Citizens' Issues
Cabinet clears right to time-bound services bill

The bill envisages penalty of up to Rs50,000 against a government official failing to provide his or her duties

The government on Thursday gave its assent to a bill aimed at providing time-bound delivery of services like passports, pensions and birth and death certificates, among others, to citizens.


The Right of Citizens for Time-Bound Delivery of Goods and Services and Redressal of their Grievances Bill, 2011, was approved by Union Cabinet at a meeting chaired by prime minister Manmohan Singh.


The bill envisages penalty of up to Rs50,000 against a government official failing to provide his or her duties, official sources said.


It lays down an obligation upon every public authority to publish citizen’s charter, stating therein the time within which specified goods shall be supplied and services be rendered and provides for a grievance redressal mechanism for non-compliance of its provisions.


The sources said the issue of inclusion of NRIs in the ambit of the bill to access time-bound delivery of services will be dealt with separately by the ministry of personnel, public grievances and pensions and the law ministry.


The proposed legislation, spearheaded by Department of Administrative Reforms and Public Grievances, also mandates a public authority to establish a call centre, customer care centre, help desk and people’s support system to ensure time-bound delivery of services.


It also seeks establishment of public grievance redressal commission at the Centre and every state.


According to its provisions, a person aggrieved by the decision of the commission may prefer an appeal before the Lokpal at the Centre (in case of decision by the Centre’s public grievances redressal commission) and the Lokayuktas in the states.


All services provided by both the Centre and the state governments will be extended to citizens in a time-bound manner under the bill.


Addressing a joint sitting of Parliament last month, president Pranab Mukherjee had said that his government attaches priority to the enactment of the legislation proposed in this regard.



Vaibhav Dhoka

4 years ago

A long awaited legislation will give some relief to citizens.


TD Sharma

In Reply to Vaibhav Dhoka 4 years ago

It is an eyewash only, rest assured. I have known honest and dedicated civil servants who spent decades in the govt. protecting the interests of the govt and trying to serve people and then kicked on retirement while money-making and corrupt people have been and are still being rewarded with post-retirement sojourns. Nothing will really come out of this election stunt, and at the most only a few low rung clerks will be hanged to save the top IAS,. IPS, IFS, CSS bureaucrats, etc. The common man shall stand and be kicked!

MK Gupta

In Reply to TD Sharma 4 years ago

Very true-men may come and men may go, but the IAS (and CSS, its cohort, and the IPS, apart from the smaller players in the civil services) shall go on for ever.

New debenture redemption reserve provisions: Will they promote or demote the bond market?

Most companies retire debentures by issuing another set of debentures, hence, most companies don’t park funds for retiring debentures by creating any fund. The bond market will surely get affected negatively by such a move of the ministry of corporate affairs

Section 117C of the Companies Act, 1956, requires every company issuing debentures to create a debenture redemption reserve (DRR) for the redemption of such debentures and transfer an ‘adequate’ amount from its profits every year to such DRR until the issued debentures are redeemed. Hence, every issue of redeemable debentures requires creation of a DRR. The said Section, however, does not provide the meaning of the word ‘adequate’. In the year 2002, the ministry of corporate affairs (MCA) issued a circular1 clarifying the meaning of ‘adequate’ and provided the percentage which is mandatorily required to be transferred to DRR by certain class of companies. However, to develop the bonds market, MCA issued another clarification circular on 11 February 2013 (Circular 2013)2.


In addition to imposing the condition of creation of a DRR by every company for every issue of debentures; whether public or privately placed, the Circular 2013 further requires every such company to park, on or before 30th day of April each year, a sum of at least 15% of the amount of its debentures, maturing during the year ending on the 31st day of March next following, in any one or more of the following methods:

  1. in deposits with any scheduled bank, free from charge or lien;
  2. in unencumbered securities of the Central Government or of any state government;
  3. in unencumbered securities mentioned in clauses (a) to (d) & (ee) of Section 20 of the Indian Trusts Act, 1882;
  4. in unencumbered bonds issued by any other company which is notified under clause (f) of Section 20 of the Indian Trusts Act, 1882.

The money so parked can be utilized only for the purpose of repayment of debentures maturing during the year. The amount remaining deposited/ invested shall not at any time fall below 15% of the amount of debentures maturing during that year ending 31st March.


The unclear language of Circular 2013 mandates not only every company; whether listed or unlisted, private or public, to create a DRR for their issues; whether public or private, listed or unlisted, it also imposes a stringent condition of parking a sum equal to 15% of the value of debentures maturing during the year separately in the beginning of the year itself. The impact of the Circular 2013 on the companies issuing debentures, with respect to maintenance of DRR, can be explained better through the following charts:








Status of housing finance companies

The Circular 2013 issued in response to the need for development of corporate bonds/debentures, does not clearly state any specific amount of DRR to be maintained by housing finance companies (HFCs) registered with National Housing Bank (NHB). It provides an exemption to privately placed issues of debentures by NBFCs registered with RBI only. However, the HFCs which are registered with the NHB will not get any exemption and accordingly, the Circular intends to treat HFCs at par with the Non Banking Non Financial Companies (NBNCs) and hence, HFCs will also be required to maintain a DRR of 25% of the value of debentures in case of their public as well as privately placed issues of debentures. Representations will surely be made before the MCA to treat the HFCs at par with the registered NBFCs.

Status of NBFCs

The only benefit from the Circular 2013 is that it has reduced the DRR requirements for registered NBFCs3 from 50% to 25%. However, at the time of issue of Circular 2002, concept of Core Investment Companies (CICs)4 was not in the picture. CICs are the class of NBFCs which does not require registration with RBI if they fulfill the prescribed conditions. Such companies are NBFCs but not registered. The Circular 2013 covers only registered NBFCs, hence, it would mean that the CICs have also been treated at par with NBNCs.

Status of Private Companies

In Circular 2002, the last category included manufacturing and infrastructure companies only. Service and other companies were not specifically required to create any DRR under the Circular 2002. However, the vague language of Circular 2013 uses the terms “other companies including manufacturing and infrastructure companies” which would mean that the Circular 2013 covers every company. The Circular 2013 further covers issue of debentures on private placement basis by “unlisted companies” and hence, it would cover private companies also within its ambit. Though the intent of the issuing authority would have to cover unlisted public companies only, the vague language now would cover private companies unless another clarification is issued by the MCA.

Stringent condition of earmarking 15% of the maturing amount of debentures every year

The Circular 2013 requires the companies issuing debentures to earmark an amount not less than 15% of the amount maturing in a particular year by way of investment and deposits in a specified way. This is a new requirement inserted by the Circular 2013 as neither the Section 117C of the Act nor the Circular 2002 stipulates such requirement. Companies issuing short-term debentures with a maturity of less than 15% may not require to park such funds, however, other issues of debentures will require such earmarking of funds and the HFCs and unlisted and private companies may face trouble.

Circular 2013: Whether prospective or retroactive?

The Circular 2013 nowhere specifies the effective date of such drastic amendment. It is not clear whether the new requirements of DRR will be applicable only to the debentures issued after the date of this Circular or will it be applicable even on all the issues standing in the books of the companies. As the Circular 2013 is providing clarification to Circular 2002 read with the Section 117C of the Companies Act, in our view it should come into effect with immediate effect and companies may require ear marking a sum equal to 15% of value of debentures by 30 April 2013 for the debentures maturing during the year 2013-14.

Whether the Circular 2013 is superseding Circular 2002 and the Act?

Apparently, yes. The Circular 2002 was issued as a clarification to Section 117C of the Companies Act and Circular, 2013 has been issued to provide further clarification to both the Circular 2002 and the Section 117C.

Whether the MCA has authority to impose such conditions?

Article 246 of the Constitution of India empowers the Parliament exclusively to make laws in the country with regard to matters included in Union List and State Legislature to frame laws for matters stated in State List. Corporate Laws being one of the matters of Union List can be framed and made by the Parliament only.


Section 117C does not delegate any power to MCA to issue any binding circular. However, the MCA had issued a clarification circular in 2002 and now another clarification has been issued in 2013. With due respect, the authors raise a question that in absence of any such power delegated by the Section 117C, can the MCA issue such circulars which is more in nature of law than a clarification?


While the intent of the government seems to be benign, it seems that the issuing authority has ended up creating confusion in case of HFCs, and more importantly, by adding a requirement for creating a reserve fund. This was no where there in the Circular 2002 issued by the MCA and is nowhere therein the Companies Act itself. Most companies retire debentures by issuing another set of debentures. Hence, most companies don’t park funds for retiring debentures by creating any fund as envisaged in the Circular 2013. The Circular 2013 may act as hindrance to such companies. The bond market will surely get affected negatively by such a move of the MCA.


See our Primer on Debentures at:


Read other articles by the authors here:


Dubious MLM schemes thrive while regulators and central and state governments remain apathetic

An RTI query revealed that the ruling establishment and regulators have done little or nothing to protect the consumers while simply “passing the parcel” to each other

Two years ago, Moneylife Foundation sent a memorandum to the Prime Minister’s Office (PMO) on Multi Level Marketing (MLM) or Ponzi schemes which are luring and fleecing millions of Indians. A Right to Information (RTI) query on the action taken, if any, on our memorandum shows that the document is being passed around like the parcel in the nursery rhyme, with no action whatsoever. Interestingly, the PMO sent our memorandum to the ministry of finance, which in turn passed it to the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), which did nothing. A parallel effort pursued by us with the ministry of corporate affairs and the ministry of consumer affairs has been equally ineffectual—but at least in that case, one learns that a multi-ministry group is looking into the matter. It is not clear if the finance ministry is a part of it or not.

On 17 May 2011, Moneylife Foundation sent a memorandum (click here to read the memorandum) to the Prime Minister’s Office (PMO) seeking its urgent intervention in dangerous MLM schemes, especially online survey company SpeakAsia is financial finished; its applicants have lost heavily, but the dubious management continues to make news for offering a fraudulent exit option to its investors, which the Times of India reports, is a hoax. (full story: Meanwhile, Moneylife’s memorandum to the PM received no response for nearly two years. Then on 5th January 2013, Aditya Govindaraj filed an RTI query on action taken, if any. We received a response with documents and file notings on 7 February 2013 which offers this ineffectual sequence of activity.

According to CPIO of PMO, Salil Kumar, the PMO forwarded the Moneylife Foundation’s Memorandum to the Secretary, Department of Economic Affairs (DoEA) on 31st May 2011 (an ’attested‘ copy was enclosed) and asked them to respond to the RTI. The DoEA in turn forwarded it to SEBI and RBI for their comments on the action to be taken against MLMs. This was done on 27th May 2011.

SEBI’s responded to the DoEA on 23 June 2011 saying that MLMs do not come under its purview. It said that MLMS are under the Prize Chits and Money Circulation Scheme (Banning) Act, 1982, which was administered by the state governments. It is well known that state government simply ignore letters from various regulators, asking them to act against MLMs and Ponzis. The SEBI response however is strange. Most MLMs are collective investment schemes of sorts and would come under its regulation.

Interestingly, the RBI under the present dispensation simply ignores queries and it seems to have ignored the letter from the DoEA, forwarded by the PMO as well.

Essentially, this means that the ruling establishment is uninterested in doing anything about massive MLM and Ponzi schemes which are raising tens of thousand crore rupees through fake promises. The promoters of these Ponzis, who have become immensely wealthy, have quickly established political connections, especially with various state governments. Moneylife Foundation has been waging a long battle to get in some rules to protect investors, but the government seems uninterested.




3 years ago

I did not want to post this but since these QNETERS prompted and instigated me so BE IT...

The esplanade court today heard the remand application of the state i.e EOW.

Mr. Abad Ponda appeared on behalf of all the eight arrested top leaders of QNET in mumbai.

After hearing the arguments of both the sides...the judge has had remanded all the eight arrested top leaders of QNET in mumbai in police custody till the 29th...

And more and more people from QNET are now coming forward and giving statements to the EOW mumbai and joining my case as a "witness"...QNET days are numbered now...the deck of cards is collapsing..


3 years ago

Hello Friends, since i got my FIR registered in the month of August, it has been three months QNET has failed to re-start the "SYSTEM" In mumbai. First they had to cancel their grand celebration planned to be held at "Holy Spirit Hospital" Hall in andheri-east.

Later these QNETERS tried to do a "system" in Islam Gymkhana and had to cancel that also.

It is said that the third time these people placed advertisements in newspapers of mumbai to invite people into investing into a "Business Opportunity" and were holding that meeting in hall in dadar-west.

It is being said that today morning crime branch officials raided several residential places of QNET leaders all over mumbai and the following were detained/arrested.

Vivek Kumar Singh

Shashi Bushanrameshwar Pandey

Namrata Pandey

Sabina Mathews

Vijay Mathews

Jagdev Singh Parmar

Rohit Chandra

Mahesh Bhansali

All the above people have shared the "proceeds of crime" and huge amounts of money had been transferred into their bank accounts under the guise of "commissions paid". Sources say these huge amounts of money has been raised by running a money circulation scheme in India under the guise of "ecommerce" by QNET India.

It is now upto the rest of QNET IR,s to decide whether they want to continue to be part of this crime of "money circulation scheme" or they want to join the investigation and help the police and become "Government Aprovers".

It is your choice you want to become a accused in this crime, because some day some one will surely report you, it is better to give up this "white collared crime" now itself, then land into trouble later.

I appeal to you all IR,s to give this anti national activity once again, Please do not forget this is not happening the first time. Previously also in chennai assets,properties,cars, bank accounts etc of all TOP IR,s and team leaders were sealed by chennai CID.


3 years ago

Now Absconding Accused Vijay Easwaran disowns "QNET INDIA"

These are experts taken from the interview of Absconding Accused Vijay Easwaran

“QNET operates in India through a Franchise company hence Absconding Accused Vijay Easwaran has no involvement in it, he is neither a director nor a shareholder of Qnet India.

He further threatened to seriously think of Pulling out of INDIA.”

BOSS, you are talking of pulling out? YOU and YOUR SCAM will be KICKED out of my nation INDIA wait and see and this will not be the FIRST TIME that you are KICKED at your FAT A$$ and thrown out, will follow your SHAM company and expose it till you call it QUITS, the sooner you PULL OUT the better warna you know that saying “Badey Beaabroo ho kar terey dar sae nikley”

So Mr. Absconding Accused Vijay Easwaran if you have a BRAIN to think of new new SCAMS there are people who can work together to EXPOSE your SCAMS...r u ready for it now….hahaha


3 years ago

Seminar of Illegal MLM/Money circulation/Binary Marketing Schemes on 20th of September 2013 at 3.30 Pm, Free entry, Please register A.S.A.P.

Come on Friends a golden opportunity for us LIKE minded people to come together and share our thoughts and experiences regarding this menace being played in India on the name of MLM/Network marketing and what not. LETS MEET !! YES !!

Saradha, Speak Asia, QNet, City Limouzine, StockGuru India, Sahara, MPS Greenery, NMart Retail… All these start as hot, new, investment opportunities and as alternative careers that offer high earnings and ways to escape the drudgery of 9-to-5 jobs. But, eventually, most of them fetch only small additional income and, worse, encourage you to lure and mislead your closest friends and relatives. You need to know how multi-level marketing (MLM) schemes and ponzis can destroy a large chunk of your savings or push you into debt. Understand the mechanics of these schemes, the laws that are applicable to them and why regulators fail to rein in dubious enterprises before they cheat thousands of people. Understand the basics of how to keep your money safe—the first step to smart investment! Collective investment schemes are not even under SEBI's regulation.

Sucheta Dalal, founder trustee of Moneylife Foundation and Managing Editor of Moneylife magazine, is one of the best known financial journalists in India. She has worked with many of India's leading newspapers including Times of India, Indian Express, Economic Ti mes and Business Standard. She was awarded the Padma Shri in 2006 for her investigative journalism spanning over 25 years which included exposing the Harshad Mehta scam in 1992. Sucheta Dalal will be conducting this seminar.

For registration please Contact:
Seraphina / Komal
at 022-49205000 or
email [email protected]
Log on to


3 years ago

This video is so FUNNY, every one should watch it..will lighten up your day :)

Say thanks to creator James for doing this :)


3 years ago

All these words or sentences means the SCAM called QNET…

Listed below are some of the lines or words which mean nothing but QNET aka SCAM

Owner at Global marketing project
A Visionary at Global Marketing Project
Retired at I am THE COMPANY
e-Entrepreneur ! at Entrepreneur
Co Founder at My Office My Health
Global Marketing Projects at E- Enterprenuer
Works at Self Employed and Loving It!
Global Partner at Qnet
Worked at I am unemployable
Business Owner at Business Owner of a Global E-Franchise
Worked at Qnet
Past: THE V and QNET | Faith Egypt | Team Bring It

Global Entrepreneur at QNET (Official)
Past: InService Brotherhood Bootcamp
Works at Achieving the Dream
Chief Executive Officer at Unemployable
Works at Retired
Prosperity Consultant at Faith - Empowering You, Life & Business Coach, JPO Consultant, Networker at Tigers - Leveraging Vision andIndependent Consultant at QNET (Official)
Past: Genpact
Studies Leadership management style at Swiss E-learning Institute
Former Partnership at QI intl
Works at Self Employed and Loving It!
Worked at Honkong Based Multi Billion Dollar Company
Worked at Self-Employed (Business-Entrepreneur)
Retired of a JOB at Social Entrepreneur
Partner at ßusiness of Imp0rts & Exp0rts
Owner at E-Entrepreneur
Works at
Chief Executive Officer at Briltime Corp

If you see any of the above keywords on social media profiles of people trying to catch up with you ..just RUN RUN RUN :P


Monique Bessette

3 years ago

Timeshare scams are also something to beware of. It would be good to see legislation whereby timeshare companies can only charge "reasonable" maintenance costs and not use this annual fee to fleece people's bank accounts. PS - I do not own a timeshare, never have and never will unless legislation is introduced to protect buyers. This is a good article on how to avoid being scammed:

Sandeep Patel

4 years ago

Need stern government action to curb the menace .... the franchisee Vihaan Direct Selling would be a good place to start the investigation and this time notices should be sent to all the top earning independent representatives ..... they are the main source of this plague .....

Sandeep Patel

4 years ago

All IR's (customer-distributors) in service tax parlance, with an annual income of over 10 lacs should be paying service tax for advertising and promotional services which they provide to Qnet as well as to the common public for promoting and distributing Qnet's products... Is that happening ??? ... needs to be checked by the IRS, RBI, DRI etc and the defaulting parties should be penalised. As one knows and from the various articles and pages published on social networking sites, the income generated from kthe business is huge for the top 20% of the members of the pyramid and there exists the potential of a revenue loss for the Government in case the IR's or Qnet or Vihaan or Vanamaala any of their subsidiaries (with multiple cross holdings) fail to submit / pay the requsite taxes. one needs to understand that all IR's themselves are business entities and need to have certain registrations as mandated by law. The bifurcation (if any) of the TDS for commision payouts to IR's by Vihaan/ Qnet needs to be checked.

Having worked in the area of Excise and Service tax as a professional one basic premise I have learnt - Ignorance of the law is not an excuse for not following the law and the above mentioned rule on service tax applicability for customer-distributors have been in existence since 2006... Lot of money for our Government especially from the top 20% of the earning members of Qnet or could be more ...

I am not saying that the business is illegal, however, within the existing framework of the law the above needs to be checked and Vihaan's financial records and payouts to all IR's should be verified.

The policy and procedures of Qnet clearly state that an IR is a contractor and not an employee of the company... Therefore QNet themselves declare that IR's are outsourced agents who are promoting their products and services via word of mouth ... earning a commision for doing so and are therefore individual business entities ....

Some interesting facts to be noted:

Also a point to note that while Vihaan is registered with the MCA since Oct 2011, they have yet to file their balance sheet with the ROC at Bangalore. While the e-filing status is active, the digital signature certifacates have expired. One of the directors also holds a position of a director in another company where the same phenomena can be noticed. Understand from colleagues who are CA's that while DSC's are not mandated by MCA it brings about a transparency in the manner in which a company operates.

I was also little surprised to see that one of the directors of Vanamaala tourism (as listed in the MCA company master data) is also an employee of QVI club... A first glance seemed to be a conflict of interest... QVI earns money from the services it sells to IR's, the director also earns money from the services rendered by Vanmaala (takes home a neat profit) .... but who pays for it ... all the IR's. After all the IR's are the only customer this company has....

Prana health resorts - a QVI club resort is owned by one of the members of the management team of QNet... So while an IR utilises the package and also pays Prana Health resort for occupancy, also pays Vanamaala (owned by an employee of QVI) for availaing the services and the yearly usage fee ... I am not sure any more as to what pay backs are happening in the entire system ...

All this has been gathered from the internet ... are facts based on actual links and photos from various forums and I have validated the same with a couple of IRS officers who are known to me... I would like to use this forum for the "MOTIVATED IR's" to check and see for themselves as to how deep the water is before making any further comments ... The social media truly is the 9th wonder of the world....

Sankara Narayan

4 years ago

One US national who is familiar with the way India 'works' comments that there is no sense of urgency in this country. He might be referring to our ' chaltha hai' atttude Cant the govt make it obligatory for the electronic & print mediato carry messages of caution to the public regarding MLM schemes , magic remedies just s in the US for a minimum of 10 % of advertising time?

Alok Tholiya

4 years ago

There r dubious timeshare marketing companies too and they too r thriving like RGBC and Mahindra. An investigative story and meeting by Money Life of all Timeshare members will go a long way

TD Sharma

4 years ago

How do you expect the govt. to act in this regard, with these outfits having spent (invested!) hundreds of crores of rupees lobbying for obtaining this space in the market? Our politicians are blamed for all ills-but what about the time servers in the top bureaucracy? Whatever you may write, nothing is going to happen and the MLM entities all over India and the govt. sponsored chit funds in West Bengal shall keep thriving without any whiff of any regulation!

ganesh gopal k agarwalla

4 years ago

Dear Team

Even in the Case of SAHARA ... i have an investment in one of my nephew in the said scheme of sahara which was got ceased by SEBI, but intrestingly i dont get any payment from sahara but the agent called me and told that scheme was changed to another scheme and the money will again be given to me after some more years ..when i asked the agent why you do such changes ..she replied the scheme has got changed to another scheme. but in subsequent days i found in Economics time written in bold and in the cover page that the truth reveals it self and explain what they have paid to the investor and whats remain due..but my claim is that i havnt get any such payment nor any written intimation for the changes of such scheme.


4 years ago

Very strange that these Ponzi schemes which loots people of crores of Rupees draws blank response from SEBI, who should be solely responsible to look into the matter and punish the looters.

In Gujarati, there is famous quote " Chalak chalanu, Ole gher Bhanoo"
meaning 'it is not my job; go and contact some other person.'
Meanwhile, can Moneylife oblige the people by publishing these PONZI schemes and advise people to stay away.

Dhiraj Rambhia

4 years ago


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)