Money chain fraud: DGP asked to file statement

KOCHI: The Kerala High Court on Wednesday directed the DGP to file a statement regarding the status of the investigation initiated against the multi-level marketing companies. A Division

Published: 10th November 2011 02:54 AM  |   Last Updated: 16th May 2012 03:46 PM   |  A+A-

KOCHI: The Kerala High Court on Wednesday directed the DGP to file a statement regarding the status of the investigation initiated against the multi-level marketing companies.

A Division Bench comprising Acting Chief Justice Manjula Chellur and Justice C N Ramachandran Nair issued the directive while considering a  petition challenging the recent government order.  The state had issued an order stating that genuine direct marketing should not be disturbed while investigating cases against money chain frauds. The petitioner alleged that the state passed the order  with a malafide intention to protect the culprits in money chain cases.

The petitioner further submitted that the state had issued the order nullifying the penal provisions of Price Chits and Money Circulation Schemes (Banning) Act and added that the government failed to consider the fact that money chain and network marketing companies were doing illegal business without taking any proper licence from the sales tax department.

The petitioner said that as many as 1,000 cases have been registered across the state against Amway India Enterprises, RMP Infotect Private limited, DXN and Nano Excel company in connection with money chain fraud.    Additional Advocate General K A Jaleel informed that the state is against the fraud committed by the companies.

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