Sunday, 22 December 2013

Govt Launches Drive to Identify and Weed Out Companies Resorting to MLM Schemes: But Sachin Pilot prefers to ignore the real frauds

According to the information available with the Ministry of Corporate Affairs, companies resorting to Multi-Level Marketing Schemes are doing so in contravention of either the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 or by floating unauthorized ‘Collective Investment Schemes’ in contravention of Section 11AA of the Security and Exchange Board of India (SEBI) Act, 1992. Giving this information in written reply to a question in the Rajya Sabha, Minister for Corporate Affairs Sachin Pilot said that none of these companies also appear to be registered as Non-Banking Finance Companies (NBFC). As part of its drive to identify and weed out such companies, Ministry of Corporate Affairs has shared the particulars of around 34,000 companies with objectives of carrying on financial business with the Reserve Bank of India (RBI). RBI has taken up verification of such companies. 

This is the press release issued by the Press Information Bureau, the official organ of the Government of India which sends press releases to the print and electronic media periodically.
Mr Sachin Pilot conveniently forgets that Amway India is the prime accused in implementing MLM schemes in the country and the courts have already drawn conclusion in this respect. Not only Amway but also Herbalife, Tupperware, Forever Living Products and others are also into this fraudulent schemes.
In addition, big corporate giants like Tanishq, Kalyan Jewellers, and others also have launched collective investments schemes attracting the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 and Section 11AA of SEBI Act, 1992. 
The 'Honourable' Minister Sachin Pilot conveniently turns Nelson's eye to these fraudulent' schemes. 


2 comments:

mlm stall said...

Hi,

This is such a nice blog and It is really helpful for me, But i am looking for the MLM business in India
related post,So please suggest and share if you have.

Thanks

Shyam Sundar said...

Knowing fully well that MLM is harmful to the pocket, you want to jump into the bandwagon to make easy and quick money. OK it is up to you.