Wednesday, 14 September 2011

Amway is not in a position to fulfill the guidelines set by Kerala Govt

Trivedi is back with a bang show casing once again his little brain about the Kerala State Government allowing direct selling companies to continue their business. What he did not understand is the conditions set forth by the State Government while allowing their business.
The conditions stipulate that there should not be any subscription fee for purchasing products and direct selling agents could go door-to-door to sell their products but they should carry their identity cards issued by an authorised Government agency all the time.
The Chief Minister also said that they should change their business mode of operations before they restart selling products. He also said that they should not function like chain schemes and resort to tax evasion.
The Amway Enterprises crooks have already announced that they are not going to change their business model. In such case how they are going to operate in Kerala is anybody's guess. Either they have to flout the government rules by clandestinely doing the business or close shop.
Trivedi showcases this statement as if the Amway triumphed in the bargain. One has to wait and see what would be the fate of Amway in Kerala. He did not understand that it is a severe set back to the crooks who have been cheating people world over.

4 comments:

Kasey Chang said...

Dear Shyam,

I had just came across this explanation by a chartered accountant in India explaining the law regarding MLM, and I must admit, it is eye-opening. I had not realized that the Apple FMCG vs. India case had already set a precedent, and thus essentially made MLM illegal in India.

http://220.227.161.86/23579august2011journal_122.pdf

However, it appears to only apply to the state of Tamil Nadu.

Pardon my ignorance of Indian legal system, but does this decision affect any OTHER states in India? Or can each state's high court give different decisions? What happens if they conflict?

Sincerely,

KC

corporate frauds watch said...

If one of the High Courts of any State gives a verdict on a certain subject, it could be used again in any State in the same context.

corporate frauds watch said...

And we have another judgement in the same High Court against V-Can Network Ltd.
Andhra Pradesh High Court's verdict against Amway India could be a landmark. Just a beautifully worded judgement unveiling the dubious business model of Amway and pronounced the business model is illegal.
Later the Supreme Court of India held the High Court judgement valid by dismissing the special leave petition filed by Amway.

Kya baat hai said...

Mr Shyam..any latest update on this...