M.SHAMSUDEEN Vs. STATE OF KERALA

JUDGEMENT

(1.) COMMON issues arise for consideration in these applications, hence they are being disposed of by a common order.

(2.) IN each of the cases in the relevant crimes, the petitioner stands implicated as an accused for having committed offences punishable under Section 420 read with Section 34 I.P.C. and Sections 3 and 4 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

(3.) LEARNED counsel for the petitioner pointed out that the accusation that the RMP Company is involved in the money circulation scheme is misconceived. The company indulges in multi level marketing which is permitted under law and the company is carrying on its business strictly in terms of the guidelines issued by the state. Learned counsel pointed out that the scheme now run by the Company does not fall within the definition of money circulation scheme as contained in Section 2(c) of the Act. A close scrutiny of the scheme adopted by the Company will, according to the learned counsel, show that the receipt or payment of money is not contingent upon enrollment of members in the scheme. On the other hand, the amount received by the persons concerned is based on the sale of the products of the Company. Learned counsel referred to Annexure 11 produced in B.A.8541 of 2012 and pointed out that the Ministry of Industries has brought out guidelines to ensure that those persons who indulge in multi level marketing are not roped in under the guise of carrying on money chain circulation scheme. Clauses 5 and 6(1)(e) therein were referred to and it was pointed out that payment to the distributors is based on the sales and not on the basis of enrollment of members. It was also contended that even if it is assumed that the Company has indulged in money circulation scheme, the petitioner does not fall within the category of promoters and can at best be implicated for offences under Section 5 and 6 of the Act and if so, the offence committed by him is a bailable offence. The petitioner has only propagated the scheme formulated by the Company and he does not run the Company nor has he any participation in the management of the affairs of the Company.