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Rajasthan Govt Direct selling Guidelines 
                                                                        

 Rajasthan Government issued separate guide lines for Direct selling/multilevel marketing and to provide for protection of consumers.

  Guidelines issued for Direct Marketing by Rajasthan Govt 
  Jaipur: Prashashan Shahron Ke Sang' campaign will commence in the State from 21st November and will continue till December 25, 2012. The decision was taken during the State Cabinet meeting held here at Chief Minister's office on Wednesday. Various other proposals were also given approval in the meeting. The meeting was presided over by Chief Minister Shri Ashok Gehlot.

During 'Prashashan Shahron Ke Sang' campaign buildings constructed in unauthorized colonies set up before 17th June, 1999 on agriculture land will be regularised on as it is, where it is basis. If the applications could not be disposed off during the campaign for any reason till March 31, 2013, follow up camps would be organised in the office of the related Local Body.

The State Cabinet gave approval to the proposal related to amendment in various models of Affordable Housing Policy, 2009. The decision would pave way for providing more houses to the people belonging to the weaker and lower income groups. After the amendment in the policy rates of flats for EWG and LIG category will be Rs. 850 per square feet while the quota for the developers has been increased from 5 to 8 percent.

The decision has also been taken to set up a Dedicated Reserve/Corpus Fund in Rajasthan Avas Vikas and Infrastructure Ltd. with loan from HUDCO or NHB. This move of the State Government will encourage the private developers to construct more houses for these sections.

Guidelines Issued for Direct Marketing:

The State Cabinet also decided to issue guidelines to regulate the sale of goods and services outside of retail establishments or known as Direct Selling. These would be called Guidelines for Direct Marketing.

 MONAVIE Under Police Observation
 
  Kochi:Kerala state crime branch police that probes the case against multinational direct marketing company Monavie, has found that the company has collected a total of Rs 11.79 crore from different investors during its operating in Kerala in the past eight months.

The CB sources also said the distributors of the company are also likely to be named as accused in the case along with its directors. The CB sleuths are set to move to Chennai in a bid to arrest the directors.

The CB is also set to approach the Kozhikode Chief Judicial Magistrate seeking the custody of the company state distributor Sajeev Nair.

He is in judicial custody now after being arrested on Thursday night. Meanwhile, the cops continued its searches at the MonaVie office in Palarivattom and at Sajeev’s house in Maradu.

Sources in the police said that healthcare products and juices marketed through the network were exorbitantly priced, as a 750 ml fruit juice being priced at Rs.2,250, and thus luring the clients to bring in more people to earn incentives.

The accused was earlier with Amway before moving to MonaVie, which is learnt to be manufacture and distribute healthcare products through multi-level marketing.

The company’s activities have been under observation of the Crime Branch and cases were registered in Kozhikode and Palakkad for violation of the Prize Chits and Money Circulation Schemes (Banning) Act.

The Crime Branch team searched the company’s office at Palarivattom and sealed its godown, which is learnt to have had materials worth around Rs.3.5 crore. Details about the network would be learnt only after going through the computers seized from the office and tracking the banking details, police sources said.

The company has customers across the State, the police said.
New rules for MLM/Direct Selling companies by Union Govt 
  New Delhi: “Model rules” are likely to be finalized in the next two weeks to check “fraudulent MLMs”, said two government officials with knowledge of the matter. Neither wanted to be identified as the rules haven’t been formally approved yet by the government.

“Although the (Prize Chits) Act already bans such schemes, there is nothing to effectively check those that are operating online and from outside India,” said the official. “Most concerned ministries and departments have already given their in-principle approval.”

The move comes as the government has detected an increasing focus by such schemes on people based in the north-east and West Bengal as well as their being marketed online by entities outside the country, in a bid to stay off the regulatory radar, unlike, say, Speak Asia Online, which was accused of defrauding people to the tune of Rs.2,300-2,400 crore by Mumbai Police last year. Speak Asia chief executive Manoj Kumar did not respond to text messages and phone calls.

Also, the plan to set up a new central regulator for MLMs has been shelved in favour of a system that will be policed by the states. The new rules will be in the nature of legal guidelines and operate under the Prize Chits and Money Circulation Schemes (Banning) Act 1978. The idea behind the new guidelines is to ensure there is clarity in the implementation of the money circulation Act (as the Prize Chits law is also known), especially among state governments, said the second government official. The economic offences wings of state police forces are not clear about how to implement the Act, and hence the new guidelines, the second official said.

“There is a great deal of overlap in regulations both at the Centre and the state. We want these things to be made clear,” he said. “Several big companies are operating these schemes under the guise of marketing products. The new rules will effectively check that.” He didn’t elaborate. Multi-level marketing companies typically operate under a business model that compensates people not only for the product sales they generate, but also for enrolling other sellers and creating a pyramid structure. This is illegal under Indian law, officials said.

Several key government arms have been involved in the framing of these guidelines, according to one of the officials cited above. They include the ministries of corporate affairs, consumer affairs and law, the department of financial services under the finance ministry, the Securities and Exchange Board of India (Sebi) and the Central Economic Intelligence Bureau (CEIB).

Information with various law enforcement agencies suggests there are at least 18 large MLM companies in the country with an annual turnover of Rs.4,000-5,000 crore, said the first official cited above, adding that these are estimates as there is no data available with the government.

“In the course of framing these guidelines, we came across some new trends. Such companies are aggressively targeting the north-east states and West Bengal,” the first official said. “And now, these schemes are being increasingly marketed online, by people based outside India.” This was in addition to the four southern states—Andhra Pradesh, Tamil Nadu, Karnataka and Kerala—where such schemes always are active, he said. At least 552 unregistered MLM schemes are currently under Sebi’s scanner, he said.

While no data was available on the number of people registered with these schemes, a recent investigation in Madhya Pradesh showed that out of 31 MLM networks in the state, the top three had 2.1 million members.

“This data is indicative of the fact that throughout the country, millions could be enrolled as members with such schemes,” he said. Earlier this year, the Serious Fraud Investigation Office (SFIO) had recommended that the central government set up a regulatory body for MLM companies that would work in conjunction with the Enforcement Directorate and the Intelligence Bureau.

“That proposal has been shelved. We want state governments to themselves police these companies,” the second official said.
Govt scrutiny of fund raising plans 
  Corporate Affairs Ministry has strengthened its surveillance mechanism over companies raising funds from the public as also on their end-use in the wake of the Supreme Court verdict on the Sahara group.

Finding violations of regulatory norms in raising funds from the public, the Supreme Court last month directed two Sahara firms to refund about Rs 24,000 crore to the investors within three months with an annual interest of 15 per cent.

Following the apex court order, the Ministry of Corporate Affairs (MCA) has directed all Registrars of Companies (RoCs) to strengthen their surveillance activities, sources said.

As per the regulations, any fund raising by even unlisted firms from 50 or more investors is considered as a public offering and needs capital market regulator Sebi’s approval.

The MCA has already asked the RoCs to reject applications filed by unlisted companies for raising money from the public through issue of shares, debentures or other securities from 50 or more investors, as such fund-raising activities comes under the jurisdiction of Sebi.

The Ministry and the RoCs would also look into whether the funds raised by the companies are being used for stated objectives, the official added.

RoCs, under the Corporate Affairs Ministry, have powers to ensure that companies registered in their jurisdictions comply with statutory requirements under the Companies Act.
Direct Selling is alternative marketing---FICCI 
  FICCI Organized a seminar on New Growth Avenues to reach the Masses on 25th september in chennai.IDSA,FDSA association members participated in this event and express their views on direct selling.

The FICCI,FDSA,IDSA body is committed to evolve a regulatory framework for direct marketing and e-commerce businesses. The highlight of the meeting however was a call to the government to put in place a mechanism to bring all related aspects under a single governing body that would regulate and guide entrepreneurs wishing to enter the sector.

The focus of the seminar, sponsored by direct marketing giants Amway and Oriflame, was on ways to tap into the vast scope in the growing market for direct marketing.

Also discussed were social aspects of this mode of sale, like the independence it can give to women.

Attempts were also made to demystify e-commerce, and explain how it could transcend distance to bring in revenue.

Speakers at the seminar had words of caution for the entrepreneurs. “There is the producer, and there is the consumer. Everyone else is in between these two. All businesses must aim to deliver benefits to consumers and producers,” said P Murari, advisor to the FICCI president.

He added that Indian businesses usually only paid lip service to consumers, often leaving them feeling short-changed.

“There is huge potential for this sector in India. As in other countries, there are some who see ways to illegally take advantage of the direct selling model,” said Amway MD Bill Pinckney.

“That’s why we need legislation, so we can differentiate between the good marketers and the bad ones,” he added.

Labour and Employment Secretary Mohan Pyare, Director of the Commissionerate of Employment and Training Mahesan Kasirajan and veteran consumer rights activist R Desikan were among those who spoke at the seminar.
Police raided and shut down MONAVIE office in Kerala
 
  KOCHI: The police on Friday 5th october raided the main office of multinational direct marketing company Monavie Enterprises in Kerala for violating the Prize Chits and Money Circulation Schemes (Banning) Act. The police also arrested Sajiv N. Nair (44), the company’s founder distributor.

The police raided the office at Palarivattom in Ernakulam and examined the documents and computer hard discs there.Costly protein powders were also found out from the godown of the company at Kalamassery. The godown was also shut down.

Sajiv will be brought to Kozhikode Chief Judicial Magistrate Court on Saturday.Earlier, Crime Branch had registered cases against Monavie at Palakkad and Kozhikode after DGP instructed to take action against organizations working along those lines of money chain. 
Cabinet approves 49% FDI in insurance, 26% in pension sector 
  New delhi:The Union government decided to move ahead with its proposal to hike foreign investment ceiling in the insurance sector to 49 per cent from the present 26 per cent. A decision in this regard was taken by the Union Cabinet headed by Prime Minister Manmohan Singh.

With the Cabinet approving the proposal, the Insurance Laws (Amendment) Bill is likely to be taken up by Parliament for passage in the forthcoming Winter Session. The bill introduced in Rajya Sabha in December 2008 proposes to increase the foreign direct investment (FDI) limit in the insurance sector to 49 per cent.

However, the standing committee on finance in its report on the bill had rejected the proposal to hike the FDI cap in the insurance sector to 49 per cent, saying this may not have the desired effect and could expose the economy to global vulnerability.

The Insurance sector was opened up for private sector in 2000 after the enactment of the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999). This Act permitted foreign shareholding in insurance companies to the extent of 26 per cent with an aim to provide better insurance coverage and to augment the flow of long term resources for financing infrastructure.

The industry has been demanding for long to increase the FDI limit for adequate funds for expansion of the sector. IRDA chairman J Hari Narayan recently favoured up to 49 per cent foreign investment in the sector.

FDI in pension sector

The government today gave green signal to foreign investment in pension funds and said the FDI limit could go up 49 per cent in line with cap in the insurance sector. Allowing FDI forms a part of the amendments to Pension Fund Regulatory and Development Authority (PFRDA) Bill, which was approved by the Union Cabinet.

However, the standing committee on finance, headed by senior BJP leader Yashwant Sinha, had suggested FDI in pension programmes but with a cap of 26 per cent. The bill had failed to get parliamentary approval in the previous term of UPA 1 government due to strong opposition from its then allies, the Left parties.

In June 2012, the Cabinet had deferred a decision on the bill following opposition from the Trinamool Congress. The bill provides powers to the PFRDA to oversee multiple pension funds in the country and also paves way for being a full-time regulator for the sector. It also provides for establishment of a statutory authority to undertake promotional, developmental and regulatory functions in respect to pension funds. 
 Police searching for N MART CMD-Seized some assets
 
  Andhra pradesh police is searching for N MART CMD Gopal singh shekawat and Director Prathiba singh shekawat who are still in absconding. Prakasam district,Andhra pradesh police seized several cars,Two wheeler and helicopter worth Rs. 1.80 crore in mumbai.Police found N Mart collected hundres of crores from the public hence they register 420 of IPC,Section 3,4,5 prize chits & money circulation schemes banning act 1978,and AP protection of depositors act.Police searching to nab N MART CMD and Directors.

Previously Andhra Pradesh High Court rejected the plea of NMart to stay the police investigation into its business activities.The NMart has filed a writ petition in the High Court appealing to quash the proceedings of investigation into the business activities of the company.
 Now several leaders of the company thinking N MART can sustain with these problems?whether company will re open these stores?Several people thinks that now it is very difficult to run business with these problems and cases.Several leaders telling to their teams that company will open offices soon.But is it possible now to open offices and stores while their cmd and directors is in absconding?Prakasam district police will arrest some more main people in the company and continue the investigation.Police said they are finding some more assets and soon will seize those also.