Tag Archive for MLM legislation

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Direct Selling Business Critical For India’s growth

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The Indian direct selling industry has an advocate in the Department of Industrial Policy and Promotion (DIPP) of the Ministry of Commerce. Speaking at an event about Direct Selling, Amitabh Kant, Secretary (DIPP) said that said that the Direct Selling industry is a critical part of India’s growth story as it contributes to employment, entrepreneurship, growth of MSMEs, and most importantly women empowerment, according to a press release by the Confederation of All India Traders (CAIT).
Speaking at an event about direct selling – the marketing and selling of products directly to consumers away from a fixed retail location, by industry body (Ficci), Kant said the industry had enormous growth potential.

“Direct Selling business is a part of Make in India. It should not be equated with fraudulent financial schemes and should gain government recognition

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Indian Trade Body Asks For Separate Direct Selling Laws

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Indian traders body CAIT has asked the government to formulate a separate law to regulate and monitor direct selling business in the country. 
The direct selling business in India is a source of self-employment and it should be regarded as a vertical of retail trade like e-commerce, Confederation of All India Traders (CAIT) said in a statement today. 

“In an inter-ministerial meeting convened by Ministry of Consumer Affairs recently, CAIT has sought specified legislation to regulate direct selling business in India,” it said. 

The direct sellers should be given facilitation to set up manufacturing plants, it said, adding the industry is growing at a phenomenal rate and has a huge growth potential. 

“More than 50 per cent distributors engaged in direct selling business are household women and in this way the business is promoting women empowerment,”

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Indian Parliamentary Panel Proposes Model Central Law To Curb Ponzis

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To protect people from ponzi schemes, a Parliamentary panel has suggested framing of a model central law with clear cut definitions to curb illegal money pooling activities done in the garb of direct selling. 
Moreover, it said, the model law needs to define the scope of schemes in “unambiguous and specific terms” as broad definition of ‘money circulation’ has scope for large-scale circumventing by unscrupulous operators. 
There have been rising instances of gullible investors getting cheated by fraudulent investment schemes that mostly offer high returns within a short period of time. 
The Parliamentary Standing Committee on Finance has proposed a “model central law that would be comprehensive and all-encompassing including in its ambit collective investment schemes, chit funds, direct selling schemes and such other activities which are presently permissible but are defined and regulated in

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India Considering Single Agency To Lead Ponzi Investigations

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An Indian inter-ministerial group evolving a legal framework to protect investors against frauds by ponzi operators is now working on how a single agency can take lead in investigating cases most of which are spread across states.
Central agencies like CBI are capable of taking up inter-state investigations. But they can only be handed over cases either on the request of the state governments or orders of a court.
Keeping this in mind, the inter-ministerial panel is now learnt to be focusing on how ponzi-related cases be handed over to an agency without waiting for court order or state government’s recommendation.
Various options are being considered, said sources in know of the development.
The committee is mandated to work out a new set of Standard Operating Procedures (SOP) to be followed by the government for central

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India Puts MLM Legislation On Hold

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A proposed Bill to check fraudulent multi-level marketing (MLM) schemes has been put on hold by the Indian government.
The Finance Ministry had started the process to amend Prize Chits and Money Circulation Schemes (Banning) Act, 1978, to check the menace of ponzi schemes which continue to defraud investors of their hard-earned money.
The ministry informed a recent meeting of representatives of Central revenue intelligence and law enforcement agencies that the amendment Bill “has been put on hold for the time being”, official sources said.
It was also informed that an inter-ministerial group (IMG) formed under Additional Secretary, Department of Economic Affairs, is looking into all aspects including the amendment of the Act, they said.
The Finance Ministry had earlier obtained comments from the industry on the amendments to the Act for a framework for regulation

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