I was recruited into an MLM scheme in Udaipur and lost money, can I recover it?

Detailed Legal Analysis

MLM schemes that promise returns based on recruitment rather than product sales are illegal under Rajasthan Rent Control Act 2001 and the Prize Chits and Money Circulation Schemes Banning Act. The Rajasthan High Court has held that participation in money circulation schemes does not bar recovery of invested amounts.

In Udaipur, you can file a consumer complaint for deficiency and a police complaint for fraud. The Rajasthan High Court has clarified that genuine direct selling with actual products is distinguishable from illegal MLM operations.

Under Rajasthan Rent Control Act 2001, the consumer commission can order refund of the amount paid if the scheme was fraudulent. You should preserve membership documents, payment receipts, and promotional materials as evidence.