'They are not abandoning their ideology. They now believe it is better to pursue their goals through the Constitution rather than from the barrel of a gun -- even if the ideology itself remains intact.'
Coming down heavily on shady operations of fraudulent multi-level marketing companies, Reserve Bank of India has alerted banks to be careful while opening accounts of the marketing/trading agencies.
The Enforcement Directorate (ED) has attached assets worth over Rs 757 crore of one of the country's most known multi-level marketing (MLM) and direct-selling companies, Amway India, as part of a money-laundering investigation. The central agency issued a statement on Monday, alleging that the company was perpetrating a "scam" by running a pyramid "fraud" in the guise of direct-selling MLM network. "The entire focus of the company is about propagating how members can become rich by becoming members. There is no focus on the products. "Products are used to masquerade this MLM pyramid fraud as a direct-selling company," the ED alleged.
Ministry has ordered a closer scrutiny into the affairs of six companies that were covered in the report.
None of India's financial regulators has any interest in proactively dealing with pyramid schemes.
Watch out for multi-level marketing schemes luring investors with unusually high returns as it might just be just a ploy to launder money.
Ponzi or MLM schemes are fraudulent investment operations.
Probe has been completed against 83.
Before participating in such a scheme, do a detailed background check of the company's credentials, especially if the promised returns are unrealistic.
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