The Division Bench of Andhra Pradesh consisting of Chief Justice A R Dave and Justice Ramesh Ranganathan admitted the writ of mandamus filed by Corporate Frauds Watch against Amway India and issued notices to the principal secretary (Home), Additional director general of police (CID), and Amway India to respond.
After a lively argument for more than 40 minutes, the Division Bench has agreed to admit the writ petition against Amway.
Taking up the writ petition, the Division Bench asked the advocate for Corporate Frauds Watch as to how the scheme of Amway India is illegal. Advocate Mastan Vali explained the Division Bench in detail how the Amway is swindling the gullible. He also narrated the judgment of the Division Bench of Andhra Pradesh High Court and how the government failed to implement the law of the land. The Advocate said that Section 7 of the Prize Chits & Money Circulation Schemes (Banning) ACt, 1978 gives enough powers to the police to raid such premises on mere suspicion and seize incriminating evidence. Though the A P High Court categorically stated that the scheme falls under the Act, the police are not acting to stop the illegal activities of the company.
The counsel for Corporate Frauds Watch pointed out to the comment by the division bench of AP High Court in the para No. 49 of the judgment which said that ''It is a well settled principle of criminal jurisprudence that no person shall be presumed to be guilty until his guilt is proved, but we are unable to accept the broad submissions of the counsel for the Amway that till the conclusion of the criminal case the police have no power to interfere with the business activities of Amway. Section 7 of the Act empowers the police officer to enter, search and seize any incriminating evidence on mere suspicion.'' The counsel for Corporate Frauds Watch said still the police are not acting on various complaints against the scheme of Amway.
The counsel also pointed out to the advertisements of Amway and said these advertisements are nothing but camouflaged ones to perpetuate money circulation scheme. The advertisement directs people to go to Amway website, where the Amway induces people to become members of the scheme which promises more than Rs 50,000 every month if they recruit 102 members his downline.
However, the Division Bench refused to give notices to the electronic media as we could not submit the copies of TV advertisements to the court.
This is a great victory for the right-thinking people all over world and let us hope that the court verdict would do justice to the millions who lost money in this swindle by Amway.
1 comment:
Care to post your writ so I can go through it line by line and demonstrate your ongoing ignorance?
Heck, you even showed it here - Amway induces people to become members of the scheme which promises more than Rs 50,000 every month if they recruit 102 members his downline
If that's the way you think Amway operates, then I'd think it was a scam too. That isn't however at all how it operates. Is there a penalty for lying to the court? Though I guess ignorance may be a defence ....
It's amazing that you can spend so much time and effort criticising a company and yet STILL have no idea how the business model actually operates.
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