ADSEI Supports ED’s Action Against Unregulated Depository Schemes, Calls for Strict Action Against Promoters and Agents

New Delhi: The Association of Direct Selling Entities of India (ADSEI) supports the Enforcement Directorate’s (ED) recent crackdown against a gang involved in an unregulated depository scheme run by that defrauded investors with false promises of high returns. ADSEI firmly believes that such decisive action is crucial in safeguarding consumers from financial exploitation and ensuring a more transparent and secure financial ecosystem.

While the immediate crackdown is commendable, ADSEI strongly urged that action should not be limited to just the promoters of these unregulated depository schemes. The agents and top earners who knowingly participated and profited from such schemes at the expense of innocent investors should also be held accountable. These individuals were not mere participants but active enablers who lured people into these high-risk financial traps despite being fully aware of their illegitimacy.

“This is not just about one individual or one case—history has shown that as long as the top promoters of such unregulated depository schemes remain unchecked, they will continue to create and support new fraudulent ventures under different names. Strict action against them today will prevent future unregulated depository schemes from emerging. We urge ED and other regulatory authorities to extend their crackdown to every individual who knowingly misled investors and reaped undue financial gains from these schemes,” said     Mr. Jitender Dagar, Vice President, ADSEI.