The Business Reforms Commission (BRC) has asked the Finance Minister to probe business activities of Rario, where

Key Highlights :

1. Consumer rights body has written to Finance Minister to investigate business activities of Rario where Sachin Tendulkar is a strategic investor.

2. Rario is an NFT and cryptocurrency platform, a fact which is not obvious to a visitor to their website.

3. Rario is facilitating International transactions under the Liberalized Remittance Scheme (LRS) of the Foreign Exchange Management Act (FEMA) 1999, without any limits on the transactions. This is a concern under FEMA Regulations with money going outside India without using authorized routes like LRS, which lays down the guidelines for outward remittance from India.

4. Rario is also using celebrities like prominent cricketers Tendulkar, Smriti Mandhana, Cheteswar Pujara and others to mislead and lure millions of innocent and vulnerable cricket fans to buy and sell player-cards on its platform in an unethical and illegal manner.

     The Consumer Online Foundation has written to Finance Minister Nirmala Sitharaman to investigate the business activities of company Rario and its compliance with Indian taxation laws with respect to virtual digital assets and cryptocurrency and anti-money-laundering (AML) laws.

     Bejon Kumar Mishra, Managing Trustee, Consumer Online Foundation said in the letter to Sitharaman that Rario is engaging in activities that may violate Indian taxation laws, including not declaring income from virtual digital assets and cryptocurrency transactions. Mishra also said that Rario may be violating anti-money-laundering (AML) laws by not reporting suspicious transactions.

     Mishra said that the Consumer Online Foundation is concerned about the potential impact of Rario's activities on consumers and the digital ecosystem in India. He asked Sitharaman to investigate Rario's business activities and take appropriate action if necessary.

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