The questions asked by a good number of people in India is whether MLM is a money chain and if at all not whether it has any legality in India?
Money Chain is not legal in any countries of the world. It is joining new members and make them pay an amount of money to the company and get a small amount as commission. It is not legitimate. Many people here lose money as they may not be successful in making false promises and thus join new members. Some people who can turn a cow as an elephant with their sweet words can push many in to the pit and make some quick money.
Whereas MLM is the short form of Multilevel Marketing. it is the art of selling the products of a company with the help of memberships. Here usually no one is a loser as everyone is given a product, worth the amount one pays to join or register.
MLM or net work marketing is legal now in many countries. It is not yet legalized in India. There are many companies mushrooming in India with the pretext of MLM. Many are not following the code of ethics but simply start something as they know that there are people readily awaiting to promote/sell even if they introduce cow-dung...!
If you are interested in net work marketing, study the company's profile, see the product and know its worth, and of course study the person and his intentions, who introduces something to you...! Don't become the victim of any cheaters...!