Fees received from MLM pyramid company
1 month ago
I provided Tax Consultancy services and Income Tax and GST opinion to a Pvt Ltd company and charged Rs. 1,00,000/- from it. They paid Rs. 90,000/- via Bank after deducting 10% TDS. Now I came to know that it is a MLM company running a Pyramid Scheme giving commissions and bonuses and all that schemes. Now I am afraid because I read somewhere that in case of a police investigation against the company they can charge all those who have received money from that company. I don't know what to do know.
A.Dear Client,
While Network Marketing and Multi-Level Marketing (MLM) are legal in India, some businesses engage in illegal MLM schemes aimed at deceiving innocent consumers. These schemes, often involving hefty membership fees and false promises of high returns, lack actual trading in services or products. The Reserve Bank of India (RBI) has cautioned investors against pyramid scheme frauds. In case of encountering MLM fraud, individuals can take legal action by sending a legal notice to the MLM Company, filing an FIR, and lodging a complaint with the Registrar of Companies. Seeking the assistance of a competent lawyer is recommended to navigate the legal complexities associated with such situations.
While Network Marketing and Multi-Level Marketing (MLM) are legal in India, some businesses engage in illegal MLM schemes aimed at deceiving innocent consumers. These schemes, often involving hefty membership fees and false promises of high returns, lack actual trading in services or products. The Reserve Bank of India (RBI) has cautioned investors against pyramid scheme frauds. In case of encountering MLM fraud, individuals can take legal action by sending a legal notice to the MLM Company, filing an FIR, and lodging a complaint with the Registrar of Companies. Seeking the assistance of a competent lawyer is recommended to navigate the legal complexities associated with such situations.
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A.Dear Client,
Both Network Marketing and Multi-Level Marketing(MLM) are legal in India except for some businesses that are classified as illegal multi-level marketing, as they are done to trap innocent consumers investing in MLM schemes, and are sold directly by investors. And there is no actual trading in services or promoters. Rather, there is just a promise that the investor will get a return. However, such promises never materialize and this leads to huge losses for the investors. Recently, The Reserve Bank Of India (RBI) Issued A Statement Cautioning Investors Against Pyramid Scheme Frauds That Promise High Returns And Run On Hefty Membership Fees. If you encounter a situation arising out of a transaction that involves multi-level marketing fraud, you can send a legal notice to the MLM Company, lodge an FIR against the fraud MLM Company and a complaint can be filed with the Registrar Of Companies and hire the service of good lawyer to navigate the matter in the right way.
Both Network Marketing and Multi-Level Marketing(MLM) are legal in India except for some businesses that are classified as illegal multi-level marketing, as they are done to trap innocent consumers investing in MLM schemes, and are sold directly by investors. And there is no actual trading in services or promoters. Rather, there is just a promise that the investor will get a return. However, such promises never materialize and this leads to huge losses for the investors. Recently, The Reserve Bank Of India (RBI) Issued A Statement Cautioning Investors Against Pyramid Scheme Frauds That Promise High Returns And Run On Hefty Membership Fees. If you encounter a situation arising out of a transaction that involves multi-level marketing fraud, you can send a legal notice to the MLM Company, lodge an FIR against the fraud MLM Company and a complaint can be filed with the Registrar Of Companies and hire the service of good lawyer to navigate the matter in the right way.
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