About 87 companies have come under the government scanner for allegedly engaging in fraudulent MLM schemes
Corporate Affairs Ministry will hold a detailed review meeting this week to formulate ways to curb illegal Multi Level Marketing (MLM) investment schemes, amid rising instances of investor money being swindled through such activities.
"Some companies are known to misuse the MLM platform and I am concerned about it. I am taking a meeting this week on how we can track these companies, see if they are doing any irregularities and along with the state governments, come down heavily on them," Pilot told PTI in an interview.
"I want to have a comprehensive review within ministry to see where we stand and how far we have gone. We have had some representations in this regard and the meeting would discuss strong but educated and guarded steps needed to curb illegal MLM schemes because that is certainly a problem," he said.
About 87 companies have come under the government scanner for allegedly engaging in fraudulent MLM schemes and seven of them are being investigated for possible serious frauds.
Emphasising that there is no need for new regulations, Pilot said there needs to be certain control measures against the entities misusing MLM platform, but educating the investors is also necessary to safeguard them against false promises advertised by such companies.
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