Legal Sanction for suo moto registration of cases against MLM companies.

Legal Sanction for suo moto registration of cases against MLM companies.

Paragraph 29 of the Kerala High Court judgment on Kuriachan Chacko, Achamma Chacko And Linu Joy w/o Joy John vs. State Of Kerala delivered on 19.7.2007 by hounarable Judge R. Basant, says:

"29. It is contended that no victim has actually come forward to complain about cheating. All the unit holders so far have been paid the amounts due to them. In these circumstances, in the absence of a specified person to complain about cheating the charge of cheating would not lie, it is contended. I find no merit in this contention. The allegation is of cheating by devising a scheme. In the initial days of the scheme all the unit holders may be richly rewarded. Any such devious scheme of deception must initially catch the imagination of the gullible. With this end in view it is possible that money will be pumped in at the initial stages to induce the gullible to purchase the idea. The mere fact that no specific individual unit holder has raised any complaint yet, even if the same were to be accepted as true, cannot in any way affect the allegation of cheating when the cheating is directed against a large section of humanity though not specifically ascertained and though none of them has come forward yet to make a specific complaint."