STATEMENT OF HON'BLE MINISTER OF STATE IN THE MINISTERY OF FINANCE & COMPANY AFFAIRS AGAINST AMWAY IN LOK SABHA
(SHRI ANANDRAO V. ADSUL)
GOVERNMENT OF INDIA MINISTRY OF FINANCE & COMPANY AFFIARS DEPARTMENT OF ECONOMIC AFFAIRS BANKING DIVISION
LOK SABHA
UNSTARRED QUESTION NO.4889
TO BE ANSWERED ON THE 20TH DECEMBER, 2002 / AGRAHAYANA 29, 1924 (SAKA)
RBI ACTION AGAINST AMWAY INDIA
QUESTION
4889.
SHRI RAVINDRA KUMAR PANDEY DR. S. VENUGOPAL DR. M.V.V.S. MURTHI SHRI RAM MOHAN GADDE Will the MINISTER OF FINANCE AND COMPANY AFFAIRS be pleased to state : -
a)
Whether any observations has been passed by RBI against AMWAY India and its promoter’s company.
b)
if so, the details of observation passed by the RBI against this company;
c)
whether the said company is involved in violation of various rules;
d)
if so, the details thereof;
e)
whether some members of parliament and investors Association brought to the notice of RBI and Government regarding the violations committed by the said company; and
f)
if so, the details of action taken by the Government against this company?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE & COMPANY AFFAIRS (SHRI ANANDRAO V. ADSUL)
(a),(b),(c)&(d): Reserve Bank of India (RBI) has reported that it had examined the scheme of M/s. Amway India Enterprises (AMWAY) in March 2001 and again in May 2002 aiming at creating a chain of distributors and taken a view that the said scheme appears to be a prize chit or money circulation scheme as defined in and prohibited under Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The offences under the said Act are cognizable and the police authorities of the concerned State Governments have to investigate and take a view whether the scheme of Amway India attract the prohibition under the said Act.
(e)&(f): Amway had made representation to the Minister (Economic), Embassy of India in Washington DC that its schemes are not covered under the Act. RBI had once again examined the matter and it had advised to the Embassy that the Amway’s activities appear to attract the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. RBI has forwarded a report in this regard to the Police authorities who are empowered under the Act for taking necessary action.
(SHRI ANANDRAO V. ADSUL)
GOVERNMENT OF INDIA MINISTRY OF FINANCE & COMPANY AFFIARS DEPARTMENT OF ECONOMIC AFFAIRS BANKING DIVISION
LOK SABHA
UNSTARRED QUESTION NO.4889
TO BE ANSWERED ON THE 20TH DECEMBER, 2002 / AGRAHAYANA 29, 1924 (SAKA)
RBI ACTION AGAINST AMWAY INDIA
QUESTION
4889.
SHRI RAVINDRA KUMAR PANDEY DR. S. VENUGOPAL DR. M.V.V.S. MURTHI SHRI RAM MOHAN GADDE Will the MINISTER OF FINANCE AND COMPANY AFFAIRS be pleased to state : -
a)
Whether any observations has been passed by RBI against AMWAY India and its promoter’s company.
b)
if so, the details of observation passed by the RBI against this company;
c)
whether the said company is involved in violation of various rules;
d)
if so, the details thereof;
e)
whether some members of parliament and investors Association brought to the notice of RBI and Government regarding the violations committed by the said company; and
f)
if so, the details of action taken by the Government against this company?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE & COMPANY AFFAIRS (SHRI ANANDRAO V. ADSUL)
(a),(b),(c)&(d): Reserve Bank of India (RBI) has reported that it had examined the scheme of M/s. Amway India Enterprises (AMWAY) in March 2001 and again in May 2002 aiming at creating a chain of distributors and taken a view that the said scheme appears to be a prize chit or money circulation scheme as defined in and prohibited under Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The offences under the said Act are cognizable and the police authorities of the concerned State Governments have to investigate and take a view whether the scheme of Amway India attract the prohibition under the said Act.
(e)&(f): Amway had made representation to the Minister (Economic), Embassy of India in Washington DC that its schemes are not covered under the Act. RBI had once again examined the matter and it had advised to the Embassy that the Amway’s activities appear to attract the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. RBI has forwarded a report in this regard to the Police authorities who are empowered under the Act for taking necessary action.
5 comments:
don't go in history, check out the link of supreme court which i have posted the link and it is the latest one of all compared to all urs....
if don't find the link then let me know
2007 (4) ALT 808(D.B.)
Trivedi what you have posted as supreme court links are actually statements of Amway. Kindly go through them before advising others to read them.
hello and what about the other two,
In what could undermine the flourishing business in India of one of the world's largest direct selling companies Amway Corp of USA, the Supreme Court Tuesday dismissed its plea to stop an ongoing probe by the Andhra Pradesh Police into the legality of its business scheme.
is not statement by amwaye
i have just joined amway and im an MBA so probably im aware when an MLM becomes a ponzi scheme, or a pyramid scheme, and it is not a pyramid scheme since there is an opportunity to Downline to even earn more than Upline, its not a ponzi because profit is made from sale of quality prod., if you want more clearance on this topic or want to achive financial freedom, time, money, peace of mind, world tour, and good character, email me at rohit.pahalwan@gmail.com and i'll show you a part time legal business and a legal and sucessful way to achieve and develop that. god bless.
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