Amway India cannot use the Government approval as shield

Many a time we come across an argument by Amway apologists that it was the Indian Union Government only which had given permission to Amway to run the business in the country. They also point out that it was a committee headed by the then Finance Minister and now Prime Minister Mr Manmohan Singh which had given the permission to the Amway India.

Assistant Solicitor General, Mr A Rajasekhar Reddy, appearing for the Union of India submitted to the Andhra Pradesh High Court which was hearing the batch of writ petitions filed by Amway India in 2006 that the scheme approved by the Government of India is different from the scheme which the Amway India is executing and, therefore, the approval given by the Government of India cannot be used as a shield by the Amway India for carrying unlawful business.

Mr Rajasekhar Reddy also submitted that the pyramid structured marketing schemes fall within the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978 and the people who are running those schemes cannot claim the benefit of the approvals granted by the Government of India.

Even the other companies which are in the multilevel marketing racket claim the same. But the Government did not give permission to any of these companies to run illegal schemes.

It is high time people realised the real issues behind such statements and do not fall prey to such fraudulent schemes.