Regulatory authority mooted post-Bengal chit fund scam

Last Updated: Thu, May 09, 2013 14:00 hrs

New Delhi, May 9 (IANS) The Direct Selling Distributors Welfare Association (DSDWA) Thursday demanded setting up of a "regulatory authority" to protect the interests of consumers and distributors in a host of sectors.

In a statement here, DSDWA also demanded enactment of stringent laws to completely plug possibilities of scams like the one in West Bengal recurring.

It said businesses had begun to suffer massive losses following the West Bengal scam expose.

DSDWA is an apex body of seven crore all-India distributors covering sectors and products in FMCG, textiles, and health & healthcare, including wellness.

In a representation submitted by DSDWA president Surender Vats to the Prime Minister's Office, the ministries of Consumer Affairs, Law & Justice, Corporate Affairs, Finance, Commerce & Industry, the Planning Commission and RBI, it has stressed that the distributors of a host of FMCG products are being seen with suspicion by a vast pool of consumers for no fault of theirs. As a result, not only their trade has been affected very badly but their reputation has also suffered.

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