In the backdrop of police action against global direct selling major Amway in Kerala, the Government is looking to remove the legal ambiguities to differentiate between fraudulent ponzi schemes and genuine businesses run by "reputed and law-abiding" entities.
"We (Corporate Affairs Ministry) will work closely with concerned ministries and industries to remove the ambiguity in the law (related to tackling ponzi and other fraudulent schemes) as soon as possible," Corporate Affairs Minister Sachin Pilot told the new agency.
"While steps should be taken to crack down on fraudulent companies running dubious investment schemes, companies that are reputed and abiding by the law must be delineated," the Minister said.
Pilot's comments come against the backdrop of Amway's India Chairman William S Pinckney and two company Directors being arrested by the Kerala police earlier this week over allegations of fraud.
They were later released on bail.Commenting on the Amway incident, he said that "it is disappointing that such an eventuality came about. Such events (like Amway) might negatively affect the prospects of our country as an attractive investment destination".
"While we take strong actions against ponzi schemes, we need to be careful not to create a vitiating atmosphere for reputed and law abiding companies," Pilot said.