Saturday, 26 June 2010

All these fraudsters employ same tactic of Amway

The other day I was in the Andhra Pradesh High Court where five cases relating to money circulation schemes came up for hearing. The modus operandi of these all companies is to file a writ petition challenging the police action whenever a criminal case was filed against them and continue their fraudulent activities. Corporate Frauds Watch has chosen to file implead petitions in all these writ petitions including those filed by Amway India.
As many as five such writ petitions have come up for hearing on Friday and it was funny to witness how the counsel for all these fraudsters, except Amway India, struggled to convince the Division Bench that the business model of all these companies is legal. Not surprisingly, the judges on the Division Bench who are well-versed with the dubious arguments of these companies started batting on behalf of the State which filed criminal cases.
The counsel of Gemini Techno Services struggled hard to convince the Division Bench about the employment generated by the company and engaging distributors and their enrollment of more distributors was legal. Every one in the court hall was laughing at the presentation. The counsel was only trying to buy time to reopen the office of the Gemini Techno which was closed by the police. The least-convinced Division Bench commented that it was nothing but money circulation scheme and reserved the order for Monday.
The wonderful question that the Division Bench asked the defending counsel was why the company wanted to adjudicate the issue in the High Court when it was open for it to contest in a criminal court. The Division Bench also wanted to know what is Techno in its business evoking peals of laughter in the court hall.
Notable point is the special government pleader commented in his remarks that the modus operandi of Gemini Techno is same that of Amway India.

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