Question

_act as a circulation of money
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Answer 1

Answer:

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Explanation:

Whereas, clause (c) of Section 2 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (Act No. 43 of 1978) (hereinafter referred to as `Act') defines `money circulation scheme' as any scheme by whatever name called for making of quick or easy money, or for receipt of any money or valuable things as the consideration for a promise to pay money, on any event or contingency, relative or applicable to the enrollment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions.

And Whereas, Section 3 of the said Act inter alia bans such money circulation schemes; and instances have come to light where money circulation schemes are being introduced in disguised forms under the garb of selling goods or services wherein, the promoters and the upline subscribers make quick and easy money at the expense of the interest of downline subscribers.

Now, therefore, in exercise of the powers conferred by sub-section (1) of Section 13 of the Act, the State Government, hereby, makes the following Rules in consultation with Reserve Bank of India for the purpose of carrying out the provisions of the Act, namely :-