Money Circulation Schemes are being promoted in the name of Direct marketing (DM), Multi-Level Marketing schemes (MLM), Network marketing (NWM), Referral Marketing, Introduction Marketing, Chain Marketing etc. These schemes are nothing but camouflaged Money Circulation Schemes.
In these Schemes, at the front end, the promoters display products and services and at the back end, they are nothing but Money Circulation Schemes banned under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act 1978.To divert the attention of the public as well as the Law Enforcement Agencies and to cover up their illegal activity of Money Circulation Schemes, they display products and services.
Money Circulation Scheme means any scheme by whatever name called, where in the person has to enrol into the scheme through a already enrolled member by subscribing to the scheme by paying initial kit / member ship amount and purchasing goods and services, where in, by this, the introducer of the enrolled member will get benefits (EASY MONEY) and the company which promotes the scheme earns quick money. The enrolled member again has to enrol further members to get his amount back and also the benefits.
By this the promoter of the company, by just promoting the scheme gets benefits and the person who enrols at the initial of the scheme reaps the benefits. By enrolment into such schemes, one would be getting back the initial paid investment and keep gaining FINANCIALLY by enrolling new members. So also, the second set of enrollers keep multiplying and gain financially, fascinating every onlooker to get engrossed into such dubious money circulation schemes. Such a system of chain, to work endlessly to provide profit to everyone concerned would ultimately breakdown at some stage, resulting the financial benefit to some who joined the scheme at initial stages (they will be none than the promoters of the scheme), resulting in big financial loss to those who joined at a later stage. When a person fails to get his required clients, they blame it as one’s personal failure but not as non-viability of the scheme. The gullible people are unaware until the real picture of the money circulation schemes emerges. By the time the people realize that they were taken for a ride and cheated, it would be too late.
The promoters to promote their schemes campaign through people of high profile like film stars, Government servants, Doctors, Engineers and well known personalities of the society in their meetings, which are conducted in star hotels, Banquet halls etc., with lot of fan fare. Public should refrain from attending such meetings.
Promoters of the scheme float their companies with attractive names like “Wonder World Co.” “Miracle Co” “Japan Life India” "Amway” “Gold Quest” “Ayerveda Life” “Herb Life” “Happy Life Co” “Magic Co.” “Nice Co.” “Mega Co., “eBIZ” etc. and with attractive and stylish titles as “Silver member, Gold member, Diamond members, Platinum member", so on and so forth. They also call them as “Master Distributor, Super Distributor, Double Super Distributor etc.
They also use attractive slogans like “Earn in rupees or dollars. WORK FROM HOME ”, “ Work four hours and earn Rs., 50,000 per month ”, “ U R the boss of your business, so enrol immediately”, “ Earn up to Rs.35,000/- + Monthly by just working 2 hours at home ”, “ Do u want to earn extra by sitting at Home? Then contact us”, “ Your pathway to Heaven ”, “ Enrol with us for Healthy and Wealthy life ”, “ Do u want to lose your weight, then contact us ” etc.
These companies win over confidence of the members (victims) and maintain their image as charitable and benevolent, by offering donations to charitable, social and service oriented institutions by attracting publications, photographs of VVIP’s donating cheques. Likewise, they boost their image in a corporate style and try to gain mileage.
A single company will launch many sister companies to fool public as if to show that they are big group of companies. A single company, renamed, many a times attract people of different places, takes its chameleon stride through colourful gifts, brochures. Likewise, all innovative methods are put into action to successfully grow and make MONEY for themselves causing irreparable FINANCIAL loss to the general public and society.
These companies results in exploitation of each and every distributor. If a Superior officer or his ward is involved in MLM, the subordinates are forced to become members in this chain. Likewise if a close friend comes with a scheme, one finds it difficult to say “No” and if at all, the above get cheated, mostly they refrain from complaining to Police only to save their relationship/friendship.
If your close relative, friend, neighbour or your superior or colleague approaches you with a product / service which involves enrolment and further enrolment of members and meetings at high profile places / kitty parties then it is nothing but Money Circulation Scheme banned under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act 1978.
The appeal to the public is to not to enrol themselves into Multi Level Marketing Companies, Money Circulation Schemes, Network Marketing Companies and avoid getting cheated.
MLM schemes destroy the well knitted social fabric of our Indian society and make your house as well as your neighbourhood a MARKET.