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Pyramid Multi Level Marketing in illegal in India, where the source of income is from recruiting downline and the joining fees.

I have seen a lot of such companies working: some of them are registered with the Ministry of Corporate Affairs and have a valid Company or Director Identification Number (CIN/DIN).

Legally how/where can one make a report to stop these companies, and take action against them by government?

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Multi Level Marketing is perfectly legal in India (hence the CIN/DIN registrations) unless it falls foul of one or more of the following to create, for example, an unlawful pyramid scheme.

Legally how/where can one make a report to stop these companies..?

(1) Every information relating to the commission of a cognizable offence, if given orally to an officer in charge of a police station, shall be reduced to writing by him or under his direction, and be read Over to the informant; and every such information, whether given in writing or reduced to writing as aforesaid, shall be signed by the person giving it, and the substance thereof shall be entered in a book to be kept by such officer in such form as the State Government may prescribe in this behalf.

(2) A copy of the information as recorded under sub- section (1) shall be given forthwith, free of cost, to the informant.

(3) Any person aggrieved by a refusal on the part of an officer in charge of a police station to record the information referred to in subsection (1) may send the substance of such information, in writing and by post, to the Superintendent of Police concerned who, if satisfied that such information discloses the commission of a cognizable offence, shall either investigate the case himself or direct an investigation to be made by any police officer subordinate to him, in the manner provided by this Code, and such officer shall have all the powers of an officer in charge of the police station in relation to that offence.

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  • The police don't have discretion in choosing what crimes to investigate in India? It sounds like they're legally obligated to investigate every crime that's reported to them in writing.
    – nick012000
    Oct 9 '21 at 1:51

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