The Government of Haryana has reinforced its stance on consumer protection with the updated Direct Selling Guidelines 2025. If you are an MLM company owner or leader operating in cities like Gurugram, Faridabad, or Rohtak, staying compliant is no longer optional—it's mandatory.
Key Highlights of the New Guidelines
1. Prohibition of Pyramid Schemes
The most critical update is the strict definition of "Money Circulation Schemes". Any plan that pays commissions solely for recruitment (Head-hunting) without the sale of goods or services is now illegal.
Impact: Binary plans must have a product/service attached to every joining package.
2. Mandatory Nodal Officer
Every Direct Selling entity must appoint a Nodal Officer who is a resident of India (preferably Haryana if the registered office is there) to handle compliance and coordination with law enforcement agencies.
3. Cooling-off Period & Buyback Policy
Distributors must be given a "Cooling-off Period" (typically 30 days) during which they can cancel their agreement and receive a refund. Companies must also have a clear Buyback Policy for unsold inventory.
4. KYC and Banking Norms
Cash transactions are being discouraged. All payouts to distributors in Haryana must be made via bank transfers (NEFT/RTGS/IMPS) after deducting TDS (Transported Deduction at Source).
How to Launch a Compliant MLM Company in Haryana?
To operate legally, you need a robust software backend that handles these compliances automatically. At AlbaTech Connect, our software comes with pre-built modules for:
- Auto-TDS and GST Reporting
- KYC Document Manager (Aadhar/PAN)
- E-contract signing for distributors
- Grievance Redressal System