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. (more…)
GUWAHATI: Alexei Muratov, Danis Rosaov and Andre Kilyn along with Dinesh Kotian, Rimish Balan and Nabajit Das, a local agent were arrested in Guwahati by the local police in connection with MMM India Fraud.
Local police of Guwahati booked them under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and sections 120 (B), 406, 420 of the IPC. (more…)
Liberty Reserve closed and shut down on Friday by U.S. prosecutors. The investigator charged the operators of Liberty Reserve with money laundering & helping running an unlicensed money transmitting business.
Liberty Reserve laundered over $6 billion till date from criminal activities, right from credit-card fraud, identity theft, child pornography and narcotics trafficking. (more…)
Amway’s India Chairman and CEO William S. Pinckney (right), Managing Director of Amway India, Anshu Budhraja were arrested on Monday by the The Crime Branch-Crime Investigation Department (Economic Offences Wing) along with two supervisors of the Amway company on their alleged role in facilitating financial abnormalities.
Though a local court on Tuesday granted conditional bail to Multi Level Marketing company Amway’s India Chairman and CEO William S Pinckney and two company Directors who were remanded to 14 days judicial custody.
A team of officials, led by Superintendent of Police P. A. Valsan jailed Mr. Pinckney, a UNITED STATE resident, and Amway India directors Sanjay Malhotra and Anshu Budhraja in connection with a fraud cases registered in Wayanad district.
All of them were booked under the Prize Chits and Money Circulation Schemes (Banning) Act
All the implicated had obtained anticipatory bail from the Kerala High Court in an earlier situation registered on a problem claimed by K. Vishalakshi of Kozhikode. But now they were jailed based on complaints submitted by Jaffer and Ashraf from Rippon and Hariharan from Vaduvanchal, Ambalavayal in 2011, authorities resources claimed.
They were summoned for questioning in connection with the instances and later on apprehended. Meanwhile, the business, in a news release, stated, “Amway has actually submitted all info and documents that have been asked for by the authorities officials. We are working together with the police for any type of additional examination.”.
During the investigation, the investigation officers come to know that the company was making it mandatory for distributors to purchase Amway products at high rates & this amounted to violation of guidelines in Kerala.
The police are working on leads that lakhs of rupees collected this way have been invested in the insurance business.
The Maharashtra Government is going easy on companies providing ponzi schemes to investors, senior BJP leader Kirit Somaiya has alleged. He stated the Government has actually not learned from West Bengal’s Saradha Group fraud. Companies with similar operations in the State are not being examined by the authorities, he declared.
Attending, media conference on Tuesday, Somaiya stated regardless of repeated grievances against 100 such suspicious companies, no action has been taken. More than Rs 10,000 crore of public money has been looted and till date no action has been taken from the government side, he stated.
Somaiya, who is also the President of the Investors’ Grievances Forum, stated that these ponzi business have actually deployed countless agents throughout Maharashtra for collection of cash from customers. Numerous schemes, where profit in short time though MLM and offering land at low rates, are being utilized as a ploy for bring in investors, he said.
“I have personally written and met the Economic Offences Wing (EOW) of Mumbai Authorities against these dubious business schemes. However no action has been initiated till date. It appears that the EOW is attempting to settle the complaints inside,” he affirmed.
TASK FORCE
He said an immediate bodies like SEBI, Income Tax Department, Enforcement Directorate and Mumbai Authorities must discuss on the issue to fight against such ponzi schemes and deploy a task force to study and curb such schemes.
Any business paying more than 20 per cent commission to the investors must be asked to explain its nature of business immediately.
Somaiya pointed that a business like MMM India has been looking for cash from investors, but its nature of company is unknown.
The Maharashtra Government has not taken any activity on MMM INDIA. Just recently, Andhra Pradesh authorities initiated some action on MMM INDIA through a press release, he said.
He pointed out that when it come to another company, Samruddha Jeevan Foods, against whom grievance was lodged with authorities and the cops investigating the case were caught by the Anti-Corruption Bureau for accepting bribe of Rs 65 lakh.
The Criminal Investigation Department (CID) of Andhra Pradesh on Monday cautioned individuals not to invest money or encourage anyone to invest money with scheme christened Mavrodi Mondial Moneybox explaining it as scam. The MMM scheme is advertised by a Russian entrepreneur and financier Sergey Mavrodi, who was earlier jailed by the Russian government on costs of fooling their residents of cash with suspicious monetary schemes.
The scheme operators in India appeal to individuals through e-mails, text messages and through their site to invest Rs. 5,000 per person to become a member. They claim that members of the scheme would get cash like in the multi-level marketing schemes. “People are requested not to invest money as these schemes are phony and do not give any returns,” the CID stated in a news release.
T Krishna Prasad, head of Crime Investigation Department (CID), on Monday, said, “The public are hereby warned not to get in or participate in such schemes and invest any cash as these schemes are fake and do not yield any money.”.
Though it is clearly mentioned in the MMM India site that is a helping plan where you are helping other person without any return.
MMM India has openly declared that
There are no rules. The only rule: no rules at all! Even if you follow the instructions precisely, you can still “lose”. Without any apparent reason or explanation.
Sources:
There are lot of companies offering online jobs or similar kind of jobs, these companies have defrauded the market. Now against such 16 companies the investigation is going on. This list includes the names of companies from Gujarat and some mlm companies from Gujarat have defrauded people to the the tune of 100 crore.
Many Indian states have reported cases of frauds and in some cases the complaints have also been registered and some are already in the process of investigation. The investigation process is designed with the coordination between the authorities of the states, so that they move in the right direction and complete the investigation with a given time frame. A total of 16 mlm companies were examined and the process has been initiated. Mainly such frauds were reported from Gujarat and Madhya Pradesh.
Currently there is no such law to protect people against frauds.
Names of MLM and online companies, against whom Investigations is going on.
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ABC GPR Card
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Benefits to NM Companies
Reloadable Multi-use Prepaid Card which can be used at all VISA Merchant outlets, ATMS & for Online Purchases
More convenient mode of Payment
Reduces cost & processing time of disbursement of Incentive to Members
Reduces Manpower requirements
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Opportunity to enhance the Company’s Brand using co-branded Cards
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Easy reconciliation thru online MIS
Option to hotlist the Card if lost or stolen, decreasing Company’s liability
Benefits to NM Members
Easy to use Multipurpose Prepaid Card
Immediate access to Incentive anytime, anywhere not dependant on Banks or Banking hours
Wide acceptance at all VISA Merchant outlets, ATMS & for Online Purchases
Minimum uploading of Rs 100
Daily withdrawal limit of Rs 50,000 with
More secure than Cheque / DD
No need for a Bank Account
SMS & email alerts for Card load, reload and transactions
Can self Reload thru Net banking or by depositing Cash at the nearest branch
Complimentary participation in ABC’s Rewards and other Loyalty programs enhancing the face value of the Card. ABC strives to continuously upgrade / add such programs
Robust IT & BPO Support through parent Company’s infrastructure 24 x 7 Contact Centre
View Card Balance, transaction history; change ATM PIN through Card holder Portal.
Option to hotlist the Card if lost or stolen
|
Parameters |
Prepaid Card |
Cheque |
DD |
ECS |
|
Cost |
Nominal Issuance and Reload fees |
Printing and Bundling Charges |
Printing and Bundling Charges + Bank Charges |
Charges applicable as per Bank |
|
Processing time |
Instant confirmation on load of amount |
Time Consuming task of Printing the Cheque against each Name |
DD can be prepared only by Bank and printing DD’s can take time depending on no of DD’s |
Transfer to be made against each name |
|
Member |
Instant Cash through ATM’s |
En-cashing takes 2-3 days |
En-cashing takes 1-2 days |
Transfer takes 1-2 days depending on bank |
|
Not necessary to have a Bank account |
Bank account required |
Bank account required |
Bank account required |
|
|
Loyalty Program on card usage |
N A |
N A |
N A |
|
|
NM company |
No manual work ,Bulk upload |
High amount of manual work involved |
High amount of manual work involved |
Individual transaction consumes too much time |
|
No Courier Charges |
Courier charges applicable |
Courier charges applicable |
NA |
|
|
Easy to upload Commissions , Online reconciliation reports available |
Manually reconciliation against each Cheque |
Manually reconciliation against each DD |
Have to download day to day transaction and do reconciliation |
|
|
Safety |
Amount directly loaded on Card |
Chance of misplace, tear, damage |
Chance of misplace, tear, damage |
NA |
Conclusion:
The Author agrees that the Solution provided is “Old Wine in a New Bottle” but also emphasizes that the Solution has become more Mature providing New / Additional features which hitherto where not available.
The Author can be contacted at
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