Commerce Minister Tofail Ahmed has urged people to remain alert about the multi-level marketing companies.
After failing to get licence from the ministry, they are running business on the basis of a stay order of the High Court, he said.
“They went to the High Court and filed petitions against the ministry and our decisions had been stayed. They are deceiving innocent people by doing business taking advantage of the writ petition,” he said in parliament under section 300 of the rules of procedure.
The commerce minister said that after the enactment of the Multilevel Marketing Activities (Control) Act and rules in 2013 and 2014, a total 27 MLM companies applied for licences to the registrar of joint stock companies.
“But only five companies were awarded the licences following scrutiny and field investigation,” he said.
Those five companies are MXN Modern Herbal Food Ltd, Rich Business System Ltd, Shadhin Online (Public) Ltd, World Mission 21 Ltd and Jar Electronics Ltd.
The minister also said that in March this year, four companies had appealed for licence renewal, but their appeals were not granted. The licences of the remaining companies were automatically cancelled as they did not apply for renewal.
