Thus the public is once again requested not to fall prey to such Direct Marketing, Multi-level Marketing, Network Marketing, Referral Marketing, Sponsor Marketing, Chain Marketing etc. Such schemes are prohibited by the Prize Chits and Money Circulation Scheme’s (Banning) Act, 1978.
One member and they induced him to become its member. After taking membership he was initially asked to enroll further members to get more commissions. Later on he was harassed mentally in this regard. the scheme which involves enrollment of members, commission earned and also the titles given to various members depending on their enrollment.
The companies has started its business in India from middle of 1995. It deals with various consumer goods like tooth paste, soaps, cosmetics, pesticides and other house hold articles. It is claiming that it is selling goods according to ‘Direct Marketing’.
The registration of this membership is valid for one year and after that they have to renew it every year. Further the company induces members to enroll members to go to the top as leaders in the group. For eg: They claim that if a person introduces 2 members, then at the end of 9th month, he will be having 512 persons below him and 4096 persons at the end of 12th month. Once you reach 512 persons, then it is also told that one has completed 1 leg and who will earn 21% commissions.
Non-Bank Financial Companies (NBFCs):
NBFCs are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions typically are restricted from taking deposits from the public depending on the jurisdiction. Nonetheless, operations of these institutions are often still covered under a countries banking regulations.
The specific banking products that can be offered by NBFCs depends on the jurisdiction, and may include services such as loans and credit facilities, savings products, investments and money transfer services. In some jurisdictions, any company can engage in banking business, except they are not allowed to use the word 'bank' in their name. A company can only call itself a bank if is a registered as such with the nation's central bank, the Reserve Bank of India.