Five MLM companies continue to cheat people using High Court stay order, Tofail says

Commerce Minister Tofail Ahmed has told Parliament a High Court stay order has allowed five multi-level marketing companies to continue cheating people out of their money although their licences are cancelled.

“The ministry, we decided, review (their licence). These people went to court, a stay order was issued. As a result, people are falling victim to deceit,” he told Parliament on Monday. 

“I am giving this statement to explain how the general people are cheated,” he said.

The minister also urged everyone to be careful about these MLM companies. 

MXN Modern Herbal Food Limited, Rich Business System Limited, Shadhin Online Public Limited, World Mission 21 Limited and Jar Electronics Limited were selected from the 27 applicants who approached the Registrar of Joint Stock Companies (RJSC) for licences. 

“Activities of four of them were later found unsatisfactory and their licences scrapped after scrutiny during review for renewal. Another was automatically cancelled as they did not ask for renewal.

He continued that those turned down by the RJSC appealed to the ministry, only to be turned down again after evaluation. 

The minister added they then moved the High Court seeking a freeze on the cancellation of licences by his ministry. 

“Now they do not have licence, the ministry is not issuing new ones. But they are using the court order to continue operations and cheat people. 

“General people are being affected. The ministry is trying to have the stay order overturned.”

Ahmed said he had faith in the High Court but raised the issue in Parliament so that the people can be careful about the MLM companies.