New Delhi: A total of 87 MLM companies have come under the government scanner for presumably running illegal multi-level marketing (MLM) investment schemes and seven of them are being probed for potentially serious fraudulences.
The government has actually done examination of accounts of 80 business for any sort of violation of company regulations, Corporate Affairs Minister Scahin Pilot informed Lok Sabha in a written reply.
Most of these business are found in West Bengal and Tamil Nadu and one business registered outside the country doing business online in association with some Indian business, he stated.
Pilot further said that Ministry has actually bought Serious Scams Examination Workplace (SFIO) to probe into the affairs of seven companies.
Besides, SFIO has also been ordered examination of balance – slabs of the remaining 80 business to determine whether the firms have actually breached the arrangements of the Companies Act.
Raising of funds with money circulation plan is an offence under the Prize Chits and Money Circulation Schemes (Banning) Act 1978. The Act is administered by the Department of Financial Services with the state governments.
Just recently, Finance Ministry in specialist with RBI have actually distributed model guidelines to be informed by the states.
In order to secure the interest of small capitalists, different awareness programs are being performed regularly by the ministry in coordination with the trade and sector association and expert institute such as Institute of Chartered Accountants of India (ICAI), Institute of Price Accountants of India.