Legal or illegal business

kumar polu (Querist) 29 September 2014 This query is : Resolved

Dear All,

I have One Question Give Me Answer. My Friend Going To Start Online Shopping Business.

He is Provide Services Like : - Recharges / Tours & Travels / Online Shopping / Movie Ticket Booking.

He Want develop The Business Through Matrix Plan ( Affiliate Market ). It Mean Introduce To New Customer In Business.

He is Charge Rs.100.00 For Sign Up In Site. He Is Distribute To Customer Rs.65.00 By Cash, Rs.15.00 By Shopping Point & Rs.20.00 Site Maintaince Charges keeping.

His Main Business is Commission Earn From Recharges / Tours & Travels / Online Shopping / Movie Ticket Booking. ( Customers Shopping Points Redeem On Him Sites Only ).

In This Business Not Have Any Fraud & Losses of Customer.

Please Tell Me This Business is Legal Or Illegal as per Government Rules.

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Surrender K Singal (Expert) 01 October 2014
WHAT MAKES YOU DOUBT ITS LEGALITY ?

kumar polu (Querist) 01 October 2014

Govt asks states to ban multi-level marketing schemes in india.

I Have doubt above.

T. Kalaiselvan, Advocate (Expert) 05 October 2014
There is no illegality in following such businesses until there involves no fraud or cheating the customers.