Monday, 3 January 2011

Police have powers to raid premises of Amway and its copycats

Prize Chits & Money Circulation Schemes (Banning) Act, 1978 bans the organising of Prize Chits or Money Circulation Schemes. Section 7 of the Act empowers the police to enter, search and seize, if necessary by force whether by day or night any premises which he has reason to suspect, are being used for purposes connected with the promotion or conduct of any prize chit or money circulation scheme in contravention of the provisions of the Act.
When the enactment has clearly given the powers to the police, Amway India's counsel contended, "Even assuming that the police are satisfied that the petitioners are indulging in money circulation scheme, they cannot high-handedly interfere with the business of the petitioners till the criminal court after a full fledged trial holds the petitioners guilty of the offence alleged against them."
The AP High Court held, "We have carefully considered this submission of the learned counsel. It is 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 submission of the petitioners that till the conclusion of the criminal case the police have no power to interefere with the business activities of the petitioners."
So the Andhra Pradesh High Court held that the police have powers to stop the business of Amway.
All these crooks employ the same method of obstructing justice challenging the Section 7 of the Act.
In the Apple FMCG case also the petitioners sought for the direction of the judiciary to stop the police from surveillance of their meetings. The Madras High Court held, " In this part of India, people are gullible and fall an easy prey to the tall promises made through the media. The petitioner is not entitled for direction for prohibiting the authorities from keeping surveillance over any meeting. Section 7 of the Act confers the right on the police officer to enter any premises, where he has got a reason to suspect that the premises are being used for purposes connected with the promotion or conduct of any prize chit or money circulation scheme."
The Apple FMCG also contended that there have been no complaints against the company from any distributor. However, the Madras High Court held, "The mere fact no complaints were received does not make an act legal, if it be otherwise illegal."
It is clear that the police have every power to stop the illegal business of all these multilevel marketing or referral marketing or network marketing or direct selling which are nothing but illegal money circulation schemes. Be it Amway, Herbalife, Forever Living Products, Tupperware, AMC India, Hindustan Unilever Network Ltd and others, they are all liable to be punished under the provisions of the Act.

7 comments:

Gireesh Kulkarni said...

I appreciate your work , but i believe you r working in wrong direction, all product based companies are giving something (like products kit) but now a days investment companies are mushrooming n looting people's hard earned money like anything , you must take these kind of companies for consideration. companies like Unipay group, club-asteria, uniindex, nanoforex, max forex, fine india, ATCR, RKTH, etc

Think and grow said...

Hi Shyam,
While browsing google,I stopped at your blog. I cud read some of th article and there are many more. I cud observe your goal is to publisize the facts regarding MLM. Amway is highlighted most and I am shocked. I would like to know few facts whether Amway exists in America? If yes, whether US laws could prevent Amway from doing such business.Further is there is issues on quality of the products of Amway. Are they harmful? or is it only related to proce. Let me know in details. I am using Amway nutrilite products for a year through one of my relative who is a distributor.After reading your blog I am confused and worried.

Shyam Sundar said...

Friends, multilevel marketing is nothing but cheating the gullible and the Supreme Court of India held that the organisers of such schemes have been doing them knowing fully well that it is not going to work forever. That is why they should be booked under the Section 420 of IPC (cheating).
Why I am concentrating on Amway is that is the mother of all scams in India and the world at large. That is the biggest cheating company.
As far as the products are concerned man people have been using these products thinking that they are of good quality. It is not true. For a fraction of the price, one would get better quality products in the market. Amway India is only cheating the people on the promise of 'total financial freedom'. Come out of it and help others to come out of the web.

am said...

You are absolutely a big GOAT. A complete fool who became Idiot and spreading nonsense in the market. You seems to be a failure in amway business.right?? You also do not look a successful possessional in law who does not understand what is EVIDENCE and spreading rumor.You did not answer whether US banned Amway...? You perhaps do no have any answer. Do not mind. Let me clean up your brain.
1. There are many MLM companies who are involve in fraud. Amway is a victim being honest MLM.
2. Products are good. Use Dish drop, SA8, Satinique, Dynamite, Soap you will understand. Perhaps do not know names of the products also.
3. read about Amway foundation how they contribute socially. You perhaps have never helped a begger in your locality.
4. look at the tax paid by Anmway to Indian govt.
5. One of Olympic sponsor Nutrilite which is amway product. Olympic association is idiot???
6. Read this : - "Amway China
Amway grew quickly in China from its market launch in 1995. In 1998, after abuses of illegal pyramid schemes led to riots, the Chinese Government enacted a ban on all direct selling companies, including Amway.[23] After negotiations, some companies like Amway, Avon, and Mary Kay continued to operate through a network of retail stores promoted by an independent sales force.[24] China introduced new direct selling laws in December 2005, and in December 2006 Amway was one of the first companies to receive a license to resume direct sales. At the time they had a reported 180,000 sales representatives, 140 stores, and $2 billion in annual sales.[25] In 2007 Amway Greater China and South-east Asia Chief Executive Eva Cheng was ranked #88 by Forbes magazine in its list of the World's Most Powerful Women.[26] In 2008 Amway Greater China was Amway's largest market, reporting 28% growth and sales of ¥17 billion (US$2.5billion)".
7. why amway diamond would like to show their income. have you ever shown your income to anybody??
8. I can give you many more example.

Obtain proof. Kanon andha hein... kanon need proof.

I hope you would publish my message in your blog. Thank you, Dont mind. You indeed need brain wash which is full of Garbage.

am said...

Remember..... All cannot be on the top. If you look at any company, there cannot be 100 CEO. There would be one.Its like bell curve. Higher you want to achive, narrow is the space. At the bottom there would be many space. Hence, in amway as well, all cannot be on the top. In your language if I give the example, you are not a top advocate in your locality. Ram jetmalani is far off. Your are perhaps like one of amway business owner who could not become diamond in your profession. This lesson no one.

If your are not Ram jethmalani, you cannot enjoy the luxurious life style which Ram Jethmalani enjoys. You will keep on writing nonsense blog which he does not.Similarly, all amway business owner who does ot become diamond cannot enjoy lifestyle of diamond. Hence its is imperative, failure like you will keep on telling Amway gives false promise of life style.This is lesson no. 2.
Hope I could brain wash your brain to some extent.

Shyam Sundar said...

This fellow refuses to see the reality. It is clear that he has not read the Andhra Pradesh High Court judgement. Yeah, he is right everyone
would not be on the top. If only he could fool and made them scapegoats, he could be on the top.
This type of crooks are everywhere.
Even the Supreme Court of India accepted the judgement of the Andhra Pradesh High Court judgement but this fellow says that he is right in cheating others.
All the points he mentioned are wrong. There are many MLM companies cheating people. But officials turn Nelson's eye for reasons better known to them.
The claim of good products is not true. It was established by Andhra Pradesh State Food Laboratory. IF the products are so good why don't they sell them in open market. No fool would buy them at such exorbitant prices.
After China wanted threw the Amway out, they negotiated and begged the Chinese that they would not indulge in pyramid scheme i.e. 6-4-3 model. That is why they are still in China./
After pocketing billions of rupees, these cheats give pittance for the so-called social causes. It is nothing but once again cheating.
Paying tax would not absolve these crooks from the crimes they are committing.
Last but not least, this spineless fellow does not have guts to come out with his real name.

Shyam Sundar said...

The following is the text of the latest mail sent by am:
"My name is Abhijeet Mantri. Pl excuse if I have hurt you. But you must understand few point.
AP judgement is baseless unless there is no ban on Amway. Products are not good for what reason? Bad product or high price. If high price, my learned friend, this cannot attribute to quality of the product. if u ask why they do not sell in open market u need to look at their business model. here are some facts at ur disposal. if u look at other product in the market, u cannot earn while consuming it. Amway says, middle man are eliminated. If u consume and refer the product, u earn commission. Thats all in brief. now pl provide some some instances, where people used the product and found it harmful. pl provide some instance where people did not get his/her commission. pl provide instances where there is no retail business done. Also note, Amway also provides grace period within which u can withdraw and get ur joining fees back. This is ethical business. Pl provide instances of violation. If there are such instances, let me know. together we shall fight my friend.Pl note I am not a Amway distributor but I have seen many people earn their livelihood.
Pl read one book by Pinky Jain ( Not into any MLM) to understand MLM. U haveing nothing in your hand except the AP judgement. So I cut a sorry figure to you. Pl refrain from provoking baseless information."
Abhijeet Mantri conveniently forgets that several millions of people have lost billions in the MLM businesses of several companies including Amway. If you do not have respect for the judgement of a High Court what else do you respect. The High Court has exhaustively studied the business model of Amway and held that it is illegal. The criminal case was filed against Amway India and it is under trial.
People like you are everywhere blindly supporting a cheating company for your own personal benefit forgetting about the loss to the people of India.
The business model of Amway India is illegal and that is why we are asking the Amway to sell its products in the open market if the products are 'good'.