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Haryana Government Gazette
EXTRAORDINARY
Published by Authority
© Govt. of Haryana
No. 193-2022/Ext.] CHANDIGARH, FRIDAY, OCTOBER 28, 2022 (KARTIKA 6, 1944 SAKA)
HARYANA GOVERNMENT
FINANCE DEPARTMENT
Notification
The 28th October, 2022
No. 272.— In exercise of the power conferred by Sub-section (1) read with Sub-section (2) of Section 13 of
the Prize Chits and Money Circulation Schemes (Banning) Act 1978 (Central Act 43 of 1978), the State Government
hereby makes the following rules in consultation with Reserve Bank of India for the purpose of carrying out the
provisions of the Act, namely:-
1. Short title and
commencement.
(1)
These rules may be called the Haryana Money Circulation Schemes (Banning) Rules,
2022.
(2)
They shall come into force from the date of their publication in the Official Gazette.
2. Definitions.
(1). In these rules, unless the context otherwise requires, –
(a)
‘Act’ means the Prize Chits and Money Circulation Schemes (Banning) Act,
1978 (Central Act No.43 of 1978);
(b)
‘compensation plan’ means plans whether explicitly stated or not, but put in
practice by the business entities for distribution of benefits to the subscribers;
(C)
‘downline subscriber’ means a subscriber who is at a lower level in the pyramid;
(e)
‘enrolment’ means a subscriber enrolling one or more subscribers;
(f)
‘Government’ means the Government of the State of Haryana in the
Administrative Department;
(g)
‘Investing Officer’ means an officer not below the rank of Deputy
Superintendent of Police (Crime Branch) of the concerned District;
(h)
‘Nodal Police Authority’ means a police authority not below the rank of
Inspector General of Police (Crime);
(i)
‘pyramid’ means a multi-layered network of subscribers to a scheme formed by
subscribers enrolling one or more subscribers in order to receive any benefit,
directly or indirectly, as a result of enrolment, action or performance of additional
subscribers to the scheme. The subscribers enrolling further subscriber (s) occupy
higher position and the enrolled subscriber (s) lower position, thus, with
successive enrolments, they form multi-layered network of subscribers.
HARYANA GOVT. GAZ. (EXTRA.), OCT. 28, 2022 (KRTK. 6, 1944 SAKA)
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(j)
‘promoter’ means a person or persons who conduct disguised money circulation
schemes and includes heirs, assignees etc. of the persons who promote business
entities running disguised money circulation schemes. It also includes persons
who actually control the operations of such schemes even though they may not be
on record acting as promoters of the business entities; and
(k)
‘Authority for sealing of business’ means a police officer not below the rank of
Superintendent of Police of the concerned district;
(l)
‘section’ means a section of the Act; .
(m)
‘subscriber’ means a subscriber by whatever name called to a money circulation
scheme including disguised money circulation scheme;
(n)
‘Upline Subscriber’ means subscriber who is at a higher level in the pyramid;
(o)
‘Winding up of business authority’ means the Administrative Secretary to
Government Haryana, Finance Department who shall be competent for winding
up of the business entities indulging in money circulation schemes and perform
other tasks as assigned by the State Government in order to implement the Act;
(2)
Words and expressions used in these rules but not defined herein shall have the meaning
respectively assigned to them in the Act.
3. Banning on Money
Circulation Schemes (i)
No individual or company or firm or business association, in any form, shall promote, run
or participate in money circulation scheme including a disguised money circulation scheme.
(ii) No individual or company or firm or business association, in any form, shall run a scheme
with a compensation plan in which the subscribers have to enroll one or more subscribers to
become entitled to certain benefits, directly or indirectly, as a result of enrolment, action or
performance of additional subscribers.
(iii) No individual or company or firm or business association, in any form, shall run a scheme
that induces enrolment of new members by offering benefits or commission, by whatever name
called, to upline members in the pyramid out of the action or performance like sale or purported
sale of goods or services by the downline members.
(iv) No individual or company or firm or business association, in any form, shall run a scheme
with a compensation plan which envisages receipt of deposits or entry fees or periodical
subscription and gives incentives to subscribers out of these funds for enrolment of new
subscribers.
4. Responsibilities of
Nodal Police
Authority
The Nodal Police Authority shall be responsible for coordinating with other State
Governments, the Central Government and agencies concerned under such Government and the
Reserve Bank of India and shall also be responsible for furnishing the information to the
Reserve Bank of India in the format and periodicity as decided by the State Government in
consultation with the Reserve Bank of India.
Explanation – This shall not debar the investigating agencies from interacting with other State
Governments and other agencies for the purpose of investigation.
5. Liability of the
Promoters
The promoter of money circulation scheme shall be personally liable even, if such schemes are
run by companies registered under the Companies Act, 2013 (Central Act 18 of 2013) or other
business entities carrying limited liability. 2013.
6. Responsibility of
sealing of business
authority
On a report received from the investigating officer and on being satisfied that prima facie
evidence exists that a money circulation scheme including disguised money circulation scheme
is being operated, a police officer not below the rank of Superintendent of Police may, under
intimation to the Nodal Police Authority, order for sealing of the business premises and offices
connected with such schemes, suspend operations of the bank accounts connected with such
schemes and take such other action as is required for closure of business operations pertaining
to such schemes.
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HARYANA GOVT. GAZ. (EXTRA.), OCT. 28, 2022 (KRTK. 6, 1944 SAKA)
7. Responsibility of
winding up of
business authority
On conclusion of the investigation, if adequate evidence exists that a money circulation scheme
is being run by a company or firm or business association in any form, the Investigating
Officer, apart from prosecuting the case under the Prize Chit and Money Circulation Schemes
(Banning) Act, 1978 (Central Act 43 of 1978), shall forward a report giving details of the
evidence collected during the investigation through the Superintendent of Police concerned to
the Competent Authority, under intimation to the Nodal Police Authority, to take action for
winding up such businesses. In the case of companies and other business entities where such a
power is vested in the Central Government, the Competent Authority shall forward a report
with its recommendations to the concerned Ministry in the Central Government for initiating
action for winding up of the company.
ANURAG RASTOGI,
Additional Chief Secretary to Government Haryana,
Finance Department.
9946—C.S.—H.G.P., Pkl.