Moneylife Foundation sends representation to PM, FM and RBI urging ban on MLM schemes
Moneylife Digital Team 18 May 2011

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 

Nagesh KiniFCA
1 decade ago
All MLM are cases of cheating plain and simple and there is no reason why they cannot be prosecuted under S.420 suo moto by the police when both the numbers and values run into millions
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.
1 decade ago
Bangalore based Unipay2U (Unigroup: Unipay2U, Visarev (Unigateway2U, Unigold2U) - Scam of Rs. 35,000 Crores approximately, might be even more than that, so surprise to see moneylife hasn't given any information regarding that company.
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??
1 decade ago
MLM Rackets cannot hold meetings in Hotels, Resorts, convention Centers

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.
Replied to govindan comment 1 decade ago


NANO EXCEL Director Mr. Patrcik Thomas is in Jail.

He was arrested by Ulsoor Police and was remanded to Custody by the court.
1 decade ago
News Report (Manorama) June 11, 2011 :

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".
Arun Singer
1 decade ago
Dear All,

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
vinay kumar
1 decade ago
Times of India - ‎May 27, 2011‎
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. ...
1 decade ago
I am unable to understand one thing that till now, company is paying everything which it promised. No One complainted towards that they did not get money or something else. Then How we can say it as a scam.
Replied to surender comment 1 decade ago
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.
nagesh kini
1 decade ago
rohan guptaji,
jara jabaan sambalke bolo.
apne mana hai ki ap ko bewakoof banaya gaya. galli kyo bakte ho?
duniya jukti hai jukanewalla chahiye
pushkar rawat
1 decade ago
companies like speakasia are frauds.They only lure the people to become get rich quick and fools them.
These companies should be banned in india.
1 decade ago
Summarising all comments, the moot question here is- If SpeakAsia is genuine company, Why they are charging 11000/- to become member. If survey is their sole object then to do survey one should be literate, english known, major age and have access to online computer. those should be main criteria and not amount of 11,000/-. Hight of stupidity of those people who become member is is that they forget they are giving commission if one make more and more member, which means more and more 11,000/- and out of those 11,000/- speakAsia is paying commision (khud ki juti kud ke sir). I suggest people to be alert and cautiost of such scheme, whose only object is cheat people once scheme has collected huge amount and then vanish. just imagine as of now if we assume 15 lac member multiply by 11,000/- per person i.e. equal to 1650 crore already collected. and lastly from where they are getting survey, which companies are appointing speakAsia to do survey, why SpeakAsia is not registered in India, what an SpeakAsia member have legal remedy, if compnaies go air...???
vinay kumar
Replied to Dkjain comment 1 decade ago
Why you are charging salary against you services/time given/higher price on goods sold from your shop/industry. OYE Bewakoof understand.
Replied to vinay kumar comment 1 decade ago
Your remark added to comments shows your ability in reading & understanding the subject matter, though as you being claimed elsewhere that you spent whole life in court in reading judgement , but do my dear friend was able to grasp ratio decidendi made in those judgemnent, otherwise, it was not expected from person of legal fraternity like you to make comment like- OYE Bewakoof . For your kind information Advocate for SpeakAsia has already discontinued his services once he came to realize SA working modus- operandi and no more fighting for his client SpeakAsia. All bank accounts of SA are already freezed. Let Wisdom prevail.
1 decade ago
Speak Asia, Nano Excel, Tycoon International, Visarev & Unipay2u – biggest scam is on its way
1 decade ago
Supreme Court says these type of companies are illegal.
[Supreme Court of India in KURIACHAN CHACKO AND OTHERS Versus STATE OF KERALA (2008)8 SCC 708]
vinay kumar
Replied to GOVINDAN comment 1 decade ago
Bhai GOVINDAN read ten times this ruling, it can go against SPEAKASIA, dear I spent my whole life in courts, i go through complete judgement.
Replied to vinay kumar comment 1 decade ago
Ha ha........ "tongue never lies"
vinay kumar
Replied to vinay kumar comment 1 decade ago
It can not go against SAOL . NOT missing in my first reply
Replied to vinay kumar comment 1 decade ago
1 decade ago
thats nice pm ji ko clean cheet dene k liye
nilay ningh
1 decade ago
do not show your views that any company can run dont work on probability theory indian media personals are full of illitrate they need talent every news that you show aur any media are just baseless do some heavy reporting not chep reporting
nilay ningh
1 decade ago
do you really do any research on anyones business model it is not mlm speakasia is a totally a revolution this model will change the way of business and not ambani and birla can earn everyone should earn infact government should try these schemes and all of the reporters in any news channel plz recruit some knowledgable person
Replied to nilay ningh comment 1 decade ago
SpeakAsia is definitely an MLM case and a classic copycat case. Maybe be Nilay Singh is a member of SpeakAsia and hence the defender. Asking government to ban MLM is of no use since all their families are involved in one MLM business or the other and there are so many in India. Let the Blind Leading the Blind continue. Ultimately, the poor must get poorer and the rich must get richer. Thats the MLM result.
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