Ponzi Scheme and Indian Laws

15 Pages Posted: 11 Jun 2021

See all articles by Naman Jain

Naman Jain

Alliance University, School of Law

Date Written: may 2, 2021

Abstract

Ponzi scheme, multi-level marketing (MLM) programs or pyramid schemes disguised as direct selling companies are India's nightmare. The problem is huge. In fact, it's so good that the massive redemptions ordered by the Securities & Exchange Board of India (SEBI) in the case of Sahara group companies (Rs 25,000 crore plus interest) or PACL (Rs 49,100 crore) don't even start the surface of money stolen from ordinary savers. The Indian Legislature has sadly been extremely slow on the uptake and as a result many well-known ponzi schemes have been able to thrive undetected. This paper will tend to discuss the laws pertaining to the ban of Ponzi like schemes in India.

Keywords: Ponzi Scheme, SEBI, MCA, Companies Act, Prize chits and money circulation

JEL Classification: G32

Suggested Citation

jain, Naman, Ponzi Scheme and Indian Laws (may 2, 2021). Available at SSRN: https://ssrn.com/abstract=3858028 or http://dx.doi.org/10.2139/ssrn.3858028

Naman Jain (Contact Author)

Alliance University, School of Law ( email )

Bangalore
India

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
33
Abstract Views
282
PlumX Metrics