transactions dry up
Transactions by people who joined the controversial GoldQuest referral
marketing scheme have virtually dried up with only solitary cases
of buying of gold coins or other products being reported following
a crackdown by authorities.
has almost stopped," a Central Bank official said. "Only
a handful of people are still reported to be making payments to
GoldQuest." The Central Bank's Department of Exchange Control
has imposed hefty fines on the promoters of the scheme for foreign
has imposed fines of up to Rs 88 million on six people promoting
the scheme for violating exchange control regulations in the use
of credit cards. Most of these cases are now before the Appeal Court.
customers paid for their own and others' products through a company
website using credit cards, which are not supposed to be used for
third party payments. Customs have also seized a shipment of gold
coins imported by the local shipping agents of GoldQuest, SAR Shipping,
on the grounds that the company had undervalued the products to
avoid paying taxes. The company has gone to Appeal Court to get
the consignment released.