JAIPUR : The Rajasthan high court has came down hard on multi-level marketing companies and held that fraud and cheating committed by such firms are serious offences and that accused office bearers do not deserve any leniency from the court.
The court made the observation while rejecting bail applications of two directors - Saju M Chaku and his wife Annu Johan - of one Health Square multi-level marketing company.
Rejecting the applications, Justice Mahesh Chandra Sharma observed, "History shows that poor people have remained tools at the hand of wisemen and the mulit-level marketing frauds that surfaced in recent past are a big example of it. But no such person who dupe the poor man can go scott free and needs no sympathy at the end of law."
According to the case, it was alleged that the company cheated 12,500 members and embezzled a sum of Rs 4.06 crore out of which police had been able to trace Rs 3 crore rupees that have been accounted for.
TNN Feb 11, 2012