Karnataka govt plans law against fraudulent marketing companies: Ashoka

Karnataka Revenue Minister R Ashoka on Monday said the state government is contemplating bringing a new law to keep a strict vigil on "chain-link" marketing firms that offer lucrative offers to attract investors only to vanish with the money.

Speaking to reporters, Ashoka said Tamil Nadu has enacted a law that acts harshly on Ponzi scheme operators.

"Similarly, we also need such a law to stop these market chain-link operators. In the guise of marketing companies, they are running fraud schemes. Our state, too, has several laws and provisions to curb these activities. Somehow, these Ponzi operators are succeeding in cheating gullible investors,” Ashoka said.

He added that the government will shortly set up a special monitoring cell in the police department. “This special cell will keep a tab on all activities of chain-link marketing companies. The chain-link marketing companies offer high-interest rates to attract investors and mostly poor people fall prey,” he said, adding that the state government wants to protect these poor investors.

In response to a question, the state government is also planning to modify guidelines on compensation to those who have lost their houses during heavy rains. “It has come to our notice that a section of people is seeking compensation for their old houses that collapsed long ago. The state government will issue a circular that those who lost their homes due to rains must report within a month to officials concerned,” he explained.

Ban online game ads: BJP MLA

Former BJP minister S Suresh Kumar has urged Finance Minister Nirmala Sitharaman to ban advertising, marketing and text messages promoting online gaming companies.

In a letter, the Rajajinagar MLA stated: "I am in receipt of verbal complaints from several friends and parents of residents from my own constituency...they have been getting both text messages and unsolicited calls trying to entice/force them to play online Rummy by betting their money," he stated. He pointed to reports on people losing money in online gambling and how indebted people kill themselves.

Kumar also pointed out how there is no prohibition on advertising by online gaming companies unlike liquor and cigarettes which cannot be marketed. "Once into it, many tend to become addicts and find it difficult to come out of it," Kumar said, adding that such addiction could lead to crime.