‘Elite Forum World’ scandal highlights EOW Punjab’s failure and rampant fraud

Qadian, Punjab, India: The ongoing ‘Elite Forum World’ scam in Punjab, while yet to erode the trust of its participants, stands in stark violation of Indian law. The insights obtained from the “Ponzi Scheme and Indian Laws” paper, published by the official Social Science Research Network, provide a crucial understanding of the legal framework that governs such fraudulent schemes in India. This legal perspective is essential in comprehending the gravity of the situation and the necessary steps for intervention.

Understanding Ponzi Schemes Under Indian Law

The ‘Elite Forum World’ is a pure ponzi scheme characterized by paying returns to earlier investors with the capital from newer investors, rather than from profit earned. This model is inherently unsustainable and is considered illegal in India.

Earlier, The Eastern Herald reported on the unfolding scandal of ‘Elite Forum World,’ a Ponzi scheme. The report delved into the intricate details of this fraudulent operation, highlighting its impact on the financial integrity of the region and the potential involvement of government officials.

Key Legal Provisions Against Ponzi Schemes

1. The Companies Act, 2013: This act regulates the incorporation, regulation, and winding up of companies in India. It has provisions to tackle companies involved in fraudulent activities, including Ponzi schemes.
2. The Prize Chits and Money Circulation Schemes (Banning) Act, 1978: Specifically designed to combat Ponzi schemes, this act bans any scheme for the making of quick money or for the receipt of any money or valuable thing as consideration for a promise to pay money on any event or contingency relative or applicable to the enrollment of members into the scheme.
3. Securities and Exchange Board of India (SEBI): SEBI has the authority to regulate and prohibit fraudulent and unfair trade practices relating to the securities market. While Ponzi schemes may not always directly involve securities, SEBI’s role becomes crucial when these schemes intersect with the investment market.
4. The Economic Offences Wing (EOW): As a specialized agency, the EOW deals with high-value economic offenses, including Ponzi schemes. They play a pivotal role in investigating and prosecuting the perpetrators of such scams.

The Legal Implications for Participants and Founders

Participants in Ponzi schemes, often unaware, may find themselves in legal trouble. While the primary legal action is against the founders and operators of the scheme, such as Jaspreet Singh Sandhu and Ranjit Singh Riar in the case of ‘Elite Forum World‘, participants can also face scrutiny, especially if they actively recruit others into the scam venture.

https://youtu.be/N0NCBqxDp28?si=Q1HRqLrQHGIG86df

[The above video has been removed after we reported the scandal, Cyber Crime cell can retrieve the video]

The following video has been retrieved utilizing Open Source Intelligence.

The Historical Context of ‘Elite Forum World’ and Its Predecessor

It is crucial to remember that the scam venture ‘Elite Forum World’ is not an isolated phenomenon in Punjab. This operation was previously known as ‘P2P Network’, a scheme that had gained notoriety in India for similar fraudulent activities. The exposure of the ‘P2P Network’ by the media played a pivotal role in its downfall. As the scam came under public scrutiny, those involved in ‘P2P Network’ were compelled to cease their operations. The ‘Elite Forum World’ was renamed from ‘P2P Community World’.

This historical context is significant as it demonstrates a pattern of fraudulent financial activities evolving and re-emerging under different guises, despite previous exposures and shutdowns. The transition from P2P Network to ‘Elite Forum World’ is a testament to the persistent and adaptive nature of such scams, underscoring the ongoing challenge faced by regulatory authorities and the public in identifying and combating these deceitful ventures.

The Need for Legal and Regulatory Action

Given the clear legal stance against Ponzi schemes in India, the persistence of ‘Elite Forum World‘ highlights a gap in enforcement and public awareness. The EOW and other regulatory bodies must take swift action to dismantle these operations and prosecute those responsible. Additionally, there is an urgent need for public education campaigns to inform citizens about the legal and financial risks of participating in such scams and fraudulent schemes.

Video retrieved from P2P community Ponzi scheme now evolved and renamed as ‘Elite Forum World’

Click here to read about the legalities and regulations against such scandalous and fraudulent Ponzi schemes.

The ‘Elite Forum World‘ scandal is not just a financial fraud but a clear violation of multiple legal provisions in India.

The insights from the “Ponzi Scheme and Indian Laws” paper underscore the need for immediate legal and regulatory action, as well as heightened public awareness. As the scam continues, the role of law enforcement and regulatory bodies becomes increasingly critical in protecting the financial integrity and legal rights of the citizens of Punjab.