NFT platform Rario misleading consumers – Consumer rights body asks FM Nirmala Sitharaman to investigate Sachin Tendulkar-backed platform

NFT platform Rario misleading consumers – Consumer rights body asks FM Nirmala Sitharaman to investigate Sachin Tendulkar-backed platform

Photo : ET Now Digital

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.

Consumer Online Foundation Mishra stated that their 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,” IANS reported quoted him.

He further added that Rario’s current KYC processes tantamount to violation of anti-money laundering (AML) laws of our 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 Liberalised Remittance Scheme (LRS) of the Foreign Exchange Management Act (FEMA) 1999, without any limits on the transactions.

Commenting on the development, Rario told ET NOW Digital, “We adhere to all the KYC requirements and fully comply with the applicable laws, including taxation.”