:: Armoury

:: Messages of Patriots

v Apart from having the powerful Prize Chits and Money Circulation (Banning) Act, 1978 and also the Madras High Court Judgement we have other allies who add upto our armoury with their powerful weapons. Their support varies but it is definitely giving the needed impetuous to the patriots to take up the ongoing battle. These patriots who are our strong armoury have been fighting lonely battles but nevertheless they are stationed at different places, which will help us in this great war. Out patriots feelings are hereby explained regarding the issue.

v According to the Financial Express dated 17/1/99 and 19/1/99 as reported by Veeshal Bakshi it said that “Centre is reviewing these MLM companies”. The Centre was reviewing Amway, Avon, Tupperwar, Oriflame, Modicare etc. As reported …Government sources that these companies have set up a complex system of distributors to show that they were doing wholesale trading to comaflouage their retail business. The Government sources further added that these companies were facing criminal cases in their countries.

v Financial Diary, Oct 21, 2002 – “RBI cautions public on schemes” – RBI cautioned the public against investigating in certain schemes floated in a manner such as sale of Internet Products, Multilevel Marketing, Network marketing, Voluntary gift and multi-link investment which are banned under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

v Sify.com reports – “Amway Schemes are illegal”: Govt. reported – dated Friday – December 20, 2002: - Minister of State for Finance Anandarao, V Adsul in replying in the Parliament has said that RBI has intimated the state police officials that the scheme of Amway India Interprises for cheating a chain of distributors is in violation of law. RBI has maintained the Amway scheme attracts PCMS(Banning) Act, 1978. Even RBI has advised the American Ambassy that Amway scheme attracts the provisions of PCMS(Banning) Act, 1978.

v Outlook money – 17, July 2003 – Darshan Desai in his article “ Greed takes it toll” Analysing Multilevel Marketing, Pyramid Schemes, Darshan Says, these get rich quick dreams – will inevitably turn into night mares. In such Multilevel Marketing (MLM) Schemes the late entrants, is particular, end ups picking the tab for the payments made to the early birds who often take the money …. He further said that Gujarath State alone about Rs.1,000 crore is being cheated by these companies (Modern East India Companies).

v Deccan Herald – Sept 29, 2003, - In the article “The hidden colours of Golden Schemes “ by Hemal Chhapa clears that the referral systems, Multilevel Marketing are nothing but pyramid schemes in disguise that are banned in India under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

v Hindu Buisness Line / Jan 5, 2004 – In the article Ratna Bhushan says “ Amway comes under scanner of Drug Control Authorities. Ratna reports that Amway has been selling food supplements “Nutritional Supplements” diatory supplements without obtaining the necessary licences.

v Business Today October, 2003 – Shailesh Dobhal writes in article “Rs.4,000 Crore scam is making in India” articulately that through Multilevel Marketing Schemes, Network Marketing Schemes, Direct Marketing schemes in country. There will be bigger scam in India.

v The Hindu – Jan 25, 2005 : - “Multilevel Marketing schemes illegal : High Court” The Madras High court has ruled that the Multilevel Marketing (MLM) schemes by whatever attractive name it is called is illegal and that the Director General of Police and other law enforcing authorities must have a watchful eye on all such activities and take timely action”.

v The Hindu – 25-01-2005 – “Couple held for fraud Marketing venture (MLM)”.

v Human Rights Watch – 16/07/2005 “ Tax Evasion, cheating by Network Marketing Companies” by Nagraj M.R. (Editor). Editor clearly states that In India, various Multilvel Markting(MLM) like Amway, Quantum, Modiguard… rmp info tech, guru teak, axe some of these con companies. These companies evade Central and State Sales tax, Excise, VAT etc. In this way crores of rupees of tax is being evaded and the public are even cheated of their principal amount, they have invested. What the government is doing?

v The Hindu – Dec-04-2005 – “ Collector warns traders” Collector S. Vijayarajkumar said the many of the traders are using methods adopted by them to promote sales were found to violate rules pertaining to the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, The Tamilnadu Prize Schems(prohibition) Act, 1979, The Monopolies and Restrictive Trade Practices Act, 1969 and the Consumer Protection Act, 1986.

v Indiatimesblogs – in a article describes MLM as “Morons lose money”, “Moronic Loser’s marketing”, “Many Lost Money”.

v Shri S. Jaipal Reddy, M.P. and Central Minister in his Parliament speech describes MLM schemes in India have become a Nationwide Menace, a nation-wide financial pest…

These are some of the patriotic feelings which are at present in our armoury. Watchout this space for more information.

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