhra Pradesh Police misinterpreted the provisions of Prize Chits and Money Circulation (Banning) Act 1978. Reasons behind the misinterpretaion of the law are known by Andhra Pradesh Police only.

Details of Corporate Fraud Watch's stand is with its blog namely - corporatefraudwatch.blogspot.com

I put my opinion, experience, working of Nmart and legal details regarding the case in my blog namely - http://savenmart.blogspot.in

Near about 20 Lakh people deposited Rs.5500/- each and become permanent customer of Nmart.

Nmart was trading through its near about 150 Shopping Malls in all over India.

---x---

- Mangilal Kajodia

43, Chamundapuri, Radhaganj Dewas MP

Mob. 09926050593, 08817918621

--

YOURS

M.L.kajodia




Posted 3 days ago by Mangilal Kajodia

Dr. Shiva Sharma said...


Nmart Associates should come out to save Nmart



Leave Home and Save Nmart

समाचार चैनल्स और अख़बारों मैं प्रसारित गलत खबरों ने एन्मार्ट के विरुद्ध आक्रोश को भड़काया

एन्मार्ट एसोसिएट्स में नाराजगी का कारण - सही जानकारी का अभाव




मित्रों,

कल शाम को भोपाल से बंसल न्यूज चेनल ने समाचार प्रसारित किया कि भोपाल में एन्मार्ट के मॉल पर लोगों ने प्रदर्शन किया और तोड़ फोड़ की। समाचार देख कर बड़ा दुःख हुआ। दुःख इस बात का कि एकदम निरपराध संस्थान को बिना किसी कारण के इतनी भारी समस्या का सामना करना पड़ रहा है।

एनमार्ट के एसोसिएट्स में नाराजगी का सबसे बड़ा कारण सही जानकारी का आभाव है। जब से एनमार्ट का कारोबार रुका, तब से आज तक एनमार्ट की तरफ से कोई जानकारी नहीं आई कि वास्तविक समस्या क्या है ? क्यों हैं ? और इसके समाधान के लिए क्या प्रयास किये जा रहे हैं ? इसका दू:परिणाम यह हो रहा है कि नित नई अफवाहें जन्म ले रहीं हैं।

यह तो अब लगभग सभी को पता हो गया कि विजयवाडा (आंध्रप्रदेश) के एनजीओ - कार्पोरेट फ्राड वाच ने प्राइज चिट्स और मनिसर्कुलेसन (बेनिंग) एक्ट 1978 के तहत मुकदमा कर रखा है और इसी के परिणाम स्वरुप एनमार्ट का सारा कारोबार बंद है।

अब मैं बात करता हूँ कि प्राइज चिट्स और मनिसर्कुलेसन (बेनिंग) एक्ट 1978 के तहत जो मुकदमा दर्ज हुआ है उसकी। एनमार्ट का कारोबार ऐसा है ही नहीं कि उसके विरुद्ध प्राइज चिट्स और मनिसर्कुलेसन (बेनिंग) एक्ट 1978 के तहत कोई कार्यवाही की जा सके।

एनमार्ट की कार्यप्रणाली और प्राइज चिट्स और मनिसर्कुलेसन (बेनिंग) एक्ट 1978 को एकसाथ सामने रख कर देखें -

एनमार्ट एक व्यक्ति से 5500 रूपये लेता है। इसके बदले में उसे दो लाभ देता है -




पहला लाभ -

चार साल में 10,560 रुपयों का सामान

चार साल तक हर महीने 220 रुपयों का सामान। यह हो जाता है - 220 x 48 = 10,560. इन 10560 रुपयों का सामान हर व्यक्ति को मिलता ही मिलता है। यह सामान एनमार्ट के किसी भी स्टोर्स से लिया जा सकता है। किसी महीने में कोई नहीं जा पाता है तो वह अगले महीने उस सामान को ले सकता है। लोगों ने सात - सात, आठ -आठ महीने का सामान इकठ्ठा भी लिया है। तेल, शक्कर और घी को छोड़कर स्टोर में उपलब्ध कोई भी सामान इन रुपयों के बदले में लिया जा सकता है। यह न्यूनतम लाभ है जो हर उस व्यक्ति को मिलता ही है जो 5500 रूपये एनमार्ट में जमा करता है। एनमार्ट के स्टोर्स में बाज़ार में बिकने वाला लगभग सारा सामान बाज़ार भाव में या उससे कम कीमत पर उपलब्ध रहता है। भाव में किसी के साथ कोई भेदभाव नहीं किया जाता है।




दूसरा लाभ -




5500 रूपये जमा करने वाले व्यक्ति को एनमार्ट के कारोबार को आगे बढ़ाने में सहयोग करने की पात्रता




जो व्यक्ति एनमार्ट में 5500 रूपये जमा करता है उसे एनमार्ट यह पात्रता देता हे कि वह एनमार्ट के कारोबार को आगे बढ़ाने में भी मदद कर सके। यह लाभ पूर्णतया स्वैछिक है। इसके लिए किसी तरह का कोई बंधन नहीं है। कोई अनिवार्यता नहीं है। यह पात्र व्यक्ति की इच्छा पर ही निर्भर करता है कि वह एनमार्ट के कारोबार को आगे बढ़ाने में सहयोग करना चाहता है या नहीं। इसके लिए उसे कोई बाध्य नहीं करता है।



यदि व्यक्ति एनमार्ट के कारोबार को आगे बढ़ाने में मदद करना चाहता है

तो

एनमार्ट की तरफ से उसे अतिरिक्त लाभ दिए जाते हैं।

to be continued.....

Dr. Shiva Sharma said...

अतिरिक्त लाभ - ये लाभ सशर्त हैं। ये लाभ एनमार्ट के कारोबार को आगे बढ़ाने में मदद करने के बदले में दिए जाते हैं। सभी कम्पनियाँ अपने अपने कारोबार को आगे बढ़ाने के लिए तरह तरह के उपक्रम करती है। जो कोई उनके कारोबार को आगे बढ़ाने में मदद करता है, उस मदद के बदले में उसे वे अपने तरीके और अपनी सुविधा से लाभ देती हैं।

1. पात्र व्यक्ति अपनी पहचान से अधिकतम दो और व्यक्तियों को एनमार्ट में 5500 - 5500 रूपये जमा करने के लिए प्रेरित कर सकता है। प्रेरित दो व्यक्ति यदि 5500 - 5500 रूपये जमा करते है तो इसके लिए एनमार्ट प्रेरक को इंसेंटिव के रूप में 600 रूपये देता है। यदि ये प्रेरित व्यक्ति दो-दो और लोगों को प्रेरित करते हैं और इनकी प्रेरणा पर यदि ये दो-दो प्रेरित व्यक्ति 5500-5500 और जमा करते हैं तो 600-600 रूपये और दिए जाते हैं। यह सिलसिला 60,000 रूपये प्रति सप्ताह तक जा सकता है।

2. समूह में निचे के 15 स्तरों तक के सदस्यों द्वारा 220 के सामान के अलावा सामान की की गई खरीदी पर निर्धारित दर पर कमीशन दिया जाता है।

3. समूह की वृद्धि अनुसार घोषित अवार्ड्स एवं रिवार्ड्स दिए जातेहैं। आदि।










सर्वाधिक महत्वपूर्ण टिपण्णी




इन अतिरिक्त लाभों को देने के लिए एनमार्ट से जुड़े अन्य लोगों को कोई सहयोग या त्याग करने के लिए न तो बाध्य किया जाता है और नहीं कहा जाता है। अर्थात इंसेंटिव या अवार्ड्स-रिवार्ड्स दिए जाने में लगने वाले धन की व्यवस्था में एनमार्ट की ओर से अपने स्थाई ग्राहक अर्थात 5500-5500 देने वाले व्यक्तियों से कोई हिस्सेदारी न तो मांगी जाती है और न ही थोपी जाती है। इस धन की व्यवस्था एन्मार्ट स्वयं करता है।

प्राइज चिट्स और मनिसर्कुलेसन (बेनिंग) एक्ट 1978 की सबसे महत्त्व की बात यही है कि जहाँ कुछ लोगों का लाभ बाकी लोगों के सहयोग या त्याग का परिणाम होता है, उस पर इस कानून द्वारा रोक लगाई है।





एनमार्ट के विरुद्ध प्राइज चिट्स और मनिसर्कुलेसन (बेनिंग) एक्ट 1978 की धारा 3 एवं 4 तथा भारतीय दंड संहिता की धरा 420 के तहत ही प्रकरण दर्ज किये गए हैं। इनके अलावा और किसी अन्य कानून में कोई प्रकरण दर्ज नहीं है।

to be continued.......

Dr. Shiva Sharma said...

THE PRIZE CHITS AND MONEY CIRCULATION SCHEMES (BANNING) ACT, 1978

(ACT NO. 43 OF 1978)


2. Definitions.

In this Act, unless the context otherwise requires,-



(a) "conventional chit" means a transaction whether called chit, chit fund, kuri or by any other name by or under which a person responsible for the conduct of the chit enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or certain quantity of grain instead) by way of periodical installments for a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be provided for in the chit agreement, be entitled to a prize amount. Explanation.-In this clause "prize amount" shall mean the amount, by whatever name called, arrived at by deducting from out of the total amount paid or payable at each installment by all the subscribers,



(i) the commission charged as service charges as a promoter or a foreman or an agent; and



(ii) any sum which a subscriber agrees to forego, from out of the total subscriptions of each installment, in consideration of the balance being paid to him;"






(c) "money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions;




(e) "prize chit" includes any transaction or arrangement by whatever name called under which a person collects whether as a promoter, foreman, agent or in any other capacity, monies in one lump sum or in installments by way of contributions or subscriptions or by sale of units, certificates or other instruments or in any other manner or as membership fees or admission fees or service charges to or in respect of any savings, mutual benefit, thrift, or any other scheme or arrangement by whatever name called, and utilises the monies so collected or any part thereof or the income accruing from investment or other use of such monies for all or any of the following purposes, namely :-

to be continued......

Dr. Shiva Sharma said...


(i) specified number of subscribers as determined by lot, draw or in any other manner, prizes or gifts in cash or in kind, whether or not the recipient of the prize or gift is under a liability to make any further payment in respect of such scheme or arrangement;



(ii) not won any prize or gift, the whole or part of the subscriptions, contributions or other monies collected, with or without any bonus, premium, interest or other advantage by whatever name called, on the termination of the scheme or arrangement, or on or after the expiry of the period stipulated therein, but does not include a conventional chit; (f) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934. (2 of 1934.)



3. Banning of prize chit and money circulation schemes or enrolment as members or participation therein. No person shall promote or conduct any prize chit or money circulation scheme, or enroll as a member to any such chit or scheme, or participate in it otherwise, or receive or remit any money in pursuance of such chit or scheme.




4. Penalty for contravening the provisions of section 3.

Whoever contravenes the provisions of section 3 shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to five thousand rupees, or with both: Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall not be less than one year and the fine shall not be less than one thousand rupees.




10. Offences under this Act to be cognizable. All offences punishable under this Act shall be cognizable.



Corporate Fraud Watch ने अपने 29-10-2012 के ब्लाग में माननीय सुप्रीम कोर्ट के एक निर्यण को निम्नानुसार उद्धरित किया था -






"The Supreme Court in its 2008 judgement in Kuriachan Chacko case pointed out that the organisers of the scheme knowing fully well that it won't work forever and sooner or later the chain would be broken, are still inducing the public to become members of the scheme. That is why they should be booked also on the charges of cheating under Section 420 of IPC."




एनमार्ट के सन्दर्भ में इस प्रकरण का कोई सबंध नहीं है। जब एनमार्ट के विरुद्ध प्राइज चिट्स और मनिसर्कुलेसन (बेनिंग) एक्ट 1978 का ही कोई मामला नहीं बनता है तो भारतीय दंड संहिता की धारा 420 की तो बात करना ही गलत है।




India Penal Code




"420. Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed; and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine."


प्राइज चिट्स और मनिसर्कुलेसन (बेनिंग) एक्ट 1978 की धारा 2 ए, सी एवं इ का हिंदी अनुवाद कल प्रस्तुत करूँगा।


आज मैं यही निवेदन करना चाहता हूँ

कि

हमें अपनी ताकत का उपयोग एनमार्ट को बचाने में करना है।







हमें यह याद रखना हे कि

एनमार्ट ने गलत नहीं किया है।

एनमार्ट के साथ गलत हो रहा है।

धन्यवाद

-----------




















































Posted 4 days ago by Mangilal Kajodia




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Dr. Shiva Sharma said...


Nmart didn't make scam of Rs.14,crores



1400 करोड़ के घोटाले का आरोप गलत

अभी दो - तीन दिन से टीवी चेनल्स और समाचार पत्रों द्वारा खूब प्रसारित किया गया कि एनमार्ट ने 1400 करोड़ का घोटाला किया है और कंपनी dipagiters के पैसे ले कर भाग गई। माल्स पर ताले लगा दिए। जो लोग एनमार्ट से जुड़े हुए हैं, वे जानते है कि इस बात में कितनी सच्चाई है।

पिछले दो माह से कंपनी की सारी खरीददारी बंद होने से मॉल्स का सारा सामान ख़तम होने से मॉल्स पर ताले लगे हैं।

1400 करोड़ रूपये वे हैं जो लोगों के द्वारा साढ़े पाँच पांच हजार जमा किये गए थें। सामान की खरीदी पुलिस की कार्यवाही के बाद बंद हुई। जब कंपनी की ओर से सामान खरीदने वाला कोई नहीं होगा तो मॉल्स पर सामान कहाँ से आयेगा ?

पुलिस की कार्यवाही के पहले किसी को भी 220 का सामान देने से मना नहीं किया गया था। इसलिए कंपनी में लोगों का जो भी पैसा जमा किया गया था, वह पैसा अभी भी कंपनी के पास ही जमा है। जैसे ही पुलिस का मामला निपटेगा, मॉल्स में सामान फिर से भर जाएगा। लोगों को सामान फिर से मिलने लगेगा। महत्वपूर्ण बात यह है कि जितना जल्दी हो उतना जल्दी पुलिस का मामला निपटे। समस्या कम्पनी के द्वारा खड़ी नहीं की गई है। समस्या पुलिस के द्वारा खड़ी की गई है।

एक आरोप और लगाया गया कि भोले भाले लोगों को धोखे में रख कर पैसा लिया गया। यह भी सही नहीं है। पैसा लेते समय सभी से यह कहा गया कि साढ़े पाँच हज़ार रुपयों के बदले कम से कम दस हजार पाँच सो साठ रुपयों का सामान तो मिलेगा ही। बाकि लाभ बाद में। दस हज़ार पाँच सो साठ का सामान देने से किसी को भी मना नहीं किया गया तो धोखाधड़ी करने की बात तो स्वतः समाप्त हो जाती है।

20 लाख लोगों से 1400 करोड़ लेने की बात है, तो चार साल में 3000 करोड़ का सामान देने की बात भी हे न। जब 3000 करोड़ का सामान देने से इंकार किया जावेगा, तब भारतीय दंड सहिंता की धारा 420 के तहत धोखाधड़ी का मामला बनेगा। इसके पहले नहीं। यह कम्पनी के संचालको की चिंता का विषय था की 1400 करोड़ के बदले में 3000 करोड़ का सामान कैसे देंगे। वे अपनी जिम्मेदारी करने में लगे हुयें थे। बीच में आकर पोलिस ने सारा बखेड़ा खड़ा कर दिया।

एक आरोप और लगाया गया कि कंपनी लोगों के पैसों से खेल रही है। आज दुनिया की जितनी बड़ी बड़ी कम्पनियां शेयर मार्किट के माध्यम से पैसा इकठ्ठा करती हैं, वे सब जनता के पैसों से ही तो खेलती हैं। शेयरमार्केट में लगाये पैसों की वापसी की तो कोई ग्यारंटी ही नहीं रहती है।

मैंने चार साल पहले एलआईसी की मनी प्लस और म्युच्युअल फंड में लगभग एक लाख रूपये लगाये थे। आज चार साल बाद वे एक लाख भी पुरे मिलते दिखाई नहीं दे रहें हैं। शेयरमार्केट में तो कितने ही लोग अपनी जिन्दगी की सारी जमा पूंजी लगाकर बर्बाद हो चूकें हैं। इसके बावजूद सरकार भी शेयरमार्केट को बढ़ावा देने में लगी रहती है।

शेयरमार्केट के माध्यम से पैसा इकठ्ठा करने वाली कम्पनियाँ तो उन पैसों के बदले में कोई जिम्मेदारी भी नहीं लेती है। सरकार भी कोई सुरक्षा नहीं देती है। कंपनी को लाभ होगा तो डिविडेंट बाँट दिया जावेगा। नहीं तो कोई बात नहीं। शेयर के भाव गिर गए तो आपकी मूल पूंजी भी गई।

एनमार्ट में पैसा लगाने वालों की चिंता करने वालों को पहले शेयरमार्केट में पैसा लगाने वालों की चिंता करना चाहिए।




Posted 1 week ago by Mangilal Kajodia




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Dr. Shiva Sharma said...


Let's save Nmart




Let's save Nmart

Friends,

From August 28, 2012, all the activities of Nmart has been stopped. Reason behind this is the criminal case filed by Hyderabad Police on the complaint lodged by Hyderabad based NGO named Corporate Frauds Watch. The case was filed under THE PRIZE CHITS AND MONEY CIRCULATION SCHEMES (BANNING) ACT, 1978.

All bank accounts of Nmart have been sealed. No transaction is taking place. Some officials of Nmart are in judicial custody. Police is trying to arrest other officials also. Nmart website is also banned.

The CMD Sh Gopal Shekhawat and his team members are fighting for the Nmart. About 15 lakh of people are with the Nmart. The Hyderabad Police and NGO (Corporate Frauds Watch) say that Nmart is cheating innocent people.




Is it true ?




What does Nmart do ? - Nmart takes Rs. 5500/- from a person and assures him to give minimum benefit of Rs. 10560/- in the form of daily consumer items for four years in 48 monthly installments of Rs 220/- each month.This person becomes a Permanent Customer of the N mart Nobody has denied of providing these items till date in the aforesaid manner.







Nmart gives the facility of introducing a maximum of two more permanent customers to each of its permanent cutomer. If he does so, he gets Rs.600/- as incentives. If the introduced permanent customers repeat the process mentioned above, benefits also increase as declared. This facility is fully optional; there is no compulsion . It imposes no conditions. If a permanent customer does not introduce two more customers, he bears no loss except the incentive of Rs. 600/-.




Remember when a person deposits Rs. 5500/- for four years in any nationalized bank of the country, he gets back Rs. 7764/- after four years at the interest rate of Rs. 9/- per annum. No bank offers an interest more than 9% on the deposits.




to be continued.....

sameer aman said...
This comment has been removed by the author.
Dr. Shiva Sharma said...

Now let’s have a look at the above mentioned Act –




THE PRIZE CHITS AND MONEY CIRCULATION SCHEMES (BANNING) ACT, 1978.




Section 2(a) of this Act reads –

"conventional chit" means a transaction whether called chit, chit fund, kuri or by any other name by or under which a person responsible for the conduct of the chit enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or certain quantity of grain instead) by way of periodical installments for a definite period and that each such sub- scriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be provided for in the chit agreement, be entitled to a prize amount. Explanation.-In this clause "prize amount" shall mean the amount, by whatever name called, arrived at by deducting from out of the total amount paid or payable at each installment by all the subscribers,

(i) the commission charged as service charges as a promoter or a foreman or an agent; and

(ii) any sum which a subscriber agrees to forego, from out of the total subscriptions of each instalment, in consideration of the balance being paid to him;”

Section 2(c) of this Act reads –

"money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions;




Section 2(e) of this Act reads –

"prize chit" includes any transaction or arrangement by whatever name called under which a person collects whether as a promoter, foreman, agent or in any other capacity, monies in one lump sum or in installments by way of contributions or subscriptions or by sale of units, certificates or other instruments or in any other manner or as membership fees or admission fees or service charges to or in respect of any savings, mutual benefit, thrift, or any other scheme or arrangement by whatever name called, and utilises the monies so collected or any part thereof or the income accruing from investment or other use of such monies for all or any of the following purposes, namely :-

(i) specified number of subscribers as determined by lot, draw or in any other manner, prizes or gifts in cash or in kind, whether or not the recipient of the prize or gift is under a liability to make any further payment in respect of such scheme or arrangement;

(ii) not won any prize or gift, the whole or part of the subscriptions, contributions or other monies collected, with or without any bonus, premium, interest or other advantage by whatever name called, on the termination of the scheme or arrangement, or on or after the expiry of the period stipulated therein, but does not include a conventional chit; (f) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934. (2 of 1934.)”



Section 10 of this Act reads –

“Offences under this Act to be cognizable.”
cont......

Dr. Shiva Sharma said...

Hon’ble Supreme Court observed in the case of S.V.L. Murthy etc. v. State represented by CBI,

Hyderabad (2009) 6 SCC 77 -

“41. An offence of cheating cannot be said to have been made out unless the following ingredients are satisfied:

(i) deception of a person either by making a false or misleading representation or by other action or omission;

(ii) fraudulently or dishonestly inducing any person to deliver any property; or

(iii) to consent that any person shall retain any property and finally intentionally inducing that person to do or omit to do anything which he would not do or omit.

For the purpose of constituting an offence of cheating, the complainant is required to show that the accused had fraudulent or dishonest intention at the time of making promise or representation.

Even in a case where allegations are made in regard to failure on the part of the accused to keep his promise, in the absence of a culpable intention at the time of making initial promise being absent, no offence under Section 420 of the Penal Code can be said to have been made out.”




Hon’ble Supreme Court observed in the case of Hira Lal Hari Lal Bhagwati v. CBI, New Delhi (2003) 5 SCC 257.

“… that for establishing the offence of cheating, the complainant is required to show that the accused had fraudulent or dishonest intention at the time of making promise or representation. From his failure to keep promise subsequently, such a culpable intention right at the beginning cannot be presumed.”




Hon’ble Supreme Court observed in the case of Vir Prakash Sharma v. Anil Kumar Agarwal (2007) 7 SCC 373,

“13. The ingredients of Section 420 of the Penal Code are as follows:

(i) Deception of any persons;

(ii) Fraudulently or dishonestly inducing any person to deliver any property; or

(iii) To consent that any person shall retain any property and finally intentionally inducing that person to do or omit to do anything which he would not do or omit.




Hon’ble Supreme Court observed in the case of Pepsi Foods Ltd. & Anr. v. Special Judicial Magistrate & Ors. (1998) 5 SCC 749

“28. Summoning of an accused in a criminal case is a serious matter. Criminal law cannot be set into motion as a matter of course. It is not that the complainant has to bring only two witnesses to support his allegations in the complaint to have the criminal law set into motion. The order of the Magistrate summoning the accused must reflect that he has applied his mind to the facts of the case and the law applicable thereto. He has to examine the nature of allegations made in the complaint and the evidence both oral and documentary in support thereof and would that be sufficient for the complainant to succeed in bringing charge home to the accused. It is not that the Magistrate is a silent spectator at the time of recording of preliminary evidence before summoning of the accused. The Magistrate has to carefully scrutinise the evidence brought on record and may even himself put questions to the complainant and his witnesses to elicit answers to find out the truthfulness of the allegations or otherwise and then examine if any offence is prima facie committed by all or any of the accused.”

(ii) Fraudulently or dishonestly inducing any person to deliver any property; or

(iii) To consent that any person shall retain any property and finally intentionally inducing that person to do or omit to do anything which he would not do or omit.”




Hon’ble Supreme Court observed in the case of M.A.A. Annamalai … v. State of Karnataka & Another …[Criminal Appeal No. 1504 Of 2010 (Arising out of SLP (Crl) No.5768 of 2008)]

42. “The inherent power should not be exercised to stifle the legitimate prosecution but at the same time no person be compelled to face criminal prosecution if basic ingredients of the alleged offence against him are altogether absent.”
cont.......

Dr. Shiva Sharma said...

Hon’ble Supreme Court observed in the case of S.V.L. Murthy etc. v. State represented by CBI,

Hyderabad (2009) 6 SCC 77 -

“41. An offence of cheating cannot be said to have been made out unless the following ingredients are satisfied:

(i) deception of a person either by making a false or misleading representation or by other action or omission;

(ii) fraudulently or dishonestly inducing any person to deliver any property; or

(iii) to consent that any person shall retain any property and finally intentionally inducing that person to do or omit to do anything which he would not do or omit.

For the purpose of constituting an offence of cheating, the complainant is required to show that the accused had fraudulent or dishonest intention at the time of making promise or representation.

Even in a case where allegations are made in regard to failure on the part of the accused to keep his promise, in the absence of a culpable intention at the time of making initial promise being absent, no offence under Section 420 of the Penal Code can be said to have been made out.”




Hon’ble Supreme Court observed in the case of Hira Lal Hari Lal Bhagwati v. CBI, New Delhi (2003) 5 SCC 257.

“… that for establishing the offence of cheating, the complainant is required to show that the accused had fraudulent or dishonest intention at the time of making promise or representation. From his failure to keep promise subsequently, such a culpable intention right at the beginning cannot be presumed.”




Hon’ble Supreme Court observed in the case of Vir Prakash Sharma v. Anil Kumar Agarwal (2007) 7 SCC 373,

“13. The ingredients of Section 420 of the Penal Code are as follows:

(i) Deception of any persons;

(ii) Fraudulently or dishonestly inducing any person to deliver any property; or

(iii) To consent that any person shall retain any property and finally intentionally inducing that person to do or omit to do anything which he would not do or omit.




Hon’ble Supreme Court observed in the case of Pepsi Foods Ltd. & Anr. v. Special Judicial Magistrate & Ors. (1998) 5 SCC 749

“28. Summoning of an accused in a criminal case is a serious matter. Criminal law cannot be set into motion as a matter of course. It is not that the complainant has to bring only two witnesses to support his allegations in the complaint to have the criminal law set into motion. The order of the Magistrate summoning the accused must reflect that he has applied his mind to the facts of the case and the law applicable thereto. He has to examine the nature of allegations made in the complaint and the evidence both oral and documentary in support thereof and would that be sufficient for the complainant to succeed in bringing charge home to the accused. It is not that the Magistrate is a silent spectator at the time of recording of preliminary evidence before summoning of the accused. The Magistrate has to carefully scrutinise the evidence brought on record and may even himself put questions to the complainant and his witnesses to elicit answers to find out the truthfulness of the allegations or otherwise and then examine if any offence is prima facie committed by all or any of the accused.”

(ii) Fraudulently or dishonestly inducing any person to deliver any property; or

(iii) To consent that any person shall retain any property and finally intentionally inducing that person to do or omit to do anything which he would not do or omit.”




Hon’ble Supreme Court observed in the case of M.A.A. Annamalai … v. State of Karnataka & Another …[Criminal Appeal No. 1504 Of 2010 (Arising out of SLP (Crl) No.5768 of 2008)]

42. “The inherent power should not be exercised to stifle the legitimate prosecution but at the same time no person be compelled to face criminal prosecution if basic ingredients of the alleged offence against him are altogether absent.”
cont.......

Dr. Shiva Sharma said...

Hon’ble Supreme Court observed in the case of AREGISTRAR OF FIRMS, SOCIETIES AND CHITS, UTIAR PRADESH Vs. RESPONDENT:SECURED INVESTMENT COMPANY, LUCKNOW AND ANOTHER [DATE OF JUDGMENT17/12/1987, 1988 AIR 492]

“The words ’Chitty’ or ’kuri’ Chit or Chit Fund appear to be the common words but with regional variations. Although there is no clear evidence to show the exact place of origin of chit fund, the available text [(i) ’Chit Finance’ by C.P. Somanath Nayar (1973); (ii) Chit Funds and Finance Corporation by S. Radha Krishan an (1974)] indicate that it has spread from the Southern most parts of India. In the Travancore area of the State of Kerala it is generally called ’chitty’. Within the same State, in Cochin and Malabar areas it is popularly called ’kuri’. In other parts of the country it is ordinarily called ’chit’ or ’chit fund’. In Tamil it is termed as ’chit’. In Malayalam it is called as ’chitti’ or ’kuri’. These terms appear to be synonymous, meaning thereby a written piece of paper. These transactions were purely indigenous institution. They originated in village life originated by a small group of people well know to each other. They agreed to contribute periodically a certain amount of grain or money and to distribute the entire collection which was termed as ’fund’ to one of the subscribers. It was carried on with some mutually agreed basis. In the nineteenth century, if not earlier, it was very popular in central Travancore and Trichur areas probably among Church congregations.

The chit funds appear to have originated from two legitimate demands of the rural people: (i) a necessity for a lump sum amount to meet some unusual expenditure and (ii) to provide a form of accumulated saving when people had no banking facilities. It was considered as a source of credit and mode of saving. It was meant for mutual benefit in which some people joined to save and others to borrow. What distinguishes the chit fund, however, from other financial transactions is that it connects the borrowing class directly with the lending class. The pooled saving is lent out to the same group of contributors. A chit fund collects the savings of the members by periodical subscriptions for a definite period. At the same time, it makes available the pooled savings to each member by turn as agreed by them, The collected fund may be given either by drawing lots or by bidding. Lots are drawn periodically and the member whose name appears on the winning chit gets the collection without any deductions. He, however, continues to pay his subscriptions but his name is removed from subsequent lots. Thus every member gets a chance to receive the whole amount of the chit. This is generally the features of a conventional chit. It is operated without a professional promoter or manager and without any risk of loss of capital.”

Dr. Shiva Sharma said...

Hon’ble Supreme Court observed in the case of Srinivasa Enterprises & ors. v. Union of India etc.,[1981] 1 SCR 80 1 at 804 as follows:

"The quintessential aspects of a prize chit are that the organiser collects moneys in lump sum or installments, pursuant to a scheme or arrangement, and he utilises such moneys as he fancies primarily for his private appetite and for (1) awarding periodically or otherwise to a specified number of subscribers, prizes in cash or kind and (2) refunding to the subscribers the whole or part of the money collected on the termination of the scheme or otherwise. The apparent tenor may not fully bring out the exploitative import lurking beneath the surface of the words which describe the scheme. Small sums are collected from vast numbers of persons, ordinarily of slender means in urban and rural areas. They are reduced to believe by the blare of glittering publicity and the dangling of astronomical amounts that they stand a chance-in practice negligible- of getting a huge fortune by making petty periodical payments. The indigent agrestics and the proletarian urbanites, pressured by dire poverty and doped by the hazy hope of a lucky draw, subscribe to the scheme although they can ill afford to spare any money. This is not promotion of thrift or wholesome small savings because the poor who pay, are bound to continue to pay for a whole period of a few years over peril of losing what has been paid and, at the end of it, the fragile prospects of their getting prizes are next to nil and even the hard earned money which they have invested hardly carries any interest. They are eligible to get back the money they have paid in driblets, virtually without interest, the expression ’bonus’ in s. 2(a) being an euphemism for a nominal sum. What is more, the repayable amount being small and the subscribers being scattered all over the country, they find it difficult even to recover the money by expensive, dilatory litigative process."




Hon’ble Supreme Court observed in the case of Reserve Bank of India v. Peerless General Insurance and Investment. Co. Ltd., AIR 1987 SC 1023

"We do not think that by using the word "includes", in the definition in s. 2(e) of the Act the Parliament in tended to so expand the meaning of prize chit as to take in every scheme involving subscribing and refunding of money. The word "includes", the context shows, was intended not to expand the meaning of "prize chit" but to cover all transactions or arrangements of the nature of prize chits but under different names. The expression "Prize Chit" had no where been statutorily defined before. The Bhabatosh Datta Study Group and the Raj Study Group had identified the schemes popularly called "Prize Chits". The Study Group also recognised that "Prize Chits" were also variously called benefit/savings schemes and lucky draws and that the basic common features of the schemes were the giving of a prize and the ultimate refund of the amount of subscriptions (vide Para 6.3 of the report of the Raj Study Group). It was recommended that prize chits and the like by whatever name called differently, ’prize chits’, ’benefit/savings schemes’, ’lucky draws’, etc. It became necessary for the Parliament to resort to an inclusive definitions so as to bring in all transactions or arrangements containing these two elements. We do not think that in defining the expression ’Prize Chit’, the Parliament intended to depart from the meaning which the expression had come to acquire in the world of finance, the meaning which the Datta and the Raj Study Group had The learned judge while examining the scope of two clauses (i) and (ii) of sec. 2(e) observed (p. 1042-43):

cont.......

Dr. Shiva Sharma said...

"The argument is that the two clauses (i) and (ii) are to be read disjunctively and that they should not be read as if they are joined by the conjunction ’and’. We do not agree. There is no need to introduce the word ’or’ either. How clauses (i) and (ii) of sec. 2(e) have to be read depends on the context. The context requires the definition to be read as if both clauses have to be satisfied. There is nothing in the text which makes it imperative that it be read otherwise. The learned counsel urges that the expression ’’all or any of the following purposes" indicates that the purpose may be either the one mentioned in (i) or the one mentioned in (ii). We do not agree with this submission. Each of the clauses (i) and (ii) contains a number of alternatives and it is to those several alternatives that the expression "all or any of the following purposes" refer and not to (i) or (ii) which are not alternatives at all. In fact, a prize chit, by whatever name it may be called, does not contemplate exhaustion of the entire fund by the giving of prizes; it invariably provides for a refund of the amount of subscription, less the deductions, to all the subscribers or to those who have not won prizes, depending on the nature of the scheme. Clauses (i) and (ii) refer to the twin attributes of a prize chit or like scheme and not to two alternative attributes . "




Hon’ble Supreme Court observed in the case of AREGISTRAR OF FIRMS, SOCIETIES AND CHITS, UTIAR PRADESH Vs. RESPONDENT:SECURED INVESTMENT COMPANY, LUCKNOW AND ANOTHER [DATE OF JUDGMENT17/12/1987, 1988 AIR 492]




“In the light of these principles, we may now have a close look at the definition of prize chit’ under sec. 2(e). We may cull out the following attributes:

There must be collection of moneys from persons. The moneys may be collected in one lump sum-or in installments. The moneys may be collected by way of contributions, subscriptions or as membership fees, admission fees or service charges. It may be collected by sale of units, certificates or other instruments. The collection may be in respect of any savings, mutual benefits, thrift or any other scheme or arrangement, no matter by what name. The Collection may be made by a promoter, foreman. agent or in any other capacity. The collection of moneys or any part thereof is utilised for all or any of the purposes set out in clauses (i) and (ii). They are the two distinct attributes of prize chit, each of which has to be satisfied.

cont......

Dr. Shiva Sharma said...

The definition goes a step further. The amount collected as such need not be utilised for any of the purposes under clauses (i) and (ii). It may be sufficient to attract the definition if the amount accrued from investment of such collection is used for all or any of the purposes under clauses (i) and (ii). Clauses (i) and (ii) provide for giving or awarding prize or gift to subscribers. It may be periodical or otherwise. The prize or gift may be awarded by lot, draw or in any other manner. Then there may be refund of the whole or part of the collection. The refund may be made to all or such of them who have not won any prize or gift. The refund may be made with or without any bonus, premium interest or other advantage.

Leaving aside the verbiage, if we rewrite the definition which reeks of simplicity, it runs like this: Prize chit includes a scheme by which a person in whatever name collects moneys from individuals for the purpose of giving prizes and refunding the balance with or without premium after the expiry of a specified period.

From the above analysis, it will be clear that the reach and range of the definition of ’prize chit’ is sweeping. The generality of the language appears to have been deliberately used so that the transaction, arrangement or scheme in which subscribers or contributors agree to forego a portion of their contributions in the hope of getting any prize or gift should not escape from the net of the definition. Even the participation of any person in such chit or scheme has been prohibited. The object being that the people should not be attracted to invest their moneys in the hope of getting prizes or gifts. The reason being that it has been found by the Study Group of Dr. S. Raj that all such prize chits or schemes are in the form of lottery and they do not serve any social purpose. They are prejudicial to the public interest. They affect the monetary policies of the country. They benefit only the promoters.”




Hon’ble Supreme Court observed in the case of STATE OF WEST BENGAL & ORS. Vs. SWAPAN KUMAR GUHA & ORS. DATE OF JUDGMENT02/02/1982,1982 AIR 949 1982 SCR (3) 121

“Section 2(c) of the Act provides:

" ’Money circulation scheme’ means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any A event or contingency relative or applicable to the enrollment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions."

Grammar and punctuation are hapless victims of the pace of life and I prefer in this case not to go merely by the commas used in clause (c) because, though they seem to me to have been placed both as a matter of convenience and of meaningfulness, yet, a more thoughtful use of commas and other gadgets of punctuation would have helped make the meaning of the clause clear beyond controversy. Besides, how far a clause which follows upon a comma governs every clause that precedes the comma is a matter not free from doubt. I, therefore, consider it more safe and satisfactory to discover the true meaning of clause (c) by having regard to the substance of the matter as it emerges from the object and purpose of the Act, the context in which the expression is used and the consequences necessarily following upon the acceptance of any particular interpretation of the provision, the contravention of which is visited by penal consequences.

Commas or no commas, and howsoever thoughtfully one may place them if they are to be there, I find it impossible to take clause (c) to mean that any and every activity "for the making of quick or easy money" is comprehended within its scope.
cont.....

Dr. Shiva Sharma said...

For the matter of that, I cannot believe any law to ban every kind of activity for making quick or easy money, without more, on pain of penal consequences. It is far too vague and arbitrary to prescribe that "whosoever makes quick or easy money shall be liable to be punished with fine or imprisonment". For then, in the absence of any demarcation of legitimate money-making activities from those which fall within the ban, the question whether the penal provision is attracted in a given case will depend upon the will and temper, sweet or sour, of the magistracy. Besides, speaking of law and morals, it does not seem morally just or proper to say that no person shall make quick or easy money, especially quick. A person who makes quick money may do so legitimately by the use of his wits and wisdom and no moral turpitude may attach to it. One need not travel after to find speaking examples of this. Indeed, there are honourable men (and now women) in all professions recognised traditionally as noble, who make quite quick money by the use of their talents, acumen and experience acquired over the years by dint of hard work and industry. A lawyer who charges a thousand rupees for a Special Leave Petition lasting five minutes (that is as far as a Judge’s imagination can go), a doctor who charges a couple of thousands for an operation of tonsillitis lasting ten minutes, an engineer, an architect, a chartered accountant and other professionals who charge likewise, cannot by any stretch of imagination be brought into the dragnet of clause (c) Similarly, there are many other vocations and business activities in which, of late, people have been notoriously making quick money as, for example, the builders and real estate brokers. I cannot accept that the provisions of clause (c) are directed against any of these J categories of persons. I do not suggest that law is powerless to reach easy or quick money and if it wills to reach it, it can find a way to do it. But the point of the matter is that it will verge upon the ludicrous to say that the weapon devised by law to ban the making of quick or easy money is the provision contained in section 2(c) of the "Prize Chits and Money Circulation Schemes (Banning) Act".

cont.......

Dr. Shiva Sharma said...

In order to give meaning and content to the definition of the expression ’money circulation scheme’ which is contained in section 2(c) of the Act, one has, therefore, to look perforce to the adjectival clause which qualifies the words "for the making of quick or easy money". What is within the mischief of the Act is not "any scheme, by whatever name called, for the making of quick or easy money" simpliciter, but a scheme for the making of quick or easy money, "on any event or contingency relative or applicable to the, enrollment of members into the scheme", (whether or not such money or thing is derived from the entrance money of the members of such scheme or their periodical subscriptions). Two conditions must, therefore, be satisfied before a person can be held guilty of an offence under sec. 4 read with secs. 3 and 2(c) of the Act. In the first place, it must be proved that he is promoting or conducting a scheme for the making of quick or easy money and secondly, the chance or opportunity of making quick or easy money must be shown to depend upon an event or contingency relative or applicable to the enrollment of members into that scheme.

The legislative draftsman could have thoughtfully foreseen and avoided all reasonable controversy over the meaning of the expression ’money circulation scheme’ by shaping its definition in this form: ’money circulation scheme’ means any scheme, by whatever name called,

(i) for the making of quick or easy money, or

(ii) for the receipt of any money or valuable thing as the consideration for a promise to pay money, B

On any event or contingency relative or applicable to the enrollment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscription;

I have reshaped the definition, in order to bring out its meaning clearly, without adding or deleting a single word or comma from the original text of section 2 (c). The substance of the matter is really not in doubt: only the form of the definition is likely to create some doubt as to the meaning of the expression which is not defined and, therefore, I have made a formal modification in the definition without doing violence to its language and indeed, without even so much as altering a comma. There is another aspect of the matter which needs to be underscored, with a view to avoiding fruitless litigation in future. Besides the prize chits, what the Act aims at banning is money circulation schemes. It is manifestly necessary and indeed, to say so is to state the obvious, that the activity charged as falling within the mischief of the Act must be shown to be a part of a scheme for making quick or easy money, dependent upon the happening or non happening of any event or contingency relative or applicable to the enrollment of members into that scheme. A ’scheme,’ according to the dictionary meaning of that word, is ’a carefully arranged and systematic program of action’, a ’systematic plan for attaining some object’, ’a project’. ’a system of correlated things’. (see Webster’s New World Dictionary, and Shorter oxford English Dictionary, Vol. II),

cont.....

Dr. Shiva Sharma said...

The Systematic programme of action has to be a consensual arrangement between two or more persons under which, the subscriber agrees to advance or lend money on promise of being paid more money on the happening of any event or contingency relative or applicable to the enrollment of members into the programme. Reciprocally, the person who promotes or conducts the programme promises, on receipt of an advance or loan, to pay more money on the happening of such event or contingency. Therefore, a transaction under which, one party deposits with the other or lends to that other a sum of money on promise of being paid interest at a rate higher than the agreed rate of interest cannot, without more, be a ’money circulation scheme’ within the meaning of section 2(c) of the Act, howsoever high the promised rate of interest may be in comparison with the agreed rate. What that section requires is that such reciprocal promises, express or implied, must depend for their performance on the happening of an event or contingency relative or applicable to the enrollment of members into the scheme. In other words, there has to be a community of interest in the happening of such event or contingency. That explains why section 3 makes it an offence to "participate" in the scheme or to remit any money "in pursuance of such scheme". He who conducts or promotes a money-spinning project may have manifold resources from which to pay fanciful interest by luring the unwary customer. But, unless the project envisages a mutual arrangement under which, the happening or non-happening of an event or contingency relative or applicable to the enrollment of members into that arrangement is of the essence, there can be no ’money circulation scheme’ within the meaning of section 2 (c) of the Act.

Numerous persons lend their hard-earned monies in the hope of earning high returns. It is notorious that, eventually, quite a few of them lose both the principal and the interest, for no project can succeed against the basic laws of economics. Sharp and wily promoters pay A’s money to and B’s to in order to finance interest at incredible rates, and eventually, then high-risk investment made by them at the cost of the credulous lenders fails, the entire arrangement founders on the rock of foolish optimism. The promoters, of course, have easy recourse to gadgets of the law of insolvency. It is difficult to hold that the lender, himself a victim of the machinations of the crafty promoter, is intended by the Act to be arraigned as an accused. I do not think that any civilised law can intend to add insult to injury.”

cont.....

Dr. Shiva Sharma said...

The question as to whether the First Information Report prima facie discloses an offence under section 4 read with section 3 of the Act has to be decided in the light of these requirements of section 2 (c) of the Act. I have already reproduced in extenso the F.I.R. Lodged by the Commercial Tax officer, Bureau of Investigation. Analysing-it carefully, and even liberally, it makes the following allegations against the firm ’Sanchaita Investments’ and its three partners:

(1) The firm had been offering fabulous interest (48% per annum to its members, which rate of interest was later reduced to 36% per annum;

(2) Such high rate of interest was being paid even though the loan certificate receipts show that interest was liable to be paid at the rate of 12% per annum only; and

(3) The fact that interest was paid in excess of 12% shows clearly that a ’Money Circulation Scheme’ was being promoted and conducted for the making of quick or easy money.

It seems to me impossible to hold on the basis of these allegations that any offence can be said to be made out prima facie under section 3 of the Act. In the first place, the F.I.R. does not allege, directly or indirectly, that the firm was promoting or conducting a scheme for the making of quick or easy money, dependent on any event or contingency relative or applicable to the enrollment of members into the scheme. Secondly, the F.I.R. does not contain any allegation whatsoever that persons who advanced or deposited their monies with the firm were participants of a scheme for the making of quick or easy money, dependent upon any such event or contingency. The F.I.R. bears on its face the stamp of hurry and want of care. It seems to assume, what was argued before us by Shri Som Nath Chatterjee on behalf of the prosecution, that it is enough for the purposes of section 2(c) to show that the accused is promoting or conducting a scheme for the making of quick or easy money, an assumption which I have shown to be fallacious. An essential ingredient of section 2 (c) is that the scheme for making quick or easy money must be dependent on any event or contingency relative or applicable to the enrollment of members into the scheme.

A First Information Report which does not allege or disclose that the essential requirements of the penal provision are prima facie satisfied, cannot form the foundation or constitute the starting point of a lawful investigation.

cont......

Dr. Shiva Sharma said...

In answer to the writ petitions filed by the accused in the Calcutta High Court, affidavits were filed on behalf of the prosecuting agency, which do not improve matters in any way.

The affidavit filed by Arun Kanti Roy, Deputy Secretary, Finance Department, Government of West Bengal, alleges that:

(i) The actual payment of a very high rate of interest against the professed rate of 12% attracted huge amounts of idle money into circulation.

(ii) The investment of money as collected is not under the regulatory control of the Reserve Bank of India or any other agency of the State dealing with credit control in relation to the country’s economy;

(iii) The pooling of the purchasing power and the financial resources and the unfettered deployment thereof have resulted in the concentration of tremendous economic power in the hands of a few, posing a potential threat to the equilibrium of the country’s economy;

(iv) The entire process is speculative in nature and directed towards luring away the investing public to the speculative market for making quick and easy money;

(v) The very basis of the so-called contractual arrangement between the firm and its depositors is founded on the fraudulent device to assure to the people a high rate of interest, the major portion of which is paid through unaccounted for money, thereby encouraging the growth of such unaccounted money in the hands of the investing public;

(vi) The professed rate of interest is a mere subterfuge to provide a cloak of bona fides and legality to the under hand transactions, through which unaccounted for money comes into play in the market generating further unaccounted for money, a part whereof goes back to the depositors in the form of the balance of interest over 12% paid in cash, month by month;

(vii) The firm did not have enough income or resources so as to be able to pay interest at such high rates;

(viii) The irresistible conclusion, therefore, is that interest was being paid out of the capital itself;

(ix) "The depositor becomes a member of the investment scheme of the firm by subscribing to it and the payment of the quick and easy money by way of high rate of interest is dependent upon the period of investment and/or efflux of time which are very much relative and/or applicable to the membership of the depositors of the scheme to which the depositor agrees to subscribe"; and

(x) In the process of its working, the scheme of the firm generates quick and easy money so as to render such scheme or arrangement a ’money circulation scheme’ within the meaning of the Act.

cont......

Dr. Shiva Sharma said...

The Assistant Commissioner of Police Shri Sunil Kumar Chakravarty has adopted these pleas and statements in his own affidavit. It is clear from these averments that even at the stage when the State of West Bengal and its concerned officers submitted detailed affidavits to the High Court, there was no clear basis for alleging and no material was disclosed to show that, prima facie, the firm was promoting or conducting a scheme for making quick or easy money which was dependent upon an event or contingency relative or applicable to the enrollment of members into that scheme. The burden of the State’s song is that the scheme conducted by the accused generates black money and will paralyse the economy of the country. These are serious matters indeed and it is unquestionable that a private party cannot be permitted to issue bearer bonds by the back door. The fact that the accused are indulging in an economic activity which is highly detrimental to national interests is a matter which must engage the prompt any serious attention of the State and Central Governments. But the narrow question for our consideration is whether on the basis of the allegations made against the accused, there is reason to suspect that they are guilty of an offence under section 4 read with sections 3 and 2 (c) of the Act. The allegation which we have reproduced in clause (ix) above from the affidavit of Arun Kanti Roy is the nearest that can be considered relevant for the purpose of section 2 (c) of the Acts. But even that allegation does not meet the requirement of that section since, what it says is that "the payment of quick and easy money by way of high rate of interest is dependent upon the period of investment and/or efflux of time which are very much relative and/or applicable to the membership of the depositors of the scheme to which the depositor agrees to subscribe". This is too tenuous to show that the scheme is dependent upon an event or contingency of the description mentioned in section 2(c), apart from the fact that the only participation which is alleged as against the depositors is that they become members of the "investment scheme" by subscribing to it. There is no allegation even in any of the affidavits filed on behalf of the State of West Bengal and its concerned officers that the depositors and the promoters are animated by a community of interest in the matter of the scheme being dependent upon any event or contingency relative or applicable to the enrollment of members into it.

That being an essential ingredient of the offence charged, it cannot be said in the absence of any allegation whatsoever in that behalf, that there is "reason to suspect" the commission of that offence within the meaning of section 157 of the Code of Criminal Procedure, so as to justify the investigation undertaken by the State authorities.”



“In fact, immediately after the passage which I have extracted above, the Privy Council qualified its statement by saying;

"No doubt, if no cognizable offence is disclosed, and still more, if no offence of any kind is disclosed, the police would have no authority to undertake an investigation."

cont........

Dr. Shiva Sharma said...

If anything, therefore, the judgment shows that an investigation can be quashed if no cognizable offence is disclosed by the F.I.R. It shall also have been noticed, which is sometimes overlooked, that the Privy Council took care to qualify its statement of the law by saying that the judiciary should not interfere with the police in matters which are within their province. It is surely not within the province of the police to investigate into a Report which does not disclose the commission of a cognizable offence and the Code does not impose upon them the duty of inquiry in such cases.

The position which emerges from these decisions and the other decisions which are discussed by Brother A.N. Sen is that the condition precedent to the commencement of investigation under section 157 of the Code is that the F.I.R. must disclose, prima facie, that a cognizable offence has been committed. It is wrong to suppose that the police have an unfettered discretion to commence investigation under section 157 of the Code. Their right of inquiry is conditioned by the existence of reason to suspect the commission of a cognizable offence and they cannot, reasonably, have reason so to suspect unless the F.I.R., prima facie, discloses the commission of such offence. If that condition is satisfied, the investigation must go on and the rule in Khwaja Nazir Ahmed (supra) will apply. The Court has then no power to stop the investigation, for to do so would be to trench upon the lawful power of the police to investigate into cognizable offences. On the other hand, if the F.I.R. does not disclose the commission of a cognizable offence, the Court would be justified in quashing the investigation on the basis of the information as laid or received.”



“The first question that requires to be considered is whether these materials go to indicate that there is any scheme The word ’scheme’ has not been defined in the Act. The word ’scheme’, however, has been defined in the Rules, in cl. 2 (g) thereof. Cl. 2 (g) of the Rules state that a "scheme means a money circulation scheme or as the case may be a prize chit as defined in cl. (c) and (e) respectively of s. 2". The word ’scheme’ as contemplated in S. 2 (c) of the Act is therefore, to be money circulation scheme within the meaning of the Act. To be a money circulation scheme, a scheme must be for the making of quick or easy money on any event or contingency relative or applicable to the enrollment of the members into the scheme. The scheme has necessarily to be judged as a whole both from the view point of the promoters and also of the members. Even if it be assumed that the firm may be considered to be the promoter and the persons who invest their monies in the firm are members, the question has still to be considered whether investments of the monies with the firm in expectation of getting interest @ 48% and a big part of it in black in clandestine manner, can be said from the view point of the depositors that the investment is for the making of quick or easy money. If any individual invests is money in expectation of getting a high return, say 50% or more and there is nothing clandestine in the transaction which is above board, can it be said that the investment is for making easy money or quick money ? Various individuals may invest their monies in their business which may yield very high profits. Many individuals also may indulge in speculative business in expectation of high return of their money and may succeed or may not succeed in speculative transactions. If such transactions are made openly and not in violation of any law, I have no doubt in my mind that it can never be said that such investment has been made for making quick or easy money, and such transactions can never come within the scheme for making easy or quick money as enumerated in the Act.

cont.......

Dr. Shiva Sharma said...

The further question that, however, arises for consideration is whether the position will be any different, if a part of the transaction is not above board and is secretive in nature. To my mind, that will not make any difference and the transaction cannot be considered to be a scheme for the making of quick or easy money, though the transaction may offend against revenue laws or any other law. Transactions in black money do not come within the mischief of this Act. Judged from the point of view of the depositors, it cannot, therefore, be said that their investment in the firm for high return by way of interest, part of which is above board and a part of which is clandestine, will form any part of a scheme for making easy or quick money. It is further to be noted that this return on investment by way of interest is not dependent on any event or contingency whatsoever and has nothing to do with any event or contingency relative or applicable to the enrollment of any new members, even if the depositors assumed to be members. Judged from the point of view of the firm, there is nothing to indicate that the firm makes any investment in consultation with its depositors. The materials only indicate that the firm indulges in high risk investments and also advances monies to political parties. Neither of these acts appears to be illegal and they do not go to show that the firm makes easy or quick money. lt is no doubt true that the materials go to show that the firm plays a larger amount by way of interest than payable on the basis of the rates stipulated in the loan certificate and the firm pays the excess amount of interest to the depositors in a clandestine manner. The clandestine manner of payment of interest in excess of the stipulated rate does not, in any way, indicate the existence of any scheme for making quick or easy money.

cont........

Dr. Shiva Sharma said...


It is again to be pointed out that in any event the materials do not indicate that the payment of interest by the firm in excess of the stipulated rate is in any way dependent on any event or contingency. There is nothing to indicate any scheme for the receipt of the money by the firm from its depositors as a consideration for promise to pay the interest in excess of the stipulated rate and also to pay back principal amount on the expiry of the term dependent in any way on any event or contingency relative or applicable to the enrollment of new depositors, considering the depositors to be members. I am, therefore, of the opinion, that not any, of the requirements of a money circulation scheme is satisfied in the instant case. As there is no money circulation scheme, there can be no scheme as contemplated in the Act in view of the definition of scheme in the Rules. The materials, appear to disclose violation of revenue laws. They, however, do not disclose any violation of the Act. The materials do not disclose that the firm is promoting or conducting money circulation scheme and the question, therefore, of any violation of S. 3 of the Act does not arise in the instant case. As the firm is not conducting or promoting a money circulation scheme, and as no case is made that the firm is conducting or promoting a chit fund, the Act cannot be said to be applicable to the firm. In my opinion, it does not become necessary to refer to the rules for coming to the conclusion. I may, however, add that a consideration of the rules also clearly lends support to the conclusion to which l have come. I find that the learned Judge has very carefully and elaborately considered all the aspects in his judgment and in the course of elaborate discussion, he has noted all the contentions raised by the parties and has carefully considered them. The learned Judge on a careful consideration of all aspects and on a proper interpretation of the Act, has expressed the view that no offence under the Act is disclosed against the firm which does not conduct or promote money circulation scheme or a chit fund and the Act has no application to the firm. It may also be noted that the learned Judge has also in his judgment referred to the report of the Reserve Bank and the opinion of the learned Advocate General of the State which lent support to the view taken by the learned Judge. The view expressed by the learned Judge that the materials do not disclose that the firm is promoting or conducting a money circulation scheme and the Act has, therefore, no application to the firm meets with my approval and I agree with the same.”




Friends,

I have tried to put the material and facts which can prove that the Nmart did not do any wrong. Now the only question that remains is - what can be done to save Nmart ? I suggest that all well wishers of the Nmart shuld sit together and discuss the matter and decide the course of action. Saving Namart is not only in the interest of people who are with the Nmart but it is in the interest of the Nation also.

Thanks

Long Live Nmart.




Posted 1 week ago by Mangilal Kajodia

Dr. Shiva Sharma said...


http://2.bp.blogspot.com/-RA8rekOcx8Y/UKEg7jZYXKI/AAAAAAAAACc/FZH4sTlC7Bg/s1600/save+nmart+2.jpg

http://1.bp.blogspot.com/-kFJMH9HAW4A/UKEiklzrHwI/AAAAAAAAACk/uXYqqY8M_ns/s1600/save+nmart+3.jpg

http://4.bp.blogspot.com/-A8iUTLvlmSk/UKEjuO7HIXI/AAAAAAAAACs/hK75UQdrO50/s1600/save+nmart+4.jpg

http://4.bp.blogspot.com/-n-IDpei21ag/UKEkEwi5H3I/AAAAAAAAAC0/lxKyzWWsFms/s1600/save+nmart+5.jpg

Shyam Sundar said...

Dr Sharma, All these arguments put before the Andhra Pradesh High Court in various cases including speakasiaonline, Gemini Techno and scores of other cases. However, the AP High Court after going through the material evidence of all these cases, threw the writ petitions out.
Section 2 (c) clearly says "money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrollment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions
which exactly defines the money circulation scheme indulged in by the NMart.
The Supreme Court of India in Kuriachan Chacko case stated that knowing fully well that the scheme would not work forever and soon the chain would break, these fraudulent companies are inducing members to become members of the scheme. That is why Section 420 of Indian Penal Code is applicable.
NMart counsel Anguri Narayana Rao is a senior counsel and he knows all these earlier cases. Still, he preferred to withdraw the writ petition for obvious reasons.
Dr Sharma you try your level best to put forward your opinion, the defense counsel would tear it down and establish the dubious scheme of NMart.
Gopal Shekhawat is capable of hiring stalwarts to defend his case. In fact, according to reports, he approached another senior counsel in AP High Court.
Still, the writ petition is not yet filed for 'obvious' reasons.
All the cases you referred as run-of-the-mill and almost all the multilevel marketing companies used them but to no avail.
Anyway, You are welcome to represent the case in the court. But sadly, no court in India would accept the plea that it is not a racket.

Dr. Shiva Sharma said...

Dear Shyam Sir,
There is a lot of difference in systemic plan of n Mart & other mlm companies with pyramid schemes.
In N Mart ,you do not have to join others to take benefits of your own money in form of free gifts vouchers of Rs. 220/- per month against your enrolment for 4 years agreement.
Side by side if you have purchased rs. 1500/- per month of your hose hold goods, either by cash or taking benefits of revolving credit limit then you have given a business of Rs.. 72000/- to the company & it will return you Rs. 11000/- as loyalty from its profit.
Up to this level you do not require any down line joining, but you are taking advantage of your own hose hold expenses by making it cheaper up to 20% of M.R.P.

Dr. Shiva Sharma said...

Dear Sir,
Although I am not so intelligent as you are but I always first listen to others & then try to under stand the thing and only then convey my opinion. But you are not listening others & pursuing only your opinion in general against MLM.

Shyam Sundar said...

Sharma, you are assuming that I am not listening and you also assume that I am not aware of the total plan of NMart. You are wrong.
I know fully the plan of NMart.
First, it is illegal to collect money in advance for the goods to be supplied in some future date. It needs the permission of RBI to collect money in advance.
Secondly, the enrollment is a crime. It is irrelevant that it is not compulsory. It is the biggest inducement for the members to enroll your friends and relatives.
Thirdly, it is impossible to give so much returns for the invested money in that short span of time. That amounts of 30 per cent of returns which is also against the law.
Anyway, why are you telling me all these issues. Just put before the judiciary to get the relief.
It is a mere waste of time to convince me since it is the judiciary that has to take the decision in this issue.
You did not answer to the question why Gopal is running away from the law agencies if his business is legal.
Who are you to represent him in this blog. You are not an advocate. You are also one of those members who made money in this scam. That is why you are overenthusiastic to support the nefarious activities of Gopal.

amitabh thakur said...

shyamsunder babu.u r telling that we r trying to convince you.why should we do Such?after all u r not supreme court chief justice.u r merely a man of grredy nature. second thing rbi permission needed to collect money.tell me when we deposit some money in advance for any service (service related to our home appliances etc.) from any company in future does rbi give permission to the company.likewise nmart is also giving a service in future.u r u. nmart is nmarrt.dont try to do such.bcos jab tumko defeat milega bahat dard hoga.tumhara chehra bata raha hai tum sah nahi sakega.tumne bola koi bhi adalatse gopal sekhjawat ko bail nahi milega.abhi dekho wahan sabko bail mila woh bhi tumhari ap court mein.aur age bhi dekho site bhi khulega,mall bhi khulega,plan bhi chalega.himmat hai toh rok ke dikhao.ek baat mere samajh mein nahi aata ki,tum gopal ji ko itna kiyun dhundte ho.agar unhone crime kiya hai toh warrant issue karo.dam hai kya?mujhe lagta hai ki

Shyam Sundar said...

Thakur, no person or association or society or company or a group of persons should collect deposits from public under any circumstances without permission from the RBI.
If you are not trying to convince me why the hell are you writing all this nonsense in this blog.
Chodo ye sab bekaar ke baath. Ask Gopal Shekhawat to approach the court and clear the case. Instead of doing why that fellow is hiding somewhere. Ask him to come out and clear the criminal case.

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