One country where frauds are common is India. Every now and again, we see something that is illegal in some way. Another sophisticated scam known as the “VPP SCAM” is added to this. So the question is, what exactly is this scam, and who should be concerned? This time, aspiring entrepreneurs are afraid of being victims of such fraud. Entrepreneurs who want to register their private limited business give the Ministry of Corporate Affairs all of their information. Now that this information is public, the public has access to all the information regarding the newly registered companies.
What is VPP Post
The Indian Postal Services provides the value payable post (VPP) service. According to this approach, the recipient of the goods only pays the item’s worth after receiving it. Registered Parcels, Registered Letters, Registered Book Packets, Newspapers Prepaid with Postage, etc. are among the items that can be transmitted through VPP.
Value Payable Post (VPP Scam)
The category of frauds as a whole includes VPP (Value Payable Post) schemes. A copy of the registration certificate, books, journals, and other goods are sent to newly established firms by different book publishing houses in accordance with the new laws of the Ministry of Corporate Affairs (MCA), who also demand a sizeable sum of money via VPP Post. To give the impression that MCA sent all of the material to high management, all of the information has been bundled.
For a high fee, newly formed companies are given books that seem educational but are useless to business directors, such as statutes and regulations for corporations and a copy of the registration certificate that can be acquired online with just one click. Most individuals fall for this scam and pay the postage cost.
Also, the applicant’s information is made available on the MCA website as soon as the Director Identification Number (DIN) application is filed. Then, fraudsters utilise this information to send a VPP Post containing a demand for a big number of money and worthless books or reading material. After inspecting the package and concluding that MCA was the sender, the recipient makes the necessary payment.
Scam or Fraud Along With Business Registration or Incorporation
- Read about and be aware of the Divya Book Company, Legend Book Company, MEGA Book Company, and other companies’ fraudulent company incorporation or registration practises.
- When a business owner registers their company and completes the last stage by just opening a current bank account, there is a potential that they could become a victim of a VPP Scam scheme.
- After Ministry of Corporate Affairs (MCA) posts information about company or LLP registration on their website, scammers exploit this information to obtain director and promoter details, such as their names, registered offices, and mail addresses.
VPP Post regarding DPIN or DIN Obtaining
- The current address of the DIN applicant is available to the MCA upon submission of the DIN application to the MCA. With this information, scammers send a VPP Post that most frequently includes a printed version of the DIN Letter as well as other useless books or reading material and a money request.
- This VPP Post must be rejected by the Entrepreneur / DIN Applicant. The MCA website offers free downloads of DIN in the form of letters that are generated online. Hence, after acquiring a DIN, there is no need to make payments for things supplied via VPP Post.
Key Points
The sole purpose of writing this post is to raise awareness among business owners, recently formed corporations, and other start-ups. By knowing this knowledge, they can avoid being taken advantage of and suffering such losses.
- Firstly, if you haven’t ordered any such parcels or orders, don’t pick them up. This is advice for all newly registered companies as well as companies that are in the registration process. Moreover, if you placed an order prior to receiving the package, contact the publishing house to confirm.
- Second, the MCA quite accurately stated that all paperwork pertaining to the registration of companies in India can be accessed on the MCA’s website. It is best to download all documents from the website independently rather than waiting for any kind of package to come from the government in order to protect oneself from such scams.
- Thirdly, be cautious whenever you acquire a VPP and tell everyone in your family about it, advising them to exercise same caution.
- Fourthly, if you find yourself in a similar circumstance, do not be afraid to raise your voice. If these incidents go unreported, more and more people will be taken advantage of.
