Press Information Bureau

Government of India

Ministry of Corporate Affairs

05-September-2011 18:17 IST

Curb on Multi-Level Marketing Companies Question

One case of M/s. Speak-Asia Online Pte, a foreign company, has come to the notice of Ministry of Corporate Affairs. It is a multi-level marketing company. As per preliminary enquiry, it is found that the company is not registered under the Companies Act, 1956. Besides, the company has also not registered its place of business with the Registrar of Companies, Delhi as required under Section 592 of the Companies Act, 1956. However, the Ministry of Corporate Affairs has ordered investigation under Section 235 of the Companies Act, 1956 on 20.07.2011.

The Minister of State for Corporate Affairs Shri R.P.N. Singh gave this information in reply to a question in the Rajya Sabha today.

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ST/BS

Unregistered multi-level marketing operations subject to investigation under companies law following failure to register company and place of business. Preliminary inquiry found M/s. Speak-Asia Online Pte, a foreign multi-level marketing company, was not registered under the Companies Act, 1956 and had not registered its place of business with the Registrar of Companies; the Ministry of Corporate Affairs ordered an investigation under Section 235 of the Companies Act, 1956.