RMP Infotec promises income, real-estate grants and car loans for selling product kits and binary income for referrals, typical traits of MLM schemes. Now will this scheme be stopped in time?
Speak Asia, a Singapore-based multi-level marketing (MLM) company made national headlines after it duped several people by promising easy income, merely for filling surveys. Despite this, many such companies continue to flourish; targeting gullible investors as regulators seems to be cocooned in a bubble.
One such company is RMP Infotec. Its business model is typical of any MLM company. It promises huge returns on buying its product kit and becoming a distributor by introducing two more investors to buy the same kits. The company is registered in Chennai and claims income on selling product kits and promises binary income.
The product kit costs between Rs6,990 to Rs48,000. The products range from energy-savers, vacuum cleaners and microwaves—to clothes and laptops. For instance, a kit named 'RMPEnergx+SuitLenght+Bio Energiser' includes a single-phase energy saver, premium length suit and a 'nano' health card. Surprisingly, its most expensive product is rated at Rs48,000, named as 'RMP Green City'—this claims that a plot of 1,200 square feet at Kancheepuram (known for its fabulous temples) near Chennai, will be registered in your name. Further, it promises referral income of Rs48,000 after registration of the plot.
A distributor has to introduce two people directly in his first level. If any one of these two also sells one kit, then the original distributor is eligible for an incentive. The commission is calculated on a pair value (PV) binary basis. In this case, the distributor should have at least 150PV in the structure, with a minimum of 50PV on both sides. Thereafter, every package sale of a binary pair will receive 100PV (1PV=Rs10). The maximum payout per week for a distributor will be 13,000PV (130 pairs). The sales close by the midnight of every Friday. It is important to mention that there is 'trimming' applicable if necessary, to the returns. This 'trimming' obviously refers to a cap on the returns that a participant in this scheme can make.
Experts say that the company's business is nothing more than an MLM model which is unsustainable and is bound to fail. Interestingly, the 'Customer Care' icon at http://rmpinfotec.biz/Policy/policy.aspx (where the company tries to explain its business 'model'), is not working.
The company also claims to be into e-commerce, with various products sold at discounted rates. Here, each distributor is eligible for individual PV and up-line PV if the products are purchased. According to RMP, if a distributor achieves three continuous ceilings, he/she is eligible for a car loan of Rs1,00,000 as per company norms.
In fact, there are complaints against the company on consumer discussion forums on the Internet. "I have purchased an RMP Infotec product through my friend. It's (an) MLM type scheme and I have been cheated by it. I have purchased a water purifier and suit-length, etc., in 2009. But till date I just keep following up with them and nobody (from the company) reverts on the issue," reads a complaint on www.consumercomplaints.in.
Another complaint says, "I had also applied for an RMP Nagar plot in Mangao (Maharashtra). Till now, I have not got possession and a registration letter from RMP Infotec. I had tried many times to contact it regarding this issue, but RMP does not give any positive reply to me, all the time." This complainant also says that whenever he tries calling the company, he gets an answer saying that the person he has contacted is not the right person, among other issues.
It is high time such companies are made to stop their activities-before the whole issue blows up once again, like the Speak Asia affair. Moneylife has been constantly arguing that there should be an outright ban on MLM or pyramid schemes, as a number of countries have done, but the powers-that-be don't seem to be interested in taking any action.
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Some time last year I attended a meeting hosted by some people in Ahmedabad. It was termed as a recruitment meeting and there I met Ms. Sarita Sharma from Mumbai RMP who was a speaker in this meeting, the hall was full there was no place to sit and the speakers extolled the virtues of joining RMP and how their life had changed after joining RMP. After the meeting Ms. Sharma came to my house and coaxed me into joining RMP, she promised that she would help me fullfill the requirements of getting people in my downline and that I should take 2 ids worth Rs. 21000.00 which I would make up in a months time, yes I too was taken in by all the things said at the meeting and than by Ms. Sarita Sharma at my place, it being a Sunday and me not having the required cash at hand I offered to pay by cheque, she said that since the company did not accept cheque payment and since she had to return to Mumbai that evening I should borrow the money from someone, since I was not in favour of borrowing the money she said I could make out the cheque in her name which she would encash in Mumbai and pay cash to the company and that I would get my company ID and the products worth 21k in a few days. I was not very comfortable with the concept of the company and I did not think I would be able to contribute towards its growth so the next morning I called up Sarita and informed her that she should not encash the cheque and return my money as I was not interested in joining RMP anymore, she said that she had already paid the company and that I could not backout now even though during the meeting all the speakers had emphasised that the IDs were transferable unlike other programmes so I pointed it out to her but she would not hear of it. I tried talking to her for a day or two but then she stopped taking my calls so I went to my bank to ask for stop payment of the cheque but she had already encashed it. I then waited for my RMP ID which I have not received till date nor the products which she had promised me I doubt that she paid my money to RMP either I am not sure, I wrote to Mr. Vijay Shah who was the Regional Manager of RMP Infotec Mumbai but received no reply from him either. I am a widow with two sons and work hard for my living and that was my hard earned money, yes I was looking out for a get rich quick way and hence got into the RMP trap but who does not look out for such things. Please can someone help me get back my cash????????????????
Regards
Reena
do the need fully
“Honest corporate citizen” Amway and “Transparent” RMP are heavily advertising in the newspapers about their “compliance” of the new Direct Marketing Guidelines of the Government of Kerala.
The General public still doesn’t know what the guidelines are. Public is really worried as the Government seems to be hand in glove with MLM companies and the chain menace may once again engulf the state of Kerala.
The company officials met Oommen Chandy with the help of a local congress leader. They have posed for a photo and this photo is being is used to intimidate innocent persons who fell victims to the chain fraud.
(The company has become non functional after police action against chain marketing companies in Kerala)
(Mathrubhumi 24.10.2011 report)
http://www.royallife.biz/
Amway advertisement says they are law abiding corporate citizen !
They say they have complied with the Direct Selling guidelines enacted by the Government of Kerala!
What are the guidelines?
Why the Government of Kerala conceal these guidelines from the general public?
RTI is applicable to the government offices only.
here is the report
http://www.mlmnewsblog.com/2011/09/rmp-i...
It has been reliably learnt that the company named ‘PENTA WORLD INDIA’ is collecting deposits of Rs.1000/- from people. The other name of the above company is P.I. MARKETING. They are reportedly offering a commission of 150/- rupees or more for every 1000 rupees. This Kerala based company is a money chain company. Their offices in Kerala were closed by the Police. They have defrauded many innocent and gullible people in Kerala and Tamilnadu. As per their website [www.pentaworldindia.biz] they have a corporate!! Office in Navi Mumbai.
P I MARKETING PVT LIMITED / PENTA WORLD
Room No. : 1,2,3. Plot No. : 44,
Land View CHS
In front of Maratha Bhavan, Sector 15, Vashi,
Navi Mumbai
Maharashtra-400703
Tel:+91-222-7880120.
Fax: +91-222-788012
It is also learnt from reliable sources that now they are active in Nerul area. The following seems to be their address:
Address:
Suman Building (NEAR GAONDEVI MANDIR)
sector - 6, Darshan Darbar Road,
Nerul West,
Mumbai – 400706
I request all right thinking citizens of Navi Mumbai to be vigilant against money chain frauds and inform the police for taking action against them.
Read about checking whether a MLM is a genuine or fraud
Even I have written about wrong doings of a so called NGO in Bangalore, but they chose to remain silent because they know by initiating investigations and bringing the culprits they are not going gain any popularity.
But when it come companies like SAOL who are genuine and have kept their promise by paying all its panellists dot on time, they don't like that.
Their only intention is to trouble the people that is it. BLOODY HELL this is their journalism.
I will suggest you to spend your time in more productive activities and try to earn through hard work and not through fraud schemes.You seem to have a propensity to be a victim of get_rich_quick schemes.Still you have not learnt that there are no royal road to riches.You are just blaming journalists.
I am sorry to say you can write a lot of garbage without any substance.You have not yet given the name of the Bangalore NGO who defrauded you.
First of all, I am thank you for your valuable suggestion and I respectfully take it as sincere advice from a concerned fellow Citizen.
However, your assertion “royal roads to riches” is not true! Because being an NRI for last 20 years, it is not required to look at those options. Hence question of blaming genuine journalists doesn’t arise at all. But what I have commented is a true fact.
If you share your email, I can provide you the substance. Publishing on open forum would help the culprit to cover his wrong doings. Hope you understand.
I think it is all individual's perception.
What is your opinion about RMP infotec?
RMP is one of the Direct selling company which got FICCI Certification, ISO, WTC certification.
i want to inform one thing, WTC will give its certificate to those company which are legal, which are following ethical rules and which can with stand more than 100 years operation in the industry. Direct selling is one of the emerging industry across globe, in Maleshiya there is a rule from there government if a person not in employment for more than 2 months then he / she should become a part of direct selling company to earn his / her income. pls do understand in coming days / years direct selling will rule india. i know many peoples will give negative opinion on my comments. but i'm just saying fact.
My question is why you and all your gang of MLMers are hellbound to convert every soul into a salesperson? Do you know, if you recruit 2 in you downline and they recruit 2 and it goes on....then on 18th level your scheme would cover the entire population of India and at 24th level, the world. This is nothing but pure day dreaming. Wake up before its too late.