Mizoram govt to be launched Direct selling company-Few questions raised

Mizoram state governament will be launched a direct selling/MLM company on July 18th 2013.Mizoram direct marketing ltd a govt of mizoram undertaking company will be launched mlm business concept and will be promote it entire India.Company will introduce fmcg&personal care products and will open stores in major cities.Company adopted generation plan to earn for distributors.



“As per 1978 money circualtion banning act section 11 says

11. Act not to apply to certain prize chits or money circulation schemes. Nothing contained in this Act shall apply to any prize chit or money circulation scheme promoted by-

(a) a State Government or any officer or authority on its behalf; or

(b) a company wholly owned by a State Government which does not carry on any business other than the conducting of a prize chit or money circulation scheme whether it is in the nature of a conventional chit or otherwise; or”

So as per sec 11 mizoram govt mlm cant be under pcmc act of 1978 says mizoram direct marketing leaders.

Several mlm/direct selling leaders are promoting the concept that pcmc act is not applicable so leaders can do this without fear” said one leader.

But few questions raised by mlm industry leaders and companies about mizo direct marketing.

*Can any state govt start direct selling company?

*What about other direct selling companies in private sector legality issue?

*If pcmc act is not applicable to mizoram direct marketing,can all states (kerala,AP) accept this?

*What is central govt opinion on mizoram direct marketing?

*Corporate affairs ministry can make any rules now for private mlm companies?

About the business

*Can mizo direct marketing will open stores all major towns or only in state capitals?

*If only in state capital how can district people can buy products?

*Will company open branch offices in each state?

*Monthly purchase is compulsory to the distributors?

All these doubts will be cleared by the mizo direct marketing company on launching and afterwards said one of mizoram direct marketing distributor.

But few industry people saying govt has to recognize mlm companies.It should not start directly mlm/direct selling company.Some people are feel it is good decision by mizoram govt.Now all states/central govt will give their opinion on direct selling which is useful to industry and other mlm/direct selling companies.But some people felt state govt mlm have to work like private companies in product delivery,Incentive payment,services.

Several people are believing that one south Indian company is promoting the mizoram concept.Their entire team are merged to mizoram concept.Due to cases facing that company now taking the advantage.

Once mizoram direct marketing launched then some key changes will be happen in the industry.

Leadnews Team

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