Warning flags of the Modaraba fraud-a good ponzi system when you look at the Pakistan: playing with sufferer makes up top reduction

This research aimed to recognize warning flag of your own Modaraba ripoff and provides ideas on the cures away from Ponzi plans. An effective thematic studies of your own research, compiled compliment of semi-prepared interviews with eighteen shot respondents, let the latest boffins in conclusion on compound of one’s swindle. Show revealed that important warning flag of your con was excessive profits, gap capital arrangements, multifaceted, cutting-edge and you may unregistered surgery, rapid and participative rates out-of agents’ percentage, and deferred periodic winnings. Conclusions after that advise that traders and you may state-manage regulatory authorities may help about cures regarding Ponzi schemes for the due do it of its opportunities.

Notes

Modaraba try an Islamic union involving the movie director/Modarib and you can proprietor regarding financing/Rabul-Mal; where in fact the holder out-of a money spends money plus the director capitalizes their training to have powering good permissible organization (Hassan and you can Lewis 2007; Usmani 2002). Modarib and Rabul-Mal distribute profit from organization as decideded upon ration, although losings will be modified contrary to the claims out of Rabul-Mal (Usmani 2002).

Including, Fantasy Implies Internationally (Pvt) Limited, Dream in life Around the world (Pvt) Limited, Modaraba Companies, Secure It Edu (Pvt.) Minimal, M/s 3A Alliance (private) limited, Troverz Revenue (Pvt) Limited, M/s Geneva Automobile Rental Company, Domains From the Multi-level marketing (Pvt.) Limited, M/s Askari Classification Resource, XIANLE Health Facts (Pak) Co. Limited, M/s. DXN Around the world Pakistan (Private) Restricted, Aapna (Pvt) Minimal, M/s M.Letter.Meters Cycle (Private) Limited, Believe International (Pvt) Restricted, M/s UNAICO Pakistan (Pvt.) Restricted, CNI-Chelate Net Internationally Silver (Pvt) Restricted, M/s All over the world payday loans Minnesota Landmark (Pvt.) Limited, Leader Marketing Services, Gold mine Internationally (GMI), Members of the family Business Characteristics, Daoud Money Financial Restricted, Sahara Scrape Credit, Foreign-language Lottery, Fantasy Wizard Globally, Xianle and you will Aims.

“O you that have experienced, when you offer a personal debt getting a selected term, establish they down. And you can assist an excellent scribe write [it] ranging from you into the fairness. Let no scribe decline to make given that Allah keeps instructed him. So let your produce and let the individual that has got the duty influence. And assist him fear Allah, his Lord, and never get off anything from the jawhorse. If the individual that provides the obligation was regarding minimal wisdom or weakened or struggling to determine themselves, up coming help his guardian dictate in fairness. And give witness one or two witnesses away from certainly one of your own boys. And if you will find not several boys [available], next men and two females regarding the individuals who you accept due to the fact witnesses-to make sure that if a person of one’s ladies errs, then your almost every other can prompt the girl. And help maybe not the fresh witnesses reject when they’re contacted. And do not become [too] tired to enter it, whether it is large or small, for the [specified] identity. Which is significantly more only throughout the attention off Allah and you will more powerful since the proof plus planning to stop question between you, except in case it is a direct exchange that you run certainly yourselves. To have [then] there is absolutely no blame up on your unless you develop it. Or take witnesses when you finish an agreement. Let no scribe be hurt or people witness. To have if you therefore, in fact, it is [grave] disobedience inside you. And concern Allah. And Allah demonstrates to you. And Allah was Understanding of all things.” (Brand new Qur’an, 2:282).

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