IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE R.BASANT & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN FRIDAY, THE 1ST JULY 2011 / 10TH ASHADHA 1933 WP(C).No. 16944 of 2011(P) ----------------------------------------- PETITIONER(S): ------------------------ N.R.GIRISH, AGED 42,S/O.RAMAKRISHNAN, MANAGING DIRECTOR,UDAYAM MANPOWER & MARKETING SOLUTIONS (P) LTD.,212,NEELIYATH,UDAYAMPEROOR, KOCHI 682 307. BY ADV. SRI.C.P.UDAYABHANU RESPONDENT(S): ---------------------------- 1. STATE OF KERALA,REPRESENTED BY ITS SECRETARY TO GOVERNMENT,HOME DEPARTMENT,THIRUVANANTHAPURAM. 2. DIRECTOR GENERAL OF POLICE, POLICE HEAD QUARTERS,THIRUVANANTHAPURAM. 3. COMMISSIONER OF POLICE,KOCHI CITY, ERNAKULAM. R1 TO R3 BY ADDL.ADVOCATE GENERAL SRI. K.A. JALEEL THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 01/07/2011 ALONG WITH WPC.NO.17015 OF 2011 AND WPC.NO.17385 OF 2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.16944/2011 P APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE CLARIFICATION LETTER ISSUED BY CENTRAL GOVERNMENT. RESPONDENT'S EXHIBITS: N I L /TRUE COPY/ P.S.TO JUDGE Kss R.BASANT & K.SURENDRA MOHAN, JJ. ----------------------------------------------------------------------- W.P.(C) Nos. 16944, 17015 & 17385 of 2011 ----------------------------------------------------------------------- Dated this 1st day of July, 2011 J U D G M E N T Basant, J. The petitioners have come to this court claiming issue of direction under Article 226 to put an end to the alleged harassment meted out to them by the police. The petitioners are all person having involvement in multi-level marketing companies. According to them, the activity undertaken by them is legal, lawful and legitimate. The police are unnecessarily harassing the petitioners. The police appear to take this stand that all such multi-level marketing activity offend the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978. On that erroneous assumption, the petitioners are being put to vexation and harassment. In these circumstances appropriate directions may be issued under Article 226 to enable the petitioners to run their business without any harassment by the police. -2- W.P.(C) Nos.16944, 17015 & 17385 of 2011 2. The learned Additional Advocate General has entered appearance for the respondents. The learned Addl. Advocate General submits that the Government does not accept this stand that all multi-level marketing activity undertaken by various persons are legal, lawful and legitimate. The Government is closely watching and observing the activities of various multi-level marketing companies in the State. There is reason to assume that such companies are plundering savings of gullible members of the public and such activities amount to culpable offences of cheating under the Penal Code as also culpable offences punishable under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978. It is incorrect to say that the petitioners are being harassed by the police in any manner. The State has the duty to ensure that offences are not committed and innocent members of the public and their yearning to make quick money is not exploited by fraudulent operators. With the end in view, the multi-level marketing companies are all -3- W.P.(C) Nos.16944, 17015 & 17385 of 2011 under the scanner of the police. If, after such close observation and study it is found that any of the companies is involved in commission of culpable offences, action shall be taken against them. At the moment, no crime has been registered against any of the petitioners and no action shall be taken against them . But the learned Additional Advocate General very carefully and cautiously adds that this may not be reckoned as an acceptance that the activities of the petitioners are legal, lawful and legitimate. If necessary action will be taken against them, submits the learned Government Pleader, but such action shall be strictly in accordance with law. 3. We accept this submission of the learned Government Pleader. We do not now want to hazard an opinion as to whether the activities of the petitioners are lawful, legal and legitimate. We accept the submissions of the learned Additional Advocate General that no crime is registered against any of the petitioners as of now. If necessary, such crimes shall be registered in future, but action shall be taken only in strict compliance with law. -4- W.P.(C) Nos.16944, 17015 & 17385 of 2011 Accepting that submission, we do not find any reason to invoke our jurisdictional power under Article 226 of the Constitution. 4. These petitions are, accordingly, dismissed with the above observation. R.BASANT, JUDGE K.SURENDRA MOHAN, JUDGE rka