Amway India's chain scheme is illegal: SP
Showry Ongole: Prakasam Superintendent of Police Dr Kolli Raghuram Reddy asserted on Saturday that Amway India's business model was illegal and...
Ongole: Prakasam Superintendent of Police Dr Kolli Raghuram Reddy asserted on Saturday that Amway India's business model was illegal and warned people not to fall prey to the easy and quick schemes extended by various companies in the guise of directly selling products and services.
In an interview with The Hans India and HMTV, the SP said that the people who join in such schemes and make others join in such schemes are also liable for prosecution. Pointing out that one of such companies which is offering easy and quick money to people is Amway India Enterprises, the SP recalled that the Division Bench of Andhra Pradesh High Court in unambiguous terms held that the business model of Amway India is illegal after hearing at length the arguments from both sides.
The print media or the electronic media should not carry the advertisements of such companies and the government has powers to attach the properties of such publications, he cautioned. The police official said that the State government had issued an order in 2008 not to publish the advertisements of Amway India holding it as an illegal company.
Countering the recent propaganda by Amway India that the officials had been making false statements against its business model, he said that this amounted to contempt of court as already the Andhra Pradesh High Court held its business model as illegal. Later, the Supreme Court also upheld the AP High Court judgment, he pointed out.
The SP said that everyone who was involved in the operations of Amway India would be liable for prosecution. He warned the people to beware of the chain schemes which had been cheating people in large numbers. "People who lose money in such schemes are also liable for prosecution since the Prize Chits and Money Circulation Schemes (Banning) Act clearly says that joining and making others join in such schemes is a crime," he said. The SP pointed out that already a criminal case had been pending investigation in the Two Town police station in the town.