Sunday 23 September 2012

Madras High Court held in V-Can Network case MLM is a fraud played on hapless, innocent public


In a land mark judgement the Madras High Court in Writ Petition No. 2908 and Writ Petition No.4144, W.P.M.P.Nos. 3650 and 5221, W.P.No. 2908 all of 2003, stated that the V-Can Network (P) ltd is indulging in money circulation scheme in the name of selling products.
One look at the facts of the case reveals that there are striking similarities between the present NMart and V-Can Network in the business model with only difference that former has set up retail shops all over the place.
Let us get into the details of V-Can Network. A case in Crime No.42/2003 was registered on 24-01-2003, under Sections 420 and 506 (1) I.P.C.; under Sections 4, 5 and 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978; under Section 15 of Indian Medical Council Act; under Sections 3 and 4 of Drug and Magic Remedies Objectionable Advertisement Act, 1978 by Central Crime Branch, Chennai City Police, based on a complaint given by one Jayaraman of Chennai.
The allegation in the complaint is that one Senthil Murugan, who had become a member and who had bought a magnetic bed, falsely induced the complainant that if he purchases a magnetic bed for Rs.5,990, he would in turn become a member and if he in turn introduces two more members, he would make quick money to the tune of lakhs of rupees and thereby cheated the complainant.
As per definition 2 (c), money circulation scheme or multi-level marketing or whatever by name called, is a fraud being played on the hapless and innocent public by way of manipulation and deceit. It is the case of the respondents that inferior quality products are sold with false claims at exorbitant rates while the products are worthless and thereby they cheat the public.
Likewise, the members/distributors are falsely induced by selling inferior products at exorbitant rates which are worth nothing and in turn for them to make quick or easy money.
The members/distributors have to falsely induce more members. It is demonstrated before me that as per that scheme, every member/distributor has to be necessarily enrolled with a membership fee which is taken by the petitioner/promoter to buy their products and each member/distributor has to falsely induce and enroll more members and if that is done, he gets a minor share of the ill-gotten wealth and thereby the chain continues. The intention of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 was to prevent white collar crimes being perpetrated on hapless and innocent public. It is the case of the respondents that the preliminary investigation prima facie discloses that the petitioner/promoter company is involved in money circulation scheme, thereby whatever money is paid to a member/distributor is money paid by the members themselves to a minor extent and the major part is illegally kept by the petitioner/promoter company by false inducement and false representations.
It is also demonstrated that unless the member/distributor falsely induces others to become members/distributors, they cannot make quick or easy money and the money paid or circulated as commission or incentive is only the ill-gotten money made from other members/distributors and the chain continues by manipulation and deceitful false claims.
Learned senior counsel for the petitioner has contended that though this system already existed in this country and multi-national companies are doing the same business, the petitioner-VCan Network alone was singled out and the police have taken action against them.
For this, the learned Government Advocate has brought to notice that they have already taken action against promoters of Cymbolic Multi-crore company and arrested the persons concerned. It is also stated that their bail applications were dismissed. He also brought to notice that apart from this, a case has been registered in Crime No. 230/2003 on the file of Inspector of Police, Central Crime Branch, Chennai against Japan Life company which is also indulging in the sale of magnet beds and about 80 persons have already been arrested and later released on bail. The above particulars show that there is no mala fide intention on the part of the respondents and there is no basis for the allegation that action was taken against the petitioner alone.
Though the V-Can Network management claims innocence and their business being lawful, the same has to be ascertained only after thorough investigation, final report, trial, evidence and judgment and in such a circumstance, the grievance expressed by V-Can Network and the distributors cannot be gone into in a writ jurisdiction under Article 226 of the Constitution of India. It is needless to mention that it is open to them to put-forth their defence before the appropriate forum/Court if their business/activities are lawful.
In such circumstances, since the investigation is at the crucial stage, any interference in the investigation will seriously hamper and prejudice the investigation.
This Court hoped that the Investigation Agency will undertake the task promptly and complete the same expeditiously. With the above observation, both the Writ Petitions are dismissed.

7 comments:

Unknown said...

SHYAM JI NMART KA KYA HUA UPDATE TO KIJIYE, SUNA 25 KO OPEN HO RAHA HAI SITE AAPKA KYA KHAYAL HAI?

kadavul said...

Mr.Shyam
i think u dont have any work.that the reason u past old matters now.
V-can closed more than 4 years.And u dont know about v-can plan as well as nmart and no other company plan also.
so that u want become a hero with out any knowledge.

KORAPUTIA BANDHU said...

links of nmart story , fraud and more..
http://nmartcomplaints.blogspot.in/2012/09/nmart-runs-cis-based-mlm-under-guise-of.html

http://nmartcomplaints.blogspot.in/2012/09/nmart-cheated-millions-in-name-of.html

http://www.grahakseva.com/complaints/10908/nmart-cheating-with-customer-playing-with-customer-money
list of complaints on grahak seva from 15 to 23 sep 2012.
Suffering from Nmart shops
By S.Ramachandra on 23rd Sept. 2012
N mart deceived the investors
By Dr.V.Durga Prasanna Babu on 23rd Sept. 2012
Neither receipt gift nor re-purchase monthly rs-220/-
By Kailash Chandra Bandha on 22nd Sept. 2012
Nmart card lost
By Sudha Chourey on 22nd Sept. 2012
I want to take money back from nmart is it possible?
By Narasu Naidu Ambati on 21st Sept. 2012
Nmart multi level networking marketing complaint
By K Rajesh on 19th Sept. 2012
Nmart is garden customer is flower
By Ibrahim on 19th Sept. 2012
N mart card is not working properly
By Arundhuti Dutta on 19th Sept. 2012
Nmart wale ki shikayat
By Munna Kumar Group (Hazaribag) on 19th Sept. 2012
No stock in nmart Hyderabad mall
By Ravi on 19th Sept. 2012
Not got suit lenght and card from Nmart
By Vikas on 19th Sept. 2012
Loss of money in nmart
By Ch.Durgaprasad Rao on 18th Sept. 2012
Nmart MLM company fraud
By Dr.Vikas Jain on 18th Sept. 2012
Nmart not satisfying customer
By Mudassar Mahemud Bera on 17th Sept. 2012
Nmart card not received, joined in april 2012
By Mohd.Salim Khan on 17th Sept. 2012
Nmart cheating people
By Pavankumar on 17th Sept. 2012
How to activate Nmart card
By Manuj Kumar Malviya on 17th Sept. 2012
Why nmart website not open and it working for devlop so how can I see my account details pls tell me
By Sandip on 16th Sept. 2012
I received card from n-mart, but last three months it is deactivated
By Mr Nirmal Chandra Nayak on 15th Sept. 2012
Forgot my Nmart password
By Kapoor Singh on 15th Sept. 2012

Unknown said...

MR .SUNDER SHYAM, HI MUJHE MLM KI LAW KYA HAIN BATAYEN,NO-1 MLM KI POWER STRONG HAIN,4YEARS ME AAP KA NETWORK STRONG HO TO CROREPATI BAN SAKTE HO, BAKI ANOTHER WORK ME NAHI,HA YE HO SAKTA HAIN COURPTION KARO TO KABHI BHI CROREPATI BAN SAKTE HAIN JAISE HAMARE DESH KE POLITIONS, MERA AAPSE EK SAWAL HAIN KI AAP DESH BHAKAT HO AUR SAMAJ KI CHINTA HAIN TO,YE BATAYEN KI FROUD KAUN HAIN ????????(1)POLITIONS OR(2)MLM COMP. LAW RULE BATAKAR KUCH LOGO KO PARESHAN KARTE HO, AGAR AAP SACHE DESH BHAKHAT ,SAMAJ SEVI HO TO PAHLE UN POLITITIONS PER LAW KO FOLLOW KARE ,REMEMBER NMART LAKHO LOGO KA FUTURE HAIN OR EMPOLYMENT, AAP KYA DE SAKTE HO BATAYEN............SIRF LAW KI PARIBHASHA ,ISSE INSAN KO KUCH NAHI MILTA, SAMJHE AAP BAAR BAAR SOCHE,LAW IS INOCENT PEOPLE,POWER FULL PEOPLE IS NOT LAW????????????????maine ulta naam likha hain sochen kyun

KORAPUTIA BANDHU said...

DEAR THAMBI SWAMI AND OTHERS....WHU R FANATICS OF GS SHEKAWAT....AND FOOLS WHU BLAME, ABUSE, AND EVEN INSTIGATE PEOPLE TO TAKE ACTION AGAINST WHITLE BLOWERS LIKE SHYAM GARU.
kindly anSWER SOME QUESTIONS TO UR INNER HEART..
IN YES OR NO...IF U GET 90% FALSE U WIN...IF I GET 90%TRUTH,POLICE,SHYAM JI, AND TRUTH THROUGH JUDICIARY WINS...........READY??
1)SINCE sept 2011PEOPLE HAVE BEEN DESPERATE FOR awards ?
2)NO STOCK AT MALLS ?
3)CONSTANTLY DECREASING ROYALTY ?
4)suppliers outstanding PAYMENTS FROM 4 MONTHS ?
5)SERIES OF paid interviews/ADS WITH PEOPLES MONEY ?ibn7, aajtak, etc
6)nctls PROBLEMS ? they have s/off cell phones.
7)PROMISE SINCE JULY THAT ALL WILL B WELL IN 2 MONTHS ? DID IT HAPPEN ?
problem IS NOT SOLVED BUT SITE IS CLOSED. Cmd ARRESTED IN ipc 420/3,4,5 BY AP police. HE GOT BAIL, BUT devanimore, khan aND mushrif ko ander daal diya.
8)A company WHOSE director ROTATES AROUND courtS , WHOSE site aND bank accountS HAVE BEEN ORDERED BY COURT TO BE SEALED???WHAT SHOULD ITS CUSTOMERS/employees BE DOING ? ?
9)nmart IS MAKING PEOPLE LIVE IN A ANIMATED WORLD BY PROMISING THEM THE INFINITY ?
10)binary INCOME OF AGENTS HAVE BEEN STOPPED?.
11) TDS not deposited in PAN of individuals and Govt.
Pin point HAVE NOT GOT COMISSION SINCE april
HOW AND WHY SHOULD PEOPLE WORK AND IN WHICH BLIND BELIEF FOR NMART?
. ?
11)IN 1 YEAR GS SHEKAWAT PURCHASED AA CAR OF 3.8 CRS AND IS SHAMELESSLY DISPLAYING IT ...U R HAPPY???? IT IS UR MONEY
SO MANY DAYS TO REPAIR A SITE??? AT LEAST A AUTO GENERATED SLIDE COULD HAVE BEEN PLAYED.
. Associates ke awards pe rona, vendours ki payment pe rona. Har problem pe sirf ek khokla promise.Jara socho 4saal baad kya hoga ? kese ada karegi nmart 11000 rs.Bonus ki commitment ??

agar ye sab zooth he to phir...
aye din akhbaro me nmart ki negativity kyo chhapati he ?
agar nmart asal me profit me chal rahi he to phir...
bar bar no comp purchase offer q dete jaa rahi he ??
agar mncs k liye india sabse bada market he to...
yaha ke problems chhodkar nmart bahar q bhag rahi he ???

aaj apko inn sab bato par sochane ke liye waqt na ho to koi baat nahi. Kal ek bade scam me jail jana pade to waha soch lena. Wahapar samay hi samay hoga.

Yad rakhna police ka danda jab padta he to achche achche sidhe ho jate he. Waqt bhar jata he to kalmadi, ho ya raja ho kanimodi, sasural(jail) to jana hi padta...
etc....
KORAPUT odisha NMART VIRODHI MORCHA.....SABKO SUDHAREGA....SAVE MONEY 4 BETTER USES ...

my nmart updates said...

shyam, why u not giving approval to my comment,ramesh

jaiinfotech said...

kya Riyaz Mushrif arrest hue hai? NMART ki website kub tak open ho rahi hai?