What are the Money Circulations Schemes in India and its related law

The scheme which induces to give commissions / incentives based on enrolling or sponsoring new members into the scheme not only on the event of personal efforts of enrolling new members into the scheme but also on the contingency relatives or applicable to enrollment of new members by their downline members.
Sec.2(c) of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 of India defines the Money Circulation Scheme.

• Sec.2(c) "money circulation scheme" means any scheme, by whatever name called, for the making of quick or easy money, or for the receipt of any money or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions;
• Sec.3: Banning of Prize Chits and Money Circulation Scheme or enrolment as members or participation herein : - No person shll promote or conduct any prize Chit or Money Circulation scheme, or enroll as a member to any such chit or scheme or participate in it otherwise, or receive or remit any money in pursuance of such chit or scheme”

• Sec.10: Offences under this Act to be cognizable: - All offences punishable under this Act shall be cognizable”.