Real Planet Multitrade - new MLM scheme. Where is the regulator?
Despite several MLMs like Speak Asia duping numerous ‘investors’ for crores of rupees, there are no efforts by the government either to ban such ‘get-rich-quick’ schemes or to regulate it.
Even as the investigating agencies are probing multi-crore ponzi schemes and scams across India, many others continue to flourish, luring people with huge returns and other incentives.
Real Planet Multitrade is a relatively new entrant in the endless list of these MLM schemes. This has left several activists doubting the role of government in regulating such schemes.
This multi level marketing (MLM) company, registered in Mumbai, promises income on buying selling certain products. Once their products are bought, it entitles one to become a distributor and further, eligible for easy income on selling these products. It, in its vision statement claims to, “To produce millions of millionaires.”
Real Planet, has basket of products – mobile chips, anti-radiation bio energy card, solar pendant and diamond pendant that are sold for Rs500 to Rs2,000. It has several package deals combing various products and sold for Rs3,000 to Rs5,000. The company also has list of health care related products such as slimming capsules, piles capsules, aloe vera capsules and rheumatic massage oil.
Real Planet has business model similar to a typical MLM company. It promises income after the initial buyer introduces or propels new members to buy these products. The level of income increases as the number of people under the initial buyer increases.
The company has two main business plans, Samprak Planet Business Plan and Re-Purchase Business Plan. In the first plan it promises Rs250, on getting two people (1:1) enrolled in the company. This binary income is unlimited. It also promises diamond star royalty and gold star royalty income, which is given on completing 300 pairs ratio. In its re-purchase plan, the company promises 5-15% on direct income. Here, if a distributor has 3 direct pairs on both sides – left hand right hand - and if the left is earning Rs1 lakh weekly, then the distributor is entitled for 10% of their weekly earning, Rs10,000 in this case.
Interestingly on all the earning plans, it has certain caps and trimming applicable. Experts point out that the originality of these products is questionable. Considering the income that the company promises, the business is bound to collapse in long run. It could be typical case, where an MLM or ponzi schemes does pay in the start and then abscond after collecting the money.
Industry experts say that there is urgent need to regulate these schemes and companies, which are technically illegal under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
-Sucheta Dalal
