‘Investigate Sachin Tendulkar Backed Rario’s Business Activities’ Consumer Online Foundation Writes to Finance Minister Nirmala Sitharaman
Bejon Kumar Mishra, Managing Trustee, Consumer Online Foundation said in the letter to Sitharaman that as per its official website, Rario refers to itself as the world's first and largest licensed digital cricket collectible platform, dedicated to bringing the fans closer to the sport like never before. In reality, Rario is an NFT and cryptocurrency platform, a fact which is not obvious to a visitor to their website.
New Delhi, April 7: 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 crypto currency and anti-money-laundering (AML) laws. Bejon Kumar Mishra, Managing Trustee, Consumer Online Foundation said in the letter to Sitharaman that as per its official website, Rario refers to itself as the world's first and largest licensed digital cricket collectible platform, dedicated to bringing the fans closer to the sport like never before. In reality, Rario is an NFT and cryptocurrency platform, a fact which is not obvious to a visitor to their website. Rario, in a statement, said: "We adhere to all the KYC requirements and fully comply with the applicable laws, including taxation." Aleem Dar Receives Guard of Honour From Bangladesh and Ireland Players After Officiating in Final Test Match of His Career (See Pics and Video).
Rario refers to itself as a company engaged in the buying and selling of Digital Player Cards. Indian cricket fans form the majority of its consumers. By its own admission in a press release dated March 20, "Rario has sold over 1.3 million player cards to cricket fans", which is a phenomenal number in such a short span of time.
Rario counts cricket legend Sachin Tendulkar as its strategic investor. "Rario's parent company Digital Collectibles Pte. Ltd. is based out of Singapore whose Indian wholly-owned subsidiary, Rario Digital Private Limited is located in New Delhi. This is an interesting arrangement for the entities to circumvent the Indian laws to park monies overseas. Our initial study has revealed that Rario violated the applicable taxation provisions of virtual digital assets and crypto currency in India. It is observed that in all transactions in Rario the consumers are misled in a deceptive manner by adopting unethical marketing practices, which are not only deemed as unfair trade practices but also violating the rights of the consumer," Mishra said. Telangana: Cricketer Dies in Siddipet Due to Heart Attack During a Match.
He said Rario's current KYC processes tantamount to violation of anti-money-laundering (AML) laws of the country. As per the Finance Ministry recent notification, entities dealing in virtual digital assets (VDAs) will now be considered 'reporting entity' under the Prevention of Money Laundering Act (PMLA) and need to maintain KYC details or records of documents evidencing the identity of its clients and beneficial owners as well as account files and business correspondence relating to its clients. 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.
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, Mishra said.
(The above story first appeared on LatestLY on Apr 07, 2023 11:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).