We are working to curb fraudulent multi-level marketing cos: Sachin
20 March 2013 5:09 AM IST
To rein in multi-level marketing companies that are swindling investors, the Corporate Affairs as well as Consumer Affairs ministries, along with various stakeholders, are working on ways for cracking down on such entities.
'We are working with the Ministry of Consumer Affairs, and I think they have issued some draft guidelines also. But the final view is yet to be taken,' Corporate Affairs Minister Sachin Pilot said on Monday.
He was responding to a query on multi-level marketing companies.
'We had a joint meeting with the Ministry of Consumer Affairs and the concerned stakeholders. The idea is to have a mechanism where companies, which are doing something illegal, can be curbed,' he told reporters here.Pilot said his Ministry has asked all state governments to take strict action against companies that are found indulging in fraudulent schemes.
'We have written to all chief ministers in the country that state governments which are empowered to act on Chit Funds Act... that Act should be pursued and enforced,' he added.
The minister also emphasised that state governments, RBI, Sebi, Corporate Affairs Ministry and others have to work together to make sure that investors, especially small and marginal which are the most vulnerable ones, are protected.
According to Pilot, the idea is to sift between good and bad multi-level marketing companies.
'If some companies are following the law and doing things according to the rules prescribed, then we have no issues.Companies and entities which are pretending to be law abiding and yet are non-compliant, it is against those entities that we want to take action,' he said.
'We are working with the Ministry of Consumer Affairs, and I think they have issued some draft guidelines also. But the final view is yet to be taken,' Corporate Affairs Minister Sachin Pilot said on Monday.
He was responding to a query on multi-level marketing companies.
'We had a joint meeting with the Ministry of Consumer Affairs and the concerned stakeholders. The idea is to have a mechanism where companies, which are doing something illegal, can be curbed,' he told reporters here.Pilot said his Ministry has asked all state governments to take strict action against companies that are found indulging in fraudulent schemes.
'We have written to all chief ministers in the country that state governments which are empowered to act on Chit Funds Act... that Act should be pursued and enforced,' he added.
The minister also emphasised that state governments, RBI, Sebi, Corporate Affairs Ministry and others have to work together to make sure that investors, especially small and marginal which are the most vulnerable ones, are protected.
According to Pilot, the idea is to sift between good and bad multi-level marketing companies.
'If some companies are following the law and doing things according to the rules prescribed, then we have no issues.Companies and entities which are pretending to be law abiding and yet are non-compliant, it is against those entities that we want to take action,' he said.
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