Press Information Bureau

Government of India

Ministry of Corporate Affairs

December, 2012 18:30 IST

The Serious Fraud Investigation Office has undertaken investigation into the affairs of certain companies undertaking business in the ‘Multi-Level Marketing’ (MLM) mode. Giving this information in written reply to a question in the Parliament, Shri Sachin Pilot, Minister of Corporate Affairs, said that the websites of these companies were found non-operational at the commencement of investigations, which are underway. If any websites carrying of ‘MLM’ activities are found operational, suitable action will be taken as per law.

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KKP

 

Investigation into multi-level marketing operations continues; regulatory action may follow if online MLM activities are found operational. The Serious Fraud Investigation Office has initiated inquiries into companies using the multi-level marketing model to assess market conduct and legal compliance. At the start of investigations the companies' websites were non operational; investigations continue and, if MLM websites or channels are found operational and indicative of legal contraventions, enforcement action will be taken as provided by corporate and criminal law.