Pyramid sceme (mlm)
abhi sachdev
(Querist) 27 July 2014
This query is : Resolved
Hi!I was informed by an old colleague about a business model and was asked to meet one of the company's head for a meeting at CCD in Janpath, Delhi. He proposed me to join for a partnership at 3 lack signing amount and work together to market, strategic and sell some popular brands like electronics,luxury, etc.He did not provide any details about business process or company name.
Now I am scheduled to meet him on 27 july, Sunday at 3pm and he asked me to bring cheque book to finalize yes or no in that meeting only where he may explain his business or company.
I request you to tell me if this is a pyramid company; if yes: and is it illegal ? can i do anything at this point to file a criminal case against them or inform police.
malipeddi jaggarao
(Expert) 27 July 2014
Avoid such meetings. There is every possibility of cheating.
Why do think of filing criminal case? You can not go on filing cases on suspicious grounds. Where is the cause of action for taking action? Better not to waste time on this type of matters.
P. Venu
(Expert) 27 July 2014
First of all, avoid situations which you are uncomfortable.
Guest
(Expert) 27 July 2014
MLM schemes are mostly disadvantageous to the members on following account:
1) First of all they won't reveal their strategy and other stringent terms before you actually fall in to their net and shell out huge amount;
2) Secondly, as a pre-condition, you have to purchase a kit with very costly goods, which normally may not be of any use to your households;
3) Normally the goods are quite costlier, as compared to those available in open market market;
3) If you are not shrewd marketing expert like those company marketing people, who have been able to convince you through their campaign, you won't be able to make your downline upon whose earning the profit share is distributed to you. So, your investment goes waste;
4) Nobody likes to purchase very costly goods from you when they are able to buy at cheaper rates from open market;
5) You are totally lost in canvassing for the company at your own huge time and money without gaining anything:
6) Only company is benefitted, while majority of members become losers.
So, don't make any payment before you actually read their terms, get yourself convinced after detailed discussion about their pros & cons with your relatives and friends or local expert.
If you are not affected, you can't file a criminal case against the company. But, one thing is quite certain that after you sign their contract on accepting their terms & conditions, you are totally bound and would not be able to sue the company, as legally they are quite sound in framing their terms & conditions.
abhi sachdev
(Querist) 27 July 2014
Thank you all ! I really appreciate the help !
ajay sethi
(Expert) 27 July 2014
agree with experts . best avoid
Devajyoti Barman
(Expert) 27 July 2014
The deal is shouting for its cheating nature.
Guest
(Expert) 27 July 2014
You are welcome.
T. Kalaiselvan, Advocate
(Expert) 29 July 2014
This is a trap laid out for you after which you will find it difficult to come out of it. Better be cautious and avoid such greedy offers.
Sudhir Kumar, Advocate
(Expert) 29 July 2014
Agreeing with Mr Kaialselvan I will add that:-
The scheme is not illegal per-se.
They do not hide anything about the scheme and explain to you.
You have to join the scheme by buying some things at double/triple price. you can use the product or sell to some fool.
Then you have obligation to find some set of fools like you who follow the suit and after roping in god No of idiots your investment starts coming back and when each fool keep roping truck load of fools then your income increases.
If the chain is broken at any stage so you are also broken.
The labour involved in this project will not allow you to devote to your profession.
Sudhir Kumar, Advocate
(Expert) 29 July 2014
In case you are Govt servant there can be big trouble (for joining such scheme) even if you are devoting fully to the professional commitment.
I can elaborate if you so desire.
V R SHROFF
(Expert) 29 July 2014
AVOID SUCH TRAPS...
TELL ALL, NEVER PART WITH THEIR MONEY ON THE SPOT, TAKE A MONTH, DISCUSS WITH YOUR FAMILY MEMBERS, WELL WISHERS, PROFESSIONALS , AND DECIDE CALM, COOL, WITHOUT INFLUENCE.
IN SUCH MEETING, THEY BRAIN-WASH A PERSON, AND YOU LOOSE YOUR MONEY-- LEGALLY..
