Moneylife Foundation urges the PM and others to completely ban MLM companies in India or bring these companies under the regulation of either RBI or SEBI. Moneylife was the first to expose the Speak Asia online survey scam on 8 October 2010
Moneylife Foundation has been writing against multi-level marketing schemes for some time now. Following the exposé by Moneylife on Speak Asia Online Pte Ltd and its multi-level marketing schemes, Moneylife Foundation has sent a representation to prime minister Dr Manmohan Singh, finance minister Pranab Mukherjee, finance secretary Sushama Nath and Reserve Bank of India (RBI) governor D Subbarao urging them to ban all MLM companies and their schemes in the country, or to bring all MLM companies under the regulation of either the RBI or the Securities and Exchange Board of India (SEBI), to stop them ensnaring gullible people.
According to Moneylife Foundation trustees, while the investor population in the country has fallen to 80 lakh, Speak Asia has managed to lure nearly 19 lakh people into its get-rich-quick scheme. The number accounts for a sizeable portion of India's investor population as well as internet users.
Speak Asia requires its members or 'panellists' to deposit Rs11,000 (though the rates vary, as we have seen in the countless posts by agents of Speak Asia on various sites) and then conduct surveys for which the company pays Rs500 per panellist per survey. A panellist gets an added commission if he recruits new members. There is no guarantee as to who will return the money if the company collapses.
It claimed to have conducted surveys for companies like ICICI Bank, Bharti Airtel, Nestle and Bata, but all these institutions have denied their association with Speak Asia. At a press conference held in Mumbai on 16th May, Speak Asia formally apologised for using the names of these companies. But it also refused to name a single client.
Singapore-based Speak Asia was previously known as Haren Technology Pte Ltd and is owned by one Ms Harinder Kaur. The Accounting and Corporate Regulatory Authority (ACRA) of Singapore has given it a non-compliant rating on the ACRA website for not submitting details of its AGM (annual general meeting), annual returns report and other documents.
Haren Technology itself has frequently changed its garb. The company doesn't have a registered address in India. Despite its claims of being the biggest online survey company in Asia, Speak Asia's reach is limited only to India and Bangladesh. It claims to be in existence since 2006, but the website was actually launched only on 21 January 2010.
Speak Asia's tall claims have been busted by Moneylife, and also exposed by The Economic Times, Star News and Aaj Tak. SpeakAsia's panellists have been arrested in Bangladesh. Lot of articles are available online on the fraudulent nature of the company.
Unlike several other countries, MLM schemes are not banned in India. Hence, schemes like City Limousine, Stockguru and GoldQuest could escape with millions. None of the financial watchdogs in India are responsible for monitoring such schemes, so there is every chance that Speak Asia and its clones like Ram Survey and FLC Online can get away after cheating millions of their savings.
Moneylife Foundation hopes that the government recognises the danger such schemes pose and bans them outright, and also put a regulator in charge to monitor such companies and their activities.
Click here to see the representation sent by Moneylife Foundation
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When our 'honest PM' and 'intellectually arrogant' FM have their hands full tackling larger 'public issues' MLMs are a flea bite - 'you pay for your greed and stew in your own juices!' they'd say.
Owner: James @ Mugu (Actual Name: Mugunthan Gnanam / Gangam) a malaysian resident now absconded, Govt. not taking any action.
Also one company called Way2Life (WealthLine), Chennai based has looted Rs. 5,000 - 10,000 Crores, and vanished,
Owner: Chithara Kumar, tamilian now believe to be residing in Canada along with his family.
I'm having just a small list of companies around 276 MLM companies which are operating in India which all has MCA, ROC registration, even ISO also, all have cheated & ran away and still companies keep on coming & keep on closing. what hell this govt. is doing i can't understand? which country we are living in? I don't think in no other country this kind of scam would have happened except india..!
Compare to all other scams even Speakasia's, other companies scams are too big; i will ask moneylife to turn your attention towards other companies also, speakasia is having consumer power which i have not seen in any other company in my life, let us see how govt. handles this company panelists. This number is too big, govt. has to do something for them. Rest of the companies in the market collects money in the name of investment & also watching advertisements & doing surveys for which you are paid they tells.. huh, until what time they'll run the show! one day they are closing & running away na, why govt. is not taking any step remains a big question??
Newspaper Report June 13, 2011
Police warns Hotels, Resorts and Convention centers against allowing money chain companies to hold meetings in their premises. If anyone found flouting the order, they will be booked under Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Bangalore:
NANO EXCEL Director Mr. Patrcik Thomas is in Jail.
He was arrested by Ulsoor Police and was remanded to Custody by the court.
CRIMINAL Complaint against MLM Company UNIPAY2U / visarev
20 investors who were duped by a Malaysian based MLM company UNIPAY2U filed criminal complaint before the City Police Commissioner, Thrissur.
According to the reports, 27 investors went to Malaysia to discuss the matter directly with the Company but they could never meet the Managing Director. However, the officials of the company assured them that they would get back their money before March 31, 2011. Since they did not receive back the money they went to their Bangalore office but could find the office "CLOSED".
First:First of all get the facts properly. SA never said they are selling surveys. The money being paid is for the opinion.
Second: The money collected is not for membership its for the subscription of E-Zine Magazine for a period of one year which is avl in every panel ID. This E-zine is the product here.
Third: Not necc every company is bad. As someone pointed out it is for the betterment of everyone these MLM companies can be brought under RBI or SEBI regulations.
Fifth: MLM is a great oppurtunity, only few can be sucessful as it requires sales and marketing skills. IN western countries MLM is most successful.
IM not here to argue....I only wanted to say that dont let oppurtunities go away....If any one wants to discuss with me plz call me @ 9982249004
LUCKNOW: The Lucknow Bench of the Allahabad High Court directed the additional solicitor general of India to obtain instructions from the Centre to frame guidelines and monitoring mechanism on the operation of Speak Asia Online Private Limited. ...
Second thing -Bakre ko ID ke pahle khila-pila kar mota-tagda kiya jate, usey kya pata ki wo ek din halal hoga. Woh koi SCAM-VScam ki complain nahi karta. Isi tarah Jab ye Scheme bhi iske satuaration point ka target achieve kar legi, us din .....baley baley ho jayega galey galey (hi mera paisa gaya, gaya). Ab aap hi sochiye ke Scam start kaise hota hei? Scam ho jane ke baad hi maloom padta hei ki woh SCAM tha.
jara jabaan sambalke bolo.
apne mana hai ki ap ko bewakoof banaya gaya. galli kyo bakte ho?
proves
duniya jukti hai jukanewalla chahiye
These companies should be banned in india.
[Supreme Court of India in KURIACHAN CHACKO AND OTHERS Versus STATE OF KERALA (2008)8 SCC 708]