Tripathi RR (Professional) 11 May 2012

Laws enacted related to mlm companies in india

I need to understand the following legal issues in relation to the numerous Mutli Level Marketing companies in India who attract investments from common citizens through websites/direct marketing etc.

Under which laws can one stop these illegal activities?
Under which legal process can one send notices to such companies without having any grievance but in anticipation itself?
How does one prosecute such companies?
What are the processes under which one can ensure that people/promoters/directors/marketeres of such rackeetering companies be behind bars for a long time?
Need to know all legalities behind such action.

All suggestions/legal points welcomed.

In recent times the following companies have been shut down:

SpeakAsia

City Limousine

RMP

Seven Rings

Gold Sukh

1 Replies

Vishwa (translator) 11 May 2012

The term MLM has now fallen into disuse, probably because of the disrepute attached to it and these operators now go under the label of network marketing or pyramid marketing.

As far as I know but I am no expert, there are no laws in India governing such activities specifically. You would need to seek relief under common law.

The people who get duped by such operators are victims of their own gullibility, their greed to earn quick and easy money and a desparate need to find employment or useful activity.

Nowadays, there is greater awareness about network marketing and intelligent people tend to avoid it automatically. But these operators attract a specific profile of persons and they know how to milk their kaboothars.