NEW DELHI: Government has decided to publish names of fraudulent multi-level marketing firms and issue alerts to investors to not put their hard-earned money into the schemes run by these companies.
The Corporate Affairs ministry will also upload the names and details of such companies on its website explaining their modus operandi.
“The public will be informed about the menace of these firms through an advertisement campaign which will be launched soon. The ministry will take the help of print, electronic and vernacular media to inform the public about the pitfalls in putting their money in these companies,” sources privy to the development said.
A meeting of the Ministry and Serious Fraud Investigation Office (SFIO) officials in this regard last month also decided that the modus operandi of these companies, which have swindled crores of funds from innocent investors, will be exposed regularly.
The SFIO is the investigations arm of the ministry.
“The e-governance cell of the Ministry of Corporate Affairs would prepare a list of companies indulging in multi-level marketing and these names will be placed on the website. Public would be informed that they should not indulge in such activities nor get lured by the fraud advertisements of such companies,” they said.
The government has also decided to crack the whip on these companies operating in the country by blocking their websites and tracking their online transactions.
Sources said the ministry has also asked the SFIO to keep a “diligent” tab on such companies and take “strict” action against them.
-PTI
