Corporate Affairs Priest Sachin Pilot today pointed out the government will remove as early as possible ambiguities in legislations focussed on tackling deceptive financial investment systems.
Pilot’s remarks come in the background of global direct selling firm Amway’s India Chairman William S Pinckney and 2 business Directors being jailed by the Kerala police over allegations of fraud.
“We (Corporate Affairs Ministry) will certainly work closely with concerned ministries and business to get rid of the vagueness in the law (related to taking on ponzi and various other fraudulent schemes) as quickly as feasible,”
Discussing the Amway issue, he said that it “is not good that such a thing happened.” Pinckney, Malhotra and Budhraja, that have actually been provided conditional bail, were seized by the Wayanad Crime Division (Economic Offences) wing from Kozhikode about 3 scams instances signed up in Wayanad district.
They were booked under the Prize Chits and Money Circulation Schemes (Banning) Act based on complaints filed by distributors in 2011.
“While steps ought to be taken to suppress deceitful firms operating suspicious financial investment schemes, firms that are deemed and following the rule should be defined,” the Minister pointed out.
“Such events (like Amway) may detrimentally affect the prospects of our nation as an appealing financial investment destination,” he noted.
Following Saradha fiasco in West Bengal, government has started a multi-pronged suppression on firms running ponzi and deceptive plans besides making efforts to shield the interest of good MLM companies.
“While we take solid steps against ponzi plans, we need to be careful not to develop a vitiating atmosphere for reputed and legislation abiding firms,” Pilot stated.