Govt bans all pyramid money investment schemes
Source: The Sangai Express
Imphal, May 17 2011:
After hundreds of people have fallen prey, the money investment schemes which run with attractive names and promise cash gains, and which touch upon marketing goods, services, drugs and healthcare products have all been prohibited in the state.
A public notice prohibiting the schemes was issued by Commissioner (Finance), VK Dewangan yesterday and the general public was asked to avoid and not to enroll themselves in these schemes and also not to be associated with such "con companies" .
These prize chits or benefit schemes do not serve any social purpose but benefit primarily the promoters.
They have not only destroyed the economic fabric of the state and the country but also destroyed the well knit social fabric of the society.
Such schemes are prohibited under the Prize Chits and Money Circulation Schemes-Banning, (Manipur) Rules, 1978 and other relevant sections of various Acts under Section 420 of IPC (cheating), and under, Drugs and Cosmetic Acts 1940, Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954, etc.
the notification informed.
The notification covers all types of Multi-Level Marketing (MLM) schemes which falls under the "Money Circulation Scheme." It further cited judgments of the Supreme Court and various high courts against the MLM- a camouflaged illegal money circulation scheme.
The state government took up the step to prohibit the schemes after it has been brought to notice that a number of such money circulation schemes are thriving in the state.
The promoters of these schemes have been making high profile campaigns by declaring that enrollment into such schemes one would be getting back the initial paid investment and keep gaining financially by enrolling new members.
While promoting the schemes they induce influential people from the cross section of society and honour them by organizing indoor and outdoor parties/functions with a big fanfare to make the general public believe in the genuineness of the schemes, to help enrolling other members in the chain with attractive ad stylish titles to the enrolled members as "Silver, Gold, Diamond and Platinum members, so on and so forth" .
Many of these companies pay for promotional trips to Bangkok, Pattaya, Singapore and other countries in the name of conferences, meetings, etc.
Locally they also conduct meetings, conferences in big hotels.
These dubious companies do whatever possible to attract the gullible public, so that, the second set enroller keep multiplying, fascinating every onlooker to get engrossed into such fraudulent money circulation schemes.
Such a chain system which promises profit to everyone concerned finally breaks down at some stage, that is when a person fails to get his required clients or enrollers.
Ultimately, the easy prey, the middle class, who have been building castles in the air lose all their savings even at the cost of their blood relations, and their kith and kin who have also been victimized.
The educated unemployed youth are often the worst sufferers.
They not only lose their time but also their health and wealth in a wild goose chase.
Such schemes have ultimately ruined a number of families and friendships, the public notification of the Finance Commissioner has made aware.
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