An inter-ministerial committee formed by the government is set to meet on December 8 to deliberate on the need for an independent regulator for the Rs.7,200-crore direct selling industry.
Inter-ministerial committee meet “My Ministry appreciates the need of creating a regulatory framework for the direct selling and e-commerce sectors. We have recently formed an inter-ministerial committee. It will have its first meeting on December 8 to deliberate on the need and framework of regulations for the direct selling industry,” Minister of Food, Public Distribution and Consumer Affairs Ram Vilas Paswan said here on Thursday.Speaking at the launch of FICCI-KPMG report on the sector, the Minister said it was important to distinguish between the genuine and fraudulent players, and any regulation that was proposed should keep in mind the interest of consumers as the first priority.
The independent regulator for the industry has been a long-standing demand from the direct selling sector.
Mr Paswan said he saw a lot of weight in the arguments in favour of a regulator. “I think the demand for regulator for direct selling sector is quite relevant and legitimate. We are considering it,” he said.
Meanwhile, the report states that , the direct selling industry, with the right policy stimulus, is likely to reach Rs.64,500 crore in size by 2025 from Rs.7,200 crore at present. “The industry is adversely affected by lack of proper legal framework, which is compromising the growth of the industry. There is no systematic and standard policy on direct selling that is based on a constitutional structure,” the report states.
As a result, many authorities have booked direct selling companies for unlawful activities as under Prize Chits and Money Circulation Schemes (Banning) Act, 1978, it points out.
