RPN Singh, minister of state, MCA in written reply in Lok Sabha said that, “There is no separate activity code to identify multi level marketing (MLM) companies.” Surprisingly, such a reply from MCA comes at a time when ministry of consumer affairs is drafting guidelines for MLMs
While many multi-level marketing (MLM) companies continue to mushroom, targeting gullible people and amassing several thousand crores, the government seems to have no solution to stop them. Recently the ministry of company affairs (MCA) said that that there is no separate activity to identify MLMs and it has no information on any action taken on such companies.
RPN Singh, minister of state, MCA in written reply in Lok Sabha said that, "There is no separate activity code to identify multi level marketing (MLM) companies. Therefore, these companies cannot be separately identified from the list of companies registered under the Companies Act, 1956. Also, there are no separate guidelines for MLM companies. Hence information on action and tax collection is not available."
Mr Singh was replying to written questions on whether the government is aware that the MLM companies are prevalent in India; details and total number of such companies, if the government has proposed any guidelines for these MLM companies along with details of any action against any MLM company and the tax collected from such companies in last three years.
Surprisingly, such a reply from MCA comes at a time when ministry of consumer affairs is drafting guidelines for MLMs. Sources confirmed to Moneylife that acting on the order from the Prime Minister's office (PMO), the ministry is consulting stakeholders to formulate detailed guidelines on MLMs and for direct selling companies.
Recently, Veerappa Moily, minister of consumer affairs, had said that it has written to the ministry of home affairs stating that it has no reservation if such regulatory body, as suggested by Serious Fraud Investigation Office (SFIO), is set up within the ministry of home affairs to check the cases of frauds by MLMs as is being done of chit funds.
SFIO is a fraud investing body. Famous scams by MLMs such as SpeakAsia Online and Gold Quest International (a chit fund company) are being investigated by the SFIO. Currently, India bans MLMs and Ponzi schemes under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, which is grossly inadequate. However, considering menace of these schemes, the state of Meghalaya implemented its own Act which completely banned Ponzi and MLM schemes from the state. Rajasthan is also planning to draft its own legislation, apart from the central Act.
The Kerala government, which in the past admitted noticing frauds amounting to over Rs1,000 crore by MLMs, framed guidelines to distinguish a genuine direct selling company from a fake one. However, experts pointed out that these guidelines were grossly inadequate and misleading.
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Does the MCA reply mean that MLM are not controlled by any authority? It could have taken the trouble to approach the Ministry for Consumer Affairs where Veerappa Moily has moved to from MCA. Are they trying to protect any MLM lobby?
Sad to note that you have already passed your verdict against SpeakAsiaOnline as Scam.
You know very well that the matter is subjudice and heard by Honorable Supreme Court of India. Since, the matter is subjudice & me being law abiding citizen, I would refrain from further comments.
You are also aware that the management of SpeakAsia has acted as per the direction of the Honorable Supreme Court.
You are also aware that, this organization is not going anywhere or vanish which was the history of MLM Companies in India.
You are a Respectable team, I am following all your news because I had unconditional trust in your reporting after Madam Sucheta Dalal's exposure of Harshad Mehta scam.
You must report & that is your "Dharma", but, how can you conduct a trial in your media and without any EVIDENCE rate a PROACTIVE Company as SCAM?
Till the law of the land confirms a scam based on presented EVIDENCE by EOW/SFIO or any other INVESTIGATION agency in INDIA, SpeakAsia cannot be said as SCAM but, allegedly being investigated for its business model and operation. After a complete investigation for an year, the said authorities are yet to file an FIR based on Scam report.
I request you to provide with Evidences in your position to the Honorable Supreme Court of India, which will ensure what you are reporting, if you are not in a position of having any EVIDENCE, YOU ARE DOING GREAT INJUSTICE TO 20 LACS * 3 (PEOPLE/FAMILY) = 60 LACS and more POOR PEOPLE of India.
I challenge you to produce a single EVIDENCE to prove that its a SCAM. Its an OPEN CHALLENGE to you & your armchair journalists. If you are able to do that, I WILL APOLOGIZE AND PROSTRATE in front of you and and the respectable common man of India and am ready to accept any punishment as per the law of the land.
Otherwise ARE YOU READY TO PRESENT AND CORRECT THE FACTS & APOLOGIZE PUBLICLY?
Keep me Informed, I am always at your service as a LAW ABIDING COMMON MAN of INDIA.
Truth Alone Prevails.
Warm Regards
Vineeth A Kumar
An Ordinary Indian Citizen and a PROUD SPEAKASIAN
As an True Indian, I want my fourth pillar to be fearless, robust and not a TOOL in the hands of corporate, political, mafia lobby. My request to you was, is it correct (ethically and Legally) on your part, to paint the company as "SCAM" or "FRAUD" unless proved by highest law of the land.
I prefer a strong & ethical media, you MUST write fearlessly, provided you have concrete evidence of the said people in the management alleged to be involved in illegal activities as reported by "PAID" media and some armchair journalists.
Now, the said matter is in the purview of Honorable Supreme Court of India and if they are convinced of whatever evidence, submitted by the EOW and other investigating agencies and media (if any), Mr. Manoj and Ms Haren will follow the verdict of Apex Court as and when it demands. As of now they have exactly followed as advised by the court, mediator, Honorable Mr. Lahoti Ji on every aspect.
Yes, you are spot on 'Samazhdaronko ishaara kafi hota hai'...I can understand the interest of other media houses 'proactive' role in this entire affair, but, fail to understand the interest of Monelife Team.
People like me are conditioned by the "Law of the Land" to think with CLARITY that unless one is proved to be guilty based on evidence he/she or corporate cannot be painted as fraud or scam. Let the court prove that and I assure you I will be in the front with you in your "ETHICAL" journey to cleanse Indian Corporate Industry of corruption and fly-by-night operators. Until then, kindly refrain from writing jingoistic, so called moral and unethical reports. The Indian citizen understands the nexus of media-corporate-babus-politicians-mafia.
Regarding the number of members in SAOL 12/13 or 20 lacs or 125 getting their money back (Mr. Balamurali) time will prove what is the truth and TRUTH ONLY PREVAILS.
And my mental condition is not biased and will go as per the law applicable.
Lets wait for some time.
Kindly be here when your mindset gets a shock to tune it as unbiased.
Regards
I am not suggesting you to change your views on SAOL & having waited for an year, lets give another 15 days time (last 15 days). If God is with sincere people, get ready to celebrate soon.
It may happen tonight or in a short time - Exit, Payout & full fledged operation in India with MCA/ROC/PAN etc...but, I do not trust MCA/ROC since, they are guilty of giving approval to almost all proved fraud cases like nano excel, tycoons empire, stock guru etc. SAOL is honest enough to payback the panelists but, our respectable authorities should come forward and do the necessary to close this issue at the earliest...Guilty or Not Guilty...why are the authorities delaying in fast disposal of case? They should be Citizens friend. Don't you think there is a dirty nexus between Politicians with interest in another MLM company/Authorities/Few Media Journos...to me it seems to be a larger conspiracy to keep SAOL in the legal tangle as far as possible.
File an RTI against the involved authorities why they are not cooperating when the management is ready to do it 'PRONTO'...why they failed to file one "FIR" assuming that its a fraud, how can they? they have stripped our website, after giving NDA the clientele list was handed over long back.
Rest assured, you have taken the right step of associating with SAOL, because, SAOL is the "4th Wave" predicted by Alvin Toffler, integrating all the social media to create an unbeatable business plan...an year down the line...all those who opposed SAOL will regret for missing the bus.
“First they ignore you, then they laugh at you, then they fight you, then you win.”
Lets see what happens in the future, don't disagree with you, your reaction or response is because of the pain or torture numerous Indians are suffering due to all the frauds out there.
Just like any of you and others, I am interested to to see the LEGAL identification & segregation of Good & Bad. This is a Nobel Distribution Channel raped by the people (so called leaders) for petty gains. Yes, this is the 4th wave...
Tomorrow, if law of the land says with evidence its a fraud case...I will be with you or suppose its the other way...are you ready to drop your prejudices and be with me???
(there are many things in the universe, we are not aware of...I keep my mind open to to learn for my life)...
There is no point in rebutting a Prejudiced minds and create unnecessary war of words.
One thing I would appreciate is this entire discussion is healthy with civility.