
Frauds by Companies Running Pyramidal Schemes | 49
members then also the scheme is a violation
of the Prize Chits and Money Circulation
Schemes (Banning) Act, 1978.
OR/AND
If the scheme is so conceived that it induces
enrolment of new members to earn more
and more commission, i.e., if the ‘up line’
members in the pyramid get commission
on the business turned out by the ‘down
line’ members then also the scheme is a vio-
lation of the Prize Chits and Money Circu-
lation Schemes (Banning) Act, 1978.
Range and Magnitude of the
Problem
The money circulation schemes disguised as
schemes for sale of goods/services are so wide-
spread that it is dicult ...