Andhra Pradesh High Court refuses to grant any relief to NMart //The MLM apologists conveniently ignore the latter letter by the Secretary of Consumers Affairs///NMart writ did not reach the Bench for hearing on Monday//

Andhra Pradesh High Court refuses to grant any relief to NMart

Justice K C Bhanu on Tuesday heard the arguments of NMart's counsel in the writ petition filed by NMart which is accused of indulging in money circulation schemes and criminal cases were filed against the company.

The counsel for NMart pointed out that the police have been registering more FIRs against the company when the writ petition is being heard in the High Court. However, when Justice Bhanu asked for the copy of second FIR he could not show.

The counsel requested the Bench to grant interim stay on the investigation into the case against NMart.

Justice Bhanu said that when the original plea under the writ petition was not maintainable how could an interim stay could be granted. He refused to grant any relief to the NMart.

When the NMart's counsel appealed to give more time, the hearing is adjourned and would be heard only on Dasara vacation.

In effect, the members of NMart have to wait till at least October 29 to know their fate which would anyway be sealed by then.

It is a lesson to the greedy people who want to make fast buck by way of cheating their own friends and relatives though they knew well that it is a crime.

People like Gopal are always try to make easy and quick money by playing with the greediness of people who too want easy money. Ultimately, it is Gopal who made wads of money laeaving several lakhs of people  in the lurch.

The smooth talk of such crooks is the most dangerous part in our society which would be broken with mistrust among people.

My Dear Fellow Indians and world citizens! Do not fall for the easy and quick money lure. 

There is nothing like that. These crooks are out there to grab your hard-earnings. 

NMart writ did not reach the Bench for hearing on Monday

The writ petition No. 27101/2012 filed by NMart in Andhra Pradesh High Court was listed for Monday with the number 127 in the list of petitions to be heard.

However, the writ petition did not reach the Bench at the end of day at 4. 15 p.m. The petition is listed again for Tuesday with the number 111. However, it is unlikely to reach the Bench even Tuesday also. 

If it does not reach the Bench on Wednesday also, it may be posted for next Monday.

The NMart filed the Writ of Mandamus to declare the action of the police officials in interfering with the civil disputes of the petitioner as illegal, arbitrary and appealed to the court to set aside the proceedings pending against the petitioner in FIR No. 154 of 2012 dated 23.8.2012.

The writ mentioned Corporate Frauds Watch as the fourth respondent.

In the earlier arguments, the government pleader assured the court that the police would not at all interfere in the civil disputes but would only act on the criminal activity of the company. However, Justice K C Bhanu directed the government pleader to file the affidavit.

It is most likely Justice K C Bhanu may dismiss the writ petition and that would empower the police to go ahead with the arrests of more people who joined the scheme and made others join. 

Anyway, since the Government had extended assurance that the police would not interfere in civil disputes but it is the criminal case that they would like to investigate, the police would go ahead with investigation in all the NMart malls through out the State and look for any other bank accounts to be frozen.

 warning for the last several years not to fall prey to the evil designs of these crooks and it is sad that many people are falling for the bait of easy and quick money. They are easily carried away by the tall promises of huge returns by these crooks.

It is hoped that people would realise the futility of joining such schemes for easy and quick money and save their money for their kids instead of giving away to Gopals, Amways and others. 

he 'lie' fundamental to all 'MLM/Direct Selling income opportunity'frauds

 

I think that we should again remind your free-thinking readers that it is universally accepted that lying to, or withholding key-information from, people in order to take their money, is fraud which is a form of theft. However, common-sense reveals that, by 'passing any law, but failing to enforce it, has the effect of authorizing (but not legalizing) the very crime which you are trying to prohibit.' 

Bearing the above in mind, I observe that various intellectually-castrated commentators have recently appeared on 'Corporate Frauds Watch' who, on the one hand, have freely-accepted that certain 'MLM' schemes (like 'NMart') have been frauds prohibited by Indian criminal law banning money circulation schemes. However, on the other hand, they keep insisting that these criminal 'MLM schemes' can't have been authentic 'MLM schemes,' because 'MLM' is a lawful 'Direct Selling Business Model.'

As ever, none of these latest 'MLM' propagandists can produce any independent quantifiable evidence in the form of audited accounts (particularly, income-tax payment receipts) to support the absurd fairy story entitled 'lawful MLM/Direct Selling.'  

As you know, about 15 years ago, I coined the common-sense phrase: 'premeditated, or dissimulated, closed-market swindle,' in order to deconstruct all Ponzi schemes, pyramid frauds, money circulation games, chain-letter scams, etc. The lie which is fundamental to all 'closed-market swindles' is that people can earn income lawfully by contributing their own money to participate in any alleged 'profitable commercial activity' which is secretly an economically-unviable fake, due to the fact that the alleged 'profitable commercial activity' has no significant, or sustainable, source of revenue other than its own participants.

For more than 50 years, in the USA, 'MLM/Direct Selling income opportunity' racketeers have been allowed to dissimulate closed-market swindles by offering their victims various banal, but grossly-over-priced, products, and/or services, in exchange for unlawful payments, on the pretext that 'MLM' products and/or services, can then be regularly re-sold for a profit in significant quantities. However, since no gang of 'MLM' racketeers has ever proved that 'MLM'wampum has actually been regularly re-sold directly to the general public for profit in significant quantities, 'MLM' participants have, in fact, been peddled infinite shares of their own finite money.

In the final analysis, other than their ephemeral external presentations, internally there is no real difference between all closed-market swindles; for any alleged 'opportunity to make money,' wherein (when challenged, and/or rigorously investigated) the promoters are unable to provide independent quantifiable evidence to prove that their alleged 'profitable commercial activity' has had any significant, and sustainable, source of revenue other than its own participants, is self-evidently a dissimulated closed-market swindle. 

David Brear   (copyright 2012) 

Rajahmundry-based Gemini Techno private limited started selling various products under the business model of direct selling a few years back including products like idli stand and other kitchenware material. According to the business model, a person who wants to become a distributor of Gemini Techno has to pay about Rs. 3,000 and he would be given some products and if he enrolls more members into the scheme he would be given a commission of Rs. 200 per membership.

Many people bite the bait and become members. After finding it very difficult to enroll more members into the scheme they started blaming their fate for joining the scheme.

The scheme ran for several years and within a short span of few years, Gemini Techno chief made about Rs. 20 crore. Police filed a criminal case against the company and like all the crooks, the Gemini Techno preferred to file a writ petition in the AP High Court  appealing it to declare its business model legal.

They started the racket once again showing the writ petition copy to the police. Though the High Court did not grant any relief, the police remained silent and did not take any action. The racket continued for a few more months.

After learning that the Gemini Techno filed the writ petition, Corporate Frauds Watch filed an implead petition in the writ petition filed in the AP High Court.

The writ petition reached the Bench in 2011 and Corporate Frauds Watch’s counsel appeared in the court. The division bench comprising Justice Goda Raghuram and Justice Ramesh Ranganathan heard the arguments of the counsel of Gemini Techno.

Counsel of Corporate Frauds Watch waited patiently for his turn to present the arguments. However, the justices kept on shooting questions one after another and the counsel of Gemini Techno faltered to answer their queries. Justice Ramesh Ranganathan asked the last question that the company is selling idli stand and other kitchen appliances but what is techno in it. That was the last straw on the camel's back, and the defense argument collapsed.

The writ petition was dismissed and the police arrested all the directors of the company and confiscated the properties of the company freezing all the bank accounts of Gemini Techno.

That was the end of a multilevel marketing company.

The MLM apologists conveniently ignore the latter letter by the Secretary of Consumers Affairs

Often multilevel marketing apologists quote the letter written by secretary, consumer affairs, Government of India which is blatantly misused.
They conveniently or out of ignorance never mention the follow up letter written by the same department on 23-09-2003. It is herewith being produced verbatim for the convenient of our free-thinking readers as well as ignorant or cunning members of MLM companies.

F.No. 21/(22)/IT/2001

Government of India

Ministry of Consumer Affairs, Food & Public Distribution

Dept of Consumer Affairs

Shastri Bhavan, New Delhi

Dated 23.09.2003

To

Ms. Sunitha Kalla,

 Dy Director General & Joint Secretary

Ministry of Finance, Dept of Revenue,

Central Economic Intelligence Bureau

6th Floor, B Wing Janpath Bhavan

Janpath, New Delhi

    Subject:  Applicability of the Provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978  to pyramid marketing structure/schemes - Regarding.

Madam,

      I am directed to refer to your D.O. Letter No. 301/15/2001-CEIB (Pt-II) dated 22nd September 2003 addressed to Shri Wajahat Habibullah, Secretary (Consumer Affairs) on the subject mentioned above and to say that this department was considering the issue of direct selling/network/multi-level marketing as an alternative form of marketing of goods and the entire issue was looked from that angle. However, subsequent feed back/response have showed that companies using pyramid structured marketing techniques too sell their products putting forth their schemes based on the clarification issued vide D.O. letter of even no dated 31st March, 2003 claiming that their activities also do not fall within the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. It is clarified that this Department's clarification of even number dated 31st March, 2003 does not cover pyramid structured marketing schemes. That area also does not fall within the purview of this Department.

This is issued with the approval of Secretary (CA).

Yours faithfully

sdxxxx

Alice Chacko

Under Secretary of Govt of India

Copy to : Chief Secretaries of all States and Union Territories.

The letter of Consumer Secretary was annulled by this letter on the reference of Central Economic Intelligence Bureau, Government of India. 

Still, Gopals, Mallappas and plethora of other apologists refer the same annulled letter.  It is nothing but cheating once again after stealing billions of rupees from millions of people

Gopal cheated millions showing empty papers as Supreme Court order

Just watch this video which was taken when Gopal Shekhawat was opening NMart's Bhopal branch. The video is self-explanatory. 

Gopal was very confident to tell the blatant lie to the gullible that there is a Supreme Court order allowing his company to continue his business. He asked them to show the Supreme Court order to the police when they were confronted to arrest them under money circulation scheme enactment. But he never handed over the copy of it to anyone. Nor he could produce it to the Andhra Pradesh police when he was arrested and about to be shifted from Mumbai. It is proved beyond reasonable doubt that Gopal is a number one cheat. So he knew from the beginning that the police would come after him and his business associates for indulging in money circulation scheme.

It is also proved beyond reasonable doubt that he lined his pocket with ill-gotten easy and quick money. Only his advocates somehow managed to obtain the bail for him and he now became the fugitive running away from the law-enforcing agencies hiding in a rat hole.

Still, his 'devotees' praise him and hope that NMart would be revived soon. They refuse to believe that NMart is gone and so is the hundreds of crores the crook Gopal has garnered from public. They also blindly believe that there would be a comeback for NMart.

My dear fellow Indians! This is the true colour of all these crooks who are out to cheat you in the name of multilevel marketing, network marketing, referral marketing, direct selling so on and so forth.

The Supreme Court has rightly said in its judgement in Kuriachan Chacko case. The organisers of such schemes   know well that it is mathematically impossible to run the schemes forever. They also know that the chain is going to break sooner than later. Still, they induce people to become members. That is why Section 420 of Indian Penal Code is applicable while filing criminal case against such crooks under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

It is a classic case to be presented to the law enforcing agencies and law makers to prove that there is nothing like infinite chain and ask them to desist from making any guidelines or regulations in favour of the multilevel marketing.

For the last several years Corporate Frauds Watch has been cautioning the public not to lose their hard-earned money to these crooks. They are overpowered by greed to earn easy and quick money. This is how the crooks have been cheating the gullible in the name of multilevel marketing.

Some of our friends who lost their money and vociferous in defending the fugitive Gopal say that they have no time even to see the video (LoL).