<h1>India Bans Ponzi and MLM Schemes Under Prize Chits and Money Circulation Act, 1978; Investigations Underway by SFIO.</h1> The Indian government has declared Ponzi and Multi-Level Marketing (MLM) schemes as illegal under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. This Act is managed by the Ministry of Finance through State Governments. The Ministry of Finance, in consultation with the Reserve Bank of India, has circulated Model Rules for states to enforce. The Ministry of Corporate Affairs has received complaints against 86 companies, primarily in West Bengal and Tamil Nadu, and has initiated investigations into seven companies by the Serious Fraud Investigation Office (SFIO) under the Companies Act, 1956.