Manipur and Nagaland is vulnerable to fund diversions by 'Networking' Companies

Heni Ahrai *

Pix: http://www.mbaskool.com

As a matter of fact that in the North Eastern Region particularly in Manipur and Nagaland States one of the major investments made by the public are into the various schemes of 'Net-Working' Companies, which have mostly turned into defaulted companies violating the law of the Country by committing financial crime of cheating the investors and the public.

It is another form of extortion, looting and scam. The Government must come up with the enactment of special law to protect and secure the investors.

The Government and the authority must pay due attention and the appropriate action must be initiated upon such cheated companies in the interest of the investors and the public.

To book the defaulted companies a proper establishment of documents and records are required that has penetrated in the Region as to bring to the knowledge of the authorities and the public. Some basic information's may be extracted like:-

• List of such defaulted companies with their particulars.
• Total amount of money invested into such companies.
• Total No. of Investors invested into such companies and the amount of lost incurred out of the investment made into.
• The list of the companies key players like agents/franchises through whom the companies plans were introduced in the Region whereby the people has join the Net-Work.

It is very surprising that such companies' agents, franchises and the top liners of the Networking schemes who are mostly the leaders of the society, wealth to do persons, Government Officials, Professional, personally capable etc are remaining silent now, trying to hide away from the face of the investors and the public when the company (ies) have vanished with huge fund of the public.

They have preach and convince the commoners to join the network by assuring so much that the companies are the genuine and legalized corporation that will never cheat the people or run away through which the investors are been wooed or lured over to be the part of the network promising of immediate benefit out of the investment to be made into.

They must be active at this situation too as they were very active during the launching of the networking schemes and when running in full swing getting good benefit out of the down line joiners rather than remain in silent, trying to escape and finding the lame excuses when approached and inquired by the investors about the matter.

The investors has every right to get back their invested money from the companies or else from the franchises or agents as they are the authorized person directly representing the companies having equal responsibility in the deal in case the company failed to do so.

The investors instead of losing hope must take full advantage of law of the land to book the defaulting companies /agents/ franchises. Conducting of meeting, workshop, seminars and legal consultation are needed on the part of the investors and the concern public in order to come up with the strategies to book the defaulters for proceeding necessary legal formalities to sue them (defaulting companies/agents) in the Court of law.

In the context of global village where can those cheating companies and its players escape from the long hand of laws wherever they may be.

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* Heni Ahrai ( an Advocate by profession) wrote this article for Hueiyen Lanpao (English Edition) .
This article was webcasted on June 22, 2011.

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