Amway India and one of its IBOs Mr G B Triveni Prasad of Secunderabad filed a writ peititon in the Andhra Pradesh W.P.No 21284 of 2008 challenging the Government Order 178 of 2008 after Corporate Frauds Watch insisted action against Amway India when it flouted the government order. The authorised signatory of Amway India Mr Sandeep Prakash filed the affidavit.
In the Para 12 (ix), the petitioner claimed that "Within ten years of its commercial opeations in India, the petitioner's business system has caught the imagination of the people all over India inasmuch the present now has an active distributor network of 4,50,000 across the country."
It is proved that its base has remained unchanged from 2006.
In the Para 12 (x), it was claimed that "The petitioner has achieved a sales turnover of Rs. 800 crore in the year 2007-08 and contributed approximately Rs. 200 crore to the State Exchequer in the form of taxes, during the last financial year. "
The petitioner claims in the Para 14, "That it may be pertinent to mention that Petitioner is a purely entrepreneurial venture with the aim of spreading its base, vocation to the distributor and providing quality products to the consumers. The direct selling method with the Petitioner's model minimises the overheads and advertitising budgets to give profits from such areas to the distributors."
In such case, the Petitioner i.e. Amway India should be happy when the government restricted it from advertising to save more money for its distributors. What is the necessity of challenging the government order?