MLM

Rajasthan govt to pass a law against illegal MLM companies, societies

News

Cases of MLM companies and societies defrauding people are increasing day by day. People in large numbers are registering complaints from past few years. The Rajasthan government have now planned to take strict action to control such acts.

The government will table a bill during the next assembly session to tame illegal MLM companies and cooperative societies which defraud people in the name of absurd returns on their investment or deposits. Chief Minister Ashok Gehlot has given a clearance to the bill.

According to the bill, the properties of the companies and societies and their owners will be auctioned to pay the victims back.

A similar bill had been prepared in the financial department, but it remained pending. Current some laws of the bill have been revised and given the administrative clearance. It will be soon forwarded to the assembly during the next session.

As per the new provisions, special courts will be set up to ensure an expedited hearing in the cases of MLM companies and societies defrauding people. The fraudsters will also be booked under relevant sections of the IPC, sources said.

Nearly 18 other states have already introduced laws to take legal action against fraudsters.