Saturday, 31 July 2010
Andhra Pradesh High Court on Friday (30-07-2010) delivered a land mark judgement against the multilevel marketing companies in the country with caustic remarks.
Corporate Frauds Watch has been waging a relentless battle against such companies and filing criminal cases against the perpetrators of criminal activities. As part of the campaign against multilevel marketing companies, Corporate Frauds Watch has filed implead petitions in the writ petitions filed by several multilevel marketing companies.
The Andhra Pradesh High Court on February 4, 2010 disposed of writ petitions filed by eight companies namely, V-Can Network Pvt Ltd, QuestNet Enterprises India Pvt Ltd, Sistla Raviteja and others of Amway India, Vennala Shopping & Marketing Ltd, Southern Wonder World Resorts Ltd, Maheswara Getit Marketing Pvt Ltd, Shree Sai Empower Marketing Pvt Ltd, and Bodedla Technologies Pvt Ltd.
On Friday i.e. 30-07-2010, the Division Bench of the Andhra Pradesh High Court disposed of afresh three more writ petitions filed by Gemini Techno Marketing Pvt Ltd, Win Win Vartaka Pvt Ltd, and Dew Soft Overseas Pvt Ltd. The Division Bench stated that multilevel marketing (MLM) is a vicious circle and it would be difficult to come out of it.
The Division Bench of High Court comprising Justice Goda Raghuram and Justice Ramesh Ranganathan stated that all multilevel marketing businesses attract the mischief of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 and hence illegal.
The Division Bench also disposed of the public interest litigation filed a retired scientist, Mr R Uma Maheswara Rao stating that the Division Bench of Andhra Pradesh High Court has already pronounced its judgement on Amway