Citizens' Issues
Government to publish names of fraud MLM firms

 

Besides blocking websites of multi-level marketing or MLM companies, the government would also publish names and modus operandi of these companies, which cheat and loot people by promising huge returns on their investments
 
New Delhi: The Indian government has decided to publish names of fraudulent multi-level marketing (MLM) firms and issue alerts to investors to not put their hard-earned money into the schemes run by these companies, reports PTI.
 
The Ministry of Corporate Affairs (MCA) will also upload the names and details of such companies on its website explaining their modus operandi.
 
"The public will be informed about the menace of these firms through an advertisement campaign which will be launched soon. The ministry will take the help of print, electronic and vernacular media to inform the public about the pitfalls in putting their money in these companies," sources privy to the development said.
 
A meeting of the Ministry and Serious Fraud Investigation Office (SFIO) officials in this regard last month also decided that the modus operandi of these companies, which have swindled crores of funds from innocent investors, will be exposed regularly.
 
The SFIO is the investigations arm of the ministry.
 
"The e-governance cell of the Ministry of Corporate Affairs would prepare a list of companies indulging in multi-level marketing and these names will be placed on the website. Public would be informed that they should not indulge in such activities nor get lured by the fraud advertisements of such companies," they said.
 
The government has also decided to crack the whip on these companies operating in the country by blocking their websites and tracking their online transactions.
 
Sources said the ministry has also asked the SFIO to keep a "diligent" tab on such companies and take "strict" action against them.
 

User

COMMENTS

Jay

4 years ago

New MLM website https://ultimatepowerprofits.com/index.cfm

Can anyone stop him. Got mail through reference about this website.

Bharat Lodaya

4 years ago

MCA has decided to publish the names of fraudulent MLM Companies is a nice gesture along with also good companies name should also appear. It is already late. But still it will have a big impact. Better late than never.

Vaibhav Dhoka

4 years ago

MCA should have proceeded by publishing BLACK list of MLM firms long back.But it is still DILLI DALLYING the issue.

REPLY

MOHAN

In Reply to Vaibhav Dhoka 4 years ago

MCA should have proceed long back? Ha Ha. please read this report appeared in the Hindu daily in the year 2003.

http://www.hindu.com/2003/11/08/stories/...

MOHAN

4 years ago

Government to publish names of "fraud" MLM comapnies ! . Are there any "honest" MLM companies?

Protect the regulators: It is in the nation’s interest

“The RBI independence is critical and crucial. It has to be fiercely guarded. But, that does not mean that in shaping monetary policy, the RBI should not consider the fiscal consequences of monetary policies”—Sumit K Majumdar, Professor of Technology Strategy, University of Texas (Hindu Business Line, 6 November 2012)

 
The attempt by the finance ministry to act as a super regulator over all regulatory bodies in the financial sector is getting more and more exposed. This will destabilize the equilibrium which was deftly built up by eminent persons who headed the finance ministry and the Reserve Bank of India (RBI) in the formative years of financial regulation in India (there were not many regulators in the financial sector, almost till the reform days) and consciously maintained by their successors till the recent past.  
 
The recent developments have once again brought to fore the need for the effective use of options like mutual discussion, internal acceptance of extant legal position and traditions by the controlling ministry/ministries at the Centre and providing opportunity to the concerned regulatory bodies to be heard before super-imposing or giving loud instructions on what is felt right by the North Block, which is an act of expediency which should be avoided in a mature democratic system of governance. It is not a comfortable sight to see the government and regulators putting forth their arguments before the courts and media even before such consultations. One wishes, such disputes are resolved amicably across the table. 
 
The finance ministry has made it a habit of asserting its “ownership rights” over regulatory bodies more often than necessary. This does not augur well especially in an open market economy where more and more controls give way to effective guidance and self regulation. In such a situation, the balance of convenience is in not disturbing the autonomy of statutory bodies like the RBI. For ensuring autonomy, a couple of other factors that need immediate review are the selection procedure of incumbents of top management positions in regulatory bodies and their remuneration and service conditions. Where these are kept captive by the finance ministry, the possibility of the FMs expecting master-servant equation cannot be ruled out. 
 
In August 2010 in an article “RBI Autonomy is under threat” (Free Press Journal, 16 August 2010) Nantoo Banerjee had observed that “on paper, the Reserve Bank governor enjoys autonomy of a constitutional authority and in practice, he is expected to work like those favoured few”. The reasons for this unenviable position are not far to seek. If autonomy has to be functional, the people in position should feel the freedom first.
 
Read more news and articles about RBI, here.
 
We all talk highly about the virtues of the private sector, but do we really allow the public sector imbibe its good features? This is a rarity. How else can one explain the difference in the selection procedures of successors for Ratan Tata and NR Narayana Murthy and those for finding CEOs and top managers of public sector organizations? It will be next to impossible to attract talent to these government positions, given the meagre remuneration and short and uncertain tenures offered. It is time to revisit HR practices at the highest level factoring in market realities. The present practice has resulted in compromises on quality and the nation can ill-afford this state of affairs. 
 
Since the beginning of the last decade, the finance ministry has been having problems with almost all regulators. It is not the other way round. Because of the RBI’s premier position, the issues in which the central bank is involved is get media attention. Even the Financial Sector Legislative Reforms Commission is being manipulated to making existing regulatory system ineffective and centralise controls in the finance ministry/GOI. The initial effort to super-impose a body to oversee the functioning or coordinate among various regulatory bodies and give it a permanent and legal status had ab initio met with a negative response. Now the government is trying alternate routes to encroach on the autonomy of individual regulators. The threat to RBI deputy governor Subir Gokarn’s extension, FM’s threat to “walk alone” and the media report about “Finmin Scan of RBI’s Balance Sheet” are all proving these fears right.
 
The sound health of the financial sector can be ensured only by allowing all regulators and supervisors in the sectors including RBI, SEBI and IRDA to feel the freedom to perform their mandated responsibilities efficiently, within the statutory framework. Presently, their well-intended policy initiatives and even administrative actions are being pre-audited and guided by a finance ministry which itself is suffocating under compulsions of coalition politics. 
 
The prime minister, who knows the harm strained relationships between regulators and FM can cause to the economy, must immediately intervene and try for a breakthrough. If the buck doesn’t stop there, we will see more and more of controversies like the present one, capable of destroying the gains made by the Indian economy, mostly during the period Dr Manmohan Singh was in charge.
 
To read more articles from the same writer, click here.
 
 

User

COMMENTS

Nilesh KAMERKAR

4 years ago

When there’s a charge, ‘they’ say there’s no proof.
No proof does not mean, no corruption. It just means , , , you can’t prove it

When there’s proof, to the tune of lakhs of crores
They are unable to count beyond zero. Mother India and her dacoit sons. . .

nagesh kini

4 years ago

CAG Vinod Rai, in demanding constitutional status to CBI and CVC has sounded the right call.
All Regulators like RBI, SEBI, IRDA, TRAI ought to be delinked from ministerial pressures and appointed by a Parliamentary panel to whom they should submit their reports.

REPLY

M G WARRIER

In Reply to nagesh kini 4 years ago

I agree But for any pragmatic move political will is a pre-requisite This is conspicuous by its absence. Political will is now lingering around survival Even today's FDI) voting in parliament sends out disturbing signals Democratic process is being hijacked

Never-ending woes of LPG consumers

It is not possible to anticipate all the unintended consequences of new LPG quota system. While it may reduce subsidy burden to some extent, consumers will continue to face enormous problems in securing their LPG supplies in the future

 
Even under the best of times, it has never been an easy task for LPG (liquefied petroleum gas) consumers to secure supplies from public sector oil company dealers. When consumers can get petrol anywhere anytime why should it be difficult to get an equally if not more important commodity like cooking fuel without much hassle?
 
The state-run oil companies have been subsidizing residential LPG ever since it was introduced as a cooking fuel. Since people were not familiar with LPG, it was found necessary to subsidize it. In the beginning the subsidy burden was manageable. Diversion of residential LPG was minimal or non-existent. However, as the difference between subsidized residential LPG and commercial LPG widened, diversion increased. At present it is more than 30% based on several studies. 
 
Currently the LPG burden to the central government has been more than Rs34,000 crore. On each LPG cylinder, the government has to dole out at least Rs468. To reduce the burden government has decided to limit the subsidized LPG to six cylinders per family per year as part of their recent big bang reforms. 
 
However, when a consumer takes delivery of LPG, he has to pay the full price and subsidy will be deposited into the bank account by the oil company. To ensure that the subsidy amount is not directed to wrong persons, the Aadhaar platform will be used. On paper this looks fine and easy. 
 
Mysore in Karnataka is one of the two districts to experiment with Aadhaar-based LPG delivery implementation on a pilot basis. According to the LPG dealers and oil company managers in Mysore, implementing quota system of six cylinders will be easy without any hassle. At this stage it is just a wild conjecture. 
 
Already some consumers who do not buy LPG for more than six months have to go through an elaborate process of registering with the dealer again. Only when the oil companies give their approval from the centralized Bengaluru head offices, their account will be unblocked to receive supply. The rationale of such a process which is an unnecessary harassment to the honest consumers is not easy to defend. 
 
If a house has a joint family or more than one family or multiple kitchens then they are eligible for a larger quota. How and who will decide this quota is not clear. Such discretion will certainly lead to bribing. Institutions like orphanages, schools with the mid-day meals, anganwadis are also eligible for additional quotas. 
 
How about those who do not have the Aadhaar number?  Will they be able to get the subsidy? Assuming some are not interested in the subsidy, can they get LPG supplies? Here again it is not clear at what price they will be able to get an LPG cylinder.
 
To put a stop to households having multiple connections from different public sector companies, an elaborate system using RR (number given by power companies) and also through the “Know Your Customer” formality was implemented. Many had to surrender the additional connections. Out of the blue, on 25th October the petroleum ministry decided to allow multiple connections and introduced one more price category called non-subsidized non-domestic exempt (NDEC ) which is about three times the subsidized residential price.  
The petroleum ministry should be congratulated for having allowed the multiple connections and to allow the consumers to buy from any company of their choice. This will certainly introduce competition among the oil companies for that segment where high price is not a deterrent. This has been one of the suggestions made by LPG dealers. 
 
Before the new policy of six cylinders, there were three prices for selling the same commodity LPG—highly subsidized residential, non-subsidized commercial and automotive. Now there are already three more new price categories announced for different consumer categories—subsidized residential consumers who will receive subsidy into their bank accounts for the first six cylinders, non-subsidized non-domestic exempt category and the third group consisting of schools, anganwadis, orphanages, etc. As different groups of consumers demand subsidized LPG, competitive politics may lead to some more price categories.  
 
As discussed above, the same commodity—LPG—is sold for six different prices. One cannot design a more perfect system to generate black money. The lowest priced LPG of around Rs29,000 per tonne is for residential consumers and highest price of Rs89,000 per tonne is for the automotive sector. Only in a society where there are honest saints, diversion of such highly subsidized commodity like cooking fuel which is in high demand can be avoided. 
 
To know more about what’s happening in this area, please click here.
 
To prevent the dealers from diverting subsidized LPG, oil companies have developed a complex system of receiving bookings only through their portals or through mobile phones. Since in the future a dealer is forced to sell LPG only at non-subsidized prices and subsidy is paid directly to the consumers, it is claimed that the dealers will not be in a position to misuse the subsidy system as in the past. We all know that even a complex computer system can be hacked. Unless the government implements a foolproof monitoring system dishonest dealers will succeed in gaming the LPG portal system. 
 
The only way out of this mind-boggling edifice of supplying LPG is to start the process of liberalizing the LPG market as recommended by several high-level committees. Instead, an even more complex system is being developed. There is another layer of complexity as a result of the Congress party chief Sonia Gandhi asking the Congress ministries to give two more cylinders at the subsidized price. As in the power sector, each political party will compete with one another to promise higher subsidy to residential LPG consumers. This will end up creating huge financial burden to states and they will not be able to pay the oil marketing companies. 
 
It is not possible to anticipate all the unintended consequences of new LPG quota system. While it may reduce subsidy burden to some extent, consumers will continue to face enormous problems in securing their LPG supplies in the future.
 

User

COMMENTS

Babubhai Vaghela

4 years ago

Why only Govt Sector has to provide Clean Fuel LPG for Household use? In Privatisation Era why not Private Sector roped in?

Raghu

4 years ago

Our UPA2 Government is in a tearing hurry to implement its decision to withdraw subsidies it was providing on LPG Cylinders without having a system in place to prevent blackmarketing.This step is going to make all the middle class Indians suffer even more to obtain a LPG refill even if they are ready to pay the market fixed price as the Dealers will exploit this artificial shortage to their benefit.The re election of this Govt.is seriously in doubt in 2014 election due to this unfriendly steps against common man.

Sadanand Vinayak Nadkarni

4 years ago

surprising that we are talking about "hardships and subsidies" for domestic users. Why subsidize at all? No-one is even talking about Solar cookers-damn cheap and easily accessible almost all year through.Even in the city of Mumbai. my daughter was forced to use Solar cooker, when she shifted to a new flat and No gas cylinders for 11 months. The food tests excellent, never charred. People will not look at alternatives unless they are forced to, by removal of all subsidies--Dr.S.V.Nadkarni

REPLY

Dayananda Kamath k

In Reply to Sadanand Vinayak Nadkarni 4 years ago

then why is delhi govt giving free gas connections and stove to bpl card holders and increasing the subsidised cylinders to 9 and sonia gandhi is shouting from roof tops at evry election rally why the other party govt is not giving 9 subsidised cylinders. shila dixit e is forgetting that elections are due in delhi next year.and she is embroyled in cag cases. and is in hurry to regularise illegal colonies so that she can bribe the voters to vote for congress. and again suffer like delhi voters for selecting her 3 times on onion price commonwealth game etc

Sadanand Vinayak Nadkarni

In Reply to Dayananda Kamath k 4 years ago

Sir, you have answered your own querry.Yes. they are all rogues, not interested in the welfare of the country, but caring for their Vote banks.BUT WE SHOULD BE INTERESTED IN OUR OWN WELFARE. Solar cooking is very cheap,effortless,hyegenic and will save a huge amount of Foreign Exchange.Foerget politicians, work for yourself--Dr.S.V.Nadkarni

Vinay Isloorkar

In Reply to Sadanand Vinayak Nadkarni 4 years ago

Valid Point. I was too lazy to get into solar, but with energy prices soaring ( electricity and now gas ), hv got cracking on it.

Dr Paresh Vaidya

4 years ago

Thanks for highlighting at least SOME of the problems. Decisions from Finance Ministry came too fast and the Oil Comapnies were not ready for their part. Their portals did not have functions give what they advertised in big letters in the newspapers. ( For example my Gas dealer did not know what a Field Officer is supposed to be!!) After thousands of people cancelled second connection by 15th Sept, as required, they withdrew the dictat. Then KYC drama and long queues, which was also withdraawn afer lakhs of man-hours were lost. One wondered, Are we out of Licence Permit Raj?

They could have thought the schemes carefully and come to the public. And now comes the cash subsidy. Govt is obsessed with cash subsidy in all fields. They could have rather increased prices by 100/200 Rs but spared the common man all this hassle of counting numbers and keeping track if his cylinders are booked by someone else. If someone does, he pays 900 Rs for is last cylinder !!

Dayananda Kamath k

4 years ago

the govt is morally and legally dutybound to provide petroleum products at concessional rate. because they overcharged the people for petroleum products to create a oil pool fund, till rajiv gandhi cme to power. in his first year in office he transfered around 17000 croes to general fund from this fund balance was lost in harshad mehta scam. the fund was squandered when it was most needed and for which it was created. now these reules are being made so that they can rake in money. otherwise even though whole world knows that jindal congress mp received 366 cyluinders in a year more than 1 cylinder per day why no pronbe is done and guilty is punished. the direct credit of govt subsidy and benfits to the individuals is also a foll proof conspiracy so that cag will not be able to audit it becasuse of of huge volume of transactions involved and they can rake in their moolah. instead of preventing leakages they are opening floodgates. if you can not monitor subsidy given to 100 people how you can monitor susbsidy credited to billions. this siple logic is ignored. it is nothing but bribing the voter by crediting money to vote tham back. hope the people of india and members of parliament will understand these things. god save this country.

Pradeep R Hattangadi

4 years ago

The government seems to be intent in complicating the system for the Mango man while it becomes a fertile ground for generating black money for the politicians and their cronies.

MK Gupta

4 years ago

By this wonderful and brilliant anti-people step. the govt. has opened the black market wide open. This action is enough to give the UPA-II's message regarding its true anti-mass image, while the political class ( and the all powerful cporrupt bureaucrats) whose unethical action this novel actin is stated to have been necessitated will continue to enjoy best of both the worlds as to procure any number of gas cylinders will never be any problem-and, that too, at no cost to them! What is strange is that, the govt. should remain unmoved despite the massive protests all over.

Vinay Isloorkar

4 years ago

8.11.12

This a signal of state control on its last legs.When I was growing up, the ration shop was an essential part of the middle class milieu. When we got our phone connection, the instrument had a marigold garland for a week.The postal services have been toppled by the couriers. We did not pay toll, but there were no raods.So on and so forth. Differential pricing/ discretionary quota are all fertile breeding grounds for corruption.The masses are wising up to all these tricks. This too shall pass!

subrahmanian s h

4 years ago

I'm not for the boneless wonder that is "Aadhar Card", as my personal identity and secrecy becomes public and available for misuse and possible scams.
Beware, now for Aadhar scams.
Are all LPG users having bank accounts?
You aren't able to get a SB a/c opened in PSU Banks.
Sure the Hell will open up and involve in breeding corruptions if credit isn't there ...?
Why this hell? Sure trhe waterloo for UPA.

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