Mail News Service
Imphal, Feb 16: Complaints have been received of ‘get-rich-quick’ or ‘earn-huge-return1 schemes offered by money swindlers in the recent past. The State Finance Department had issued a Public Notice on 16-05-2011 warning the people that these multilevel marking companies come under the Prize Chit and Money Circulation Scheme (Banning) Act, 1978 and, therefore, their operation and enrollment of member or participation therein is banned and provides for punishment and fine.
A representation was submitted by the representatives of Indian Direct Selling Association on behalf of some companies operating in the State against the Public Notice issued on 16-05-2011 requesting the State Government for distinguishing between the companies dealing with activities coming under the purview of Prize Chit and Money Circulation Schemes (Banning) (Manipur) Rules, 1978 and those such as direct/ Network/Multilevel Marketing dealing in the distribution of goods in order to avoid harassment and commercial losses to bona fide investors.
A Committee is constituted to distinguish the companies under the purview of Prize Chit and Money Circulation (Banning) (Manipur) Rules, 1978 and those direct selling companies. The committee will also examine the guideline 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. The following members will constitute the Committee:-
Commissioner(Finance), Govt. of Manipur-Chairman, Secretary(Law), Govt. of Manipur – Member, Director (Treasuries & Accounts), Manipur – Member, Superintendent of Police, CID(CB) – Member, Director(lnstitutional Finance), Manipur – Member Secretary.
Read more / Original news source: http://manipur-mail.com/committee-formed-to-look-into-prize-chit-ban/
