Rajasthan govt to enact law to tame illegal MLM companies, societies
Jaipur: The Rajasthan government will table a bill during the next assembly session to rein in on illegal MLM companies and cooperative societies which defraud people in the name of unrealistic returns on their investment or deposits. According to the bill which has been given a green signal by chief minister Ashok Gehlot, the properties of the companies and societies and their owners will be auctioned to pay the victims back.
A similar bill – Rajasthan Protection of Interest of Depositors (In Financial Establishment) - had been prepared during the previous BJP government, but it remained pending. The current Congress-led government has revised the some laws of the bill. It will be tabled in the assembly during the next session.
According to 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 IPC, sources said.
They added that the bill has got administrative clearance from the chief minister’s office. It will soon be forwarded to the legal department.
Rajasthan was lagging behind in enacting the law. Nearly 18 other states have already introduced laws to take legal action against fraudsters.
Many cases of MLM companies defrauding people of crores of rupees have come up over the past 10 years. In 2010 alone, more than 175 MLM companies were active in the state. Many of them including Gold Sukh, Priya Pariwar and RCM duped thousands of people. Their office bearers were arrested by the police when people in large numbers registered complaints.