What sort of advice you want, Mr.Great White?
Though it is not discernible for whom you've raised this question, it clearly shows your concern for the sordid state of affair in the matter of private recruitment in your State. So, nobody can give you better advice than yourself.
If you are an employer, don't hire the services of a Recruitment Consultant. Do yourself all the spade work from screening of applications to short-listing of probable final candidates. When the consultant does all these including the creation and up-dating of his own data base of suitable candidates likely to be needed by industries in his area of operation, ascertaining their skill-levels and expertise at times with the help of paid associates well-versed in the respective field thereby saving a lot of your time and energy, is it not fair that he should be suitably compensated by you? When you refuse and instead allow the consultant to collect the recruitment fees from the candidates selected by you that too, at times through yourself in fixed and periodical instalments apparantly with the consent of the moot new recruits, though not being a legal contravention for in each stage you have intelligently plugged the gap, certainly it seems not only unethical but also quite unprofessional.
If you are a prospective employee, don't agree to such terms and conditions relating to the cost of recruitment. Once agreed, please do not complain about it.
If you are a recruitment consultant, don't charge anything from the job-seekers other than a nominal registration charges to maitain their names alive in your data base. Make it clear to the employers seeking your services that they alone will be charged a definite service charges per every selected candidate inclusive of the costs of all the processes preceding the submission of the list of final candidates.