Committee formed to look into 'get-rich-quick' schemes
Source: Hueiyen News Service
Imphal, February 16 2012:
Taking serious note over complaints received over 'get-rich-quick' or 'earn-huge-return' schemes offered by money swindlers, the State Finance Department has constituted a five-member Committee to distinguish the companies under the purview of Prize Chit and Money Circulation (Banning) (Manipur) Rules, 1978 and those falling under the category of direct selling companies.
The five-member Committee comprises Commissioner of Finance as Chairman, Director of Institutional Finance as Member Secretary and Secretary of Law Director of Treasuries & Accounts and Superintendent of Police, CID (Crime Branch) as Members.
Issuing a notification in this regard, Commissioner of Finance, Government of Manipur Rakesh Ranjan has conveyed that the Committee would examine the guidelines to regulate the sale of goods and services outside of retail establishments known as Direct Selling and to provide for protection of the consumers who purchase goods and services from direct sellers.
Earlier on May 16, 2011, the State Finance Department issued a Public Notice informing the people that all the multi-level marketing companies come under the Prize Chit and Money Circulation Scheme (Banning) Act, 1978, and therefore, their operation and enrolment of members or participation in such schemes is banned and liable to be punished or fined.
Subsequently, a representation was submitted by the representatives of Indian Direct Selling Association, on behalf of companies like Amway India, Oriflame, Altros, Tupperware, etc, operating in the state against the Public Notice on March 16, 2011 requesting the state government for distinguishing the companies dealing with companies dealing ith coming under the purview of Prize Chit and Money Circulation Scheme (Banning) (Manipur) Rules, 1978 and those such as direct/networking/multilevel marketing dealing in the distribution of goods in order to avoid harassment and commercial losses to bonafide investors.