Legal Question in Business Law in India

Re: Is MlM legal in india

no laws re mlm in india.

Re: Is MLM legal in india

Multi Level Marketing/Direct Marketing is banned under Prize Chits and Money Circulation Schemes (banning) Act, 1979.

There is one news item which may be relevant to you..

in December 2002, the then Minister of Consumer Affairs, Srinivasa Prasad, told the Lok Sabha that multi-level marketing schemes are legal. But on the same day, the then Minister of State for Finance, Anandrao Adsul, told the Lok Sabha that such schemes were in fact illegal and should be investigated. The Reserve Bank of India too has done a flip-flop on this. In 2001, it declared the MLM schemes of Japan Life illegal. But in February 2003 it changed its mind. Like millions across the world, they too fell for the sales pitch, lost time money and effort chasing an illusion. Says software professional, AVS Satyanarayana, �Finally we know this is not worth the time and money we spend but because to support our people who are really mad for it.� Agrees another member, Dr Umamasheswara Rao, �It is not a gambling because gamble is designated as gambling, prostitution is designated as a prostitution, this is shown as a business it is not a business.�

http://www.mouthshut.com/review/Quest.net-139670-1.html

Further there judgement/orders of the High Courts, which are subject to scrutiny and in depth research.

before going in such scheme, please take proper legal advice.

Regards

Re: Is MlM legal in india

I agree with my esteemed colleague Mr. Vishnu.