- 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 the front end the promoters display products and services at the back end it is 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.
- Product is only a bait but end result is Money Circulation Scheme
- Money Circulation Scheme means any scheme by whatever name called where in the person has to enroll 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 enroll 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 enrolls at the initial of the scheme reaps the benefits.
- By enrollment into such scheme 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 or non-viability of the scheme but blame it as one’s personal failure. The gullible people are taken unaware when the real failure. The gullible people are taken unaware when 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 through high profile campaign by using film stars, Government servants, Doctors, Engineers and well known personalities of the society in their meetings which are conducted in star hotels with lot of fan fare. Public should refrain from attending such meetings.
- They give attractive names to the enrolled members depending upon their enrollment like 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,”, 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 enroll 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? The contact us” “Your pathway to Heaven” “Enroll with us for Healthy and Wealth 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 time attracts people of different places, takes its chameleon stride through colorful gifts, brochures, under case of cheating. Likewise, all innovative methods are put action to successfully grow them well and make money for themselves causing irreparable financial loss to the general public and society.
- These companies results in exploitation of personal influence of each and every distributor or his close relative. If a Superior officer or his ward involved in MLM, the subordinates are forced to become members in the chain. Likewise if a close friend comes with a scheme, one finds it difficult to say “No” and if all the above get cheated also but they refrain from complaining to Police only to save their relationship/friendship.
Tips to Avoid Fraud
- If your close relative, friend, neighbor or your superior or collogue approaches you with a product / service which involves enrollment and further enrollment 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 to not to enroll themselves into Multi Level Marketing Companies, Money Circulation Schemes, Network Marketing Companies and other such companies and such schemes and get cheated.
- MLM schemes destroy the well knitted social fabric of our Indian society and make your house as well as your neighborhood a market.
- It is an appeal seeking your co-operation with the Investigating Agencies to curb such menace and nip it in the bud before it engulfs the gullible Public.
- Jurisdiction Area of Police Stations