Last Updated On: March 22, 2019, 1:13 p.m.

Details relating to Promoters / Directors of Private Limited Company or Limited Liability Partnership (LLP) have to be submitted to the Ministry of Corporate Affairs (MCA). This information is available in public domain on the website of Ministry of Corporate Affairs. Some scammers take advantage of this public information and con new Companies or LLPs with their money. This article is aimed at creating awareness amongst Entrepreneurs not to be a victim of VPP Scam of Company Incorporation, LLP Registration and DIN

To know more about this scam, we need to understand what is VPP. VPP is Value Payable Post service offered by India Post. VPP is designed to meet the requirements of persons who wish to pay for the articles sent to them at the time of receipt of article. Items such as Parcels, Letters, BOOKS etc can be sent through VPP and the payment is collected at the time of delivery. However, the receiver may decide whether to receive the parcel or not. In other words, VPP is similar to Cash on Delivery (COD) offered by ecommerce stores. However ecommerce stores send Cash on Delivery only when the same is requested by the customers.

VPP Parcel is sent on obtaining Director’s Identification Number (DIN) and/or on incorporation of Private Limited Company or LLP.

When Director Identification Number (DIN) is applied for an individual, the current residential address is provided to the MCA. The scammers obtain name and residential address from the MCA Portal and send some books to that address. It is advisable not to accept this kind of parcel.

Same way, on incorporation of Private Limited Company or LLP, the information is published on the MCA portal. The scammers use this information and send VPP containing some books or reading material which is not ordered by the Company. The VPP is sent to the Registered Office of the Company.  It is always advised not to accept any such VPP parcel. Few banks also approach the Companies and their promoters for opening of Bank Account by getting the information from MCA portal.

It is therefore very important for all the entrepreneurs / promoters to remember that MCA never sends any information or communication through VPP. It is advised not to accept any such VPP if not ordered by you.

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