Amway India chief likely to appear before ED today

HYDERABAD: Amway India chairman and managing director William Scott Pinckney would 
appear before Enforcement Directorate (ED) authorities in Hyderabad on May 31 to 
answer alleged violations of the Foreign Exchange Management Act (FEMA) by his 
company. 

Though the Amway India chief had appeared before the ED authorities in Hyderabad a 
few months ago, as they were not satisfied with his replies, he was summoned 
again. Though Pinckney along with two other Amway directors was arrested in Kerala 
on Monday, he was later released on bail and the ED expects him to appear before 
them next Friday. 

The Kerala police had arrested Pinckney on charges of cheating and violation of 
the Prize Chits and Money Circulation Schemes (Banning) Act 1978. The AP high 
court had earlier held as illegal the multi-level marketing methods (MLM) of 
Amway. The Reserve Bank of India (RBI) too issued guidelines which clearly put the 
activities of Amway under the purview of banned activities like lottery and 
gambling. Foreign Exchange Management (Current Account) Rules 2000 issued by the 
RBI brings multi-level marketing techniques and methods under the schedule of 
banned activities. Amway India has been accused of repatriating crores of rupees 
from India to the US, where its headquarters is located. Rules do not permit such 
repatriations particularly in respect of monies that were made out of gambling and 
lotteries. 

In his first deposition before the ED earlier, Pinckney told them that Amway had 
obtained the necessary approvals from the Foreign Investment Promotion Board 
(FIPB) before setting foot in India in 1999. But, later several courts in India 
including the Supreme Court had held that the kind of activities being promoted by 
Amway and other multi-level marketing firms were nothing but gambling and hence, 
cannot be permitted. 

In fact, RBI came out more clearly in this regard wherein it said that multi-level 
marketing is akin to lottery and gambling. Earnings from such activities made here 
by foreign firms should not be repatriated to foreign shores. But Amway has been 
doing this for one-and-a-half decades and it has already sent out several hundred 
crores of rupees to the US, official records say. 

The Times of India (M Sagar Kumar, TNN | May 30, 2013, 02.19AM IST)

Gullible housewives lose money in Amway tangle

http://newindianexpress.com/states/kerala/Gullible-housewives-lose-money-in-Amway-
tangle/2013/05/29/article1610789.ece


By Athul Lal AG / Arun M | ENS - KOZHIKODE 29th May 2013 08:43 AM

The meltdown of US direct-selling giant Amway seems to have begun in Kerala with 
the arrest of its CEO William Scott Pinckney and two directors from Kozhikode on 
Monday. Police officials probing the case believe the amount of fraud detected is 
only a tip of the iceberg as Amway does country-wide operations.

And at the receiving end are a bunch of gullible housewives from the lower middle 
income bracket who have unwisely invested hard-earned money in this venture eying 
the quick returns promised by Amway.

Madhavikutty, 53, of Mukkam in rural Kozhikode had invested in Amway as a shortcut 
to multiply her money to construct a house. As her husband was bedridden, the 
income from her beauty parlour at Mukkam was the family’s only revenue. She came 
to know about Amway through her friend, who was a native of Pavangad in Kozhikode.

“The training sessions that I had attended were literally a magic world. Their 
words were so trustable that those who attend the class would definitely join the 
network. I also did join by remitting a fee of Rs 999 and became an Independent 
Awmay Business Owner (ABO) with Amway. Then, I attended similar sessions in Kochi, 
Thrissur and Coimbatore and had purchased products worth Rs19,000,” recollected 
Madhavikutty.

“During the training sessions, the company enticed us by introducing certain 
persons who had become millionaires by selling Amway products.

“They always compelled us to sell the products and recruit people to make money. I 
had bought almost 90 per cent of the products marketed by Amway. Due to the heavy 
pricing, we could not sell the products. And the company refused to accept the 
unsold products. In the process, I lost around `6 lakh, the amount which my 
husband had received while retiring from service,’’ she said.

Vishalakshi, 48, of Vengerimadom near Chathamangalam had invested Rs 3 lakh in 
Amway in terms of purchasing products and taking insurance policy. 

Why Amway is not taking legal recourse to resist criminal case?

With the arrest of chairman and chief executive officer of Amway India Enterprises William S Pinckney and two of the directors, an average person naturally thinks why Amway is not taking legal recourse to resist the criminal cases against the company and its executives.

In fact, Amway India has no legal recourse left for it as it has exhausted all its chances way back in 2006.

After the Criminal Investigation Department’s Economic Offences Wing (EOW) headed by the then superintendent of police V C Sajjanar filed a criminal case against the Amway India, the company reacted immediately and filed a writ petition in the Andhra Pradesh High Court appealing the court to declare its business model as legal. It boasted that it has been following the same business model in about 60 countries.

However, the Andhra Pradesh High Court thoroughly dissected the business model of Amway India and stated to the effect that its business model is nothing but a camouflaged money circulation scheme with the company making easy and quick money.

In a nut shell, the AP High Court held that the business model of the company attracted the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The Amway India then preferred to file a special leave petition in the Supreme Court. After hearing the legal luminaries like Soli Sorabji on behalf of the Amway India, the Supreme Court upheld that judgement of the AP High Court and instructed the CID of AP to complete the investigation and file the charge sheet in six months. Now, the criminal case is pending trial in the Chief Metropolitan Magistrate Court, Nampally, Hyderabad.

In this backdrop, there is hardly any legal course left for Amway India when a young IPS officer Jayanth Jayanathan proceeded against the multinational company and filed a criminal case against it. However, the Amway India encouraged its IBOs to take out a procession to the chief minister’s residence to appeal that they lost their livelihood. The things seemed subsided for a while.

However, once the law is set in motion, it would take its own course to take the case to its logical end.

That is exactly what is happening now. The criminal case was filed and the accused has to be arrested to be produced in the court of law. Then the charge sheet would be filed and the trial to be commenced. The accused secured the bail but has to attend the trial as in the case of Nampally court where they are regularly attending the trial for the last several years.

The judiciary has to decide whether people are losing livelihood or being robbed.

Amway India Chairman, 2 Directors arrested

Kozhikode (Kerala): Network marketing firm Amway India Enterprises Chairman and CEO William S Pinckney and two company Directors were arrested here on Monday on charges of indulging illegal money circulation scheme under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act.
The two directors are Sanjay Malhotra and Anshu Budhraja, crime branch sources said.
The arrests were made on a complaint of a woman who claimed to have incurred loss through the network and on the basis of three cases registered against the company last year in Wayanad district, they said.
Police had questioned the trio earlier this month and had asked them to report again today for further questioning. They were arrested when they arrived at the police station.
Last year, the crime branch (economic offences) wing here had conducted searches at the Amway office at Thrissur, Kozhikode and Kannur as part of its crackdown on money chain scheme activities. Their godowns at these centres were closed and goods produced were also seized.
The searches were launched following a complaint lodged by Visalakshi of Kozhikode claiming that she had incurred losses.
William Pinckney is already facing a similar criminal case in Andhra Pradesh. The trial of the criminal case against Amway India has been going on in Chief Metropolitan Magistrate court at Nampally, Hyderabad for the last several years. Five more criminal cases are pending investigation in various police stations throughout Andhra Pradesh - Pattabhipuram police station, Guntur, Chikkadapalli police station, Hyderabad, Nacharam police station, Cyberabad, Governorpet police station, Vijayawada.
When criminal case was filed against Amway India, the company filed a writ petition in AP High Court and the in its judgement, the AP High Court held that the business model of Amway Indi Enterprises is illegal and attracted the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978. Later, the Supreme Court also upheld the judgement of AP High Court after the Amway India filed a special leave petition

Abhaya Gold bubble burst, BUT

Finally, the Abhaya Gold bubble burst. Police arrested the managing director of Abhaya Gold Koganti Srinivasa Rao who has been evading the arrest for quite sometime. It is yet to be ascertained how much money he has actually collected and how much money he has paid to the brokers aka agents.
These brokers are the real culprits who induce their friends and relatives to put their hard-earned money into these fraudulent blade companies.
Since Peerless, Sahara, Golden Forest and today's Akshaya Gold, Abhaya Gold, AgriGold, these companies have been duping millions in spite of the warnings by the right-thinking people not to fall prey to such fraudulent schemes.
Corporate Frauds Watch has been warning people for the last six years not to lose their money in these schemes.
Some of these companies collect monies in the name of real estate while some companies defraud people in the name of products and services.
Whatever be the scheme, people are the losers.
Unfortunately, they never learn from the past mistakes. Moreover, these fraudulent elements preach them the 'truth' to look for money where you lost. That is why these people keep on looking for money in some other scheme all the time.
THERE IS NOTHING LIKE EASY AND QUICK MONEY. IF YOU WORK HARD AND SAVE MONEY. THEN ONLY YOU WOULD BE HAPPY IN YOUR LIFE.

Full text of Police interrogation....Gopal Shekawat

Full text of police interrogation of Gopal Mohan Singh Shekawat released by the police:

INTERROGATION REPORT OF GOPAL MOHAN SINGH SHEKAWAT S/O MOHANSINGH SHEKHAWAT, 47 YEARS, RAJPUT BY CASTE, SURAT, GUJARAT STATE (A-2) (C.M.D OF NMART RETAILS PRIVATE LIMITED)  IN CR.NO. 154/2012 U/S 406,420 IPC AND SEC. 4,5 & 6  R/W 3 OF THE PRIZE   CHIT  AND MONEY CIRCULATION  SCHEMES (BANNING) ACT SEC.5 OF THE A.P. PROTECTION OF DEPOSITORS  OF FINANCIAL ESTABLISHMENTS ACT, 1999 OF KANDUKUR TOWN POLICE STATION.

1^ST DAY

Date : 12-05-2013 at 10 A.M                                    Place : Sub-Divnl. Police Office,

                                                                                     Kandukur.

               I am the native of Sikar Rajastan, Purohitjeekidhani, Radhakishanpura, Sikar District, Rajastan  State.  I have completed  SSC in Rajastan State.  In the year 1986 I have reached Bombay, Boriville and started working along with my friend Arjuna Kumar Varma who is a building contractor started work up to 1988. My friend had given an opportunity to develop contract works and I have taken my routine expenses from him only.   While I was in Mumbai, I have completed graduation B.com through correspondence course.  In the year 1988, I had transferred to Bahindar and started labour contracts by residing in Bahindar East until that labour contract was completed upto 1992. I have lost my father in the year 1990.  I got love marriage with one Prathibha Shekawat in the year 1991.  In the year 1992 I have started my business i.e., export of garments  and importing like coils and iron steel as indenting agent from the different companies. In the year 1995 I will start import of computer parts and I have used to purchase the computer  parts from Hongkong and used to sold in India.  In the year 1997 electronic goods markets is going to down, subsequently  import business is going to stop and I have changed my business to  iron and steel trading like beam, channels and  bars took from the company and sold to the builders and local traders ON  commission basis.  In the year 1999 myself started business at Dubai intending to purchase and sale some items from Dubai and other countries for trading based business and  went to Dubai along with my family i.e., wife for trading business.  In the year 2001, I returned to India and started Garment business. But I have not succeeded in the business. In the year 2002 I have changed my family to Surat and started to  work in Gujarat by taking sick industry, demolishing the industries and sell the  same up to 2005.  After 2005 that scrap business market is going  down, nobody  purchased the scraps.  In the year 2006-2007, I have started business i.e., purchase and sale of building to the corporate companies so that I can earn good money.  This is not continuous business and I have faced so many problems in that business. Then we have decided to establish continuity of the business and decided to get the knowledge in retail business and started to gain some knowledge. I have started a retail shopping mall business in the year 2008 and bought one company by name New Look multi Trade Private Limited, Surat.  Before that Reena Dargar and Vijaya Dargar are directors of the company and promoters also.  Then we have took company from them of my two friends i.e., one Chandra Prakash Lakshak and one Mr. Dharmendra Ram Swaroop Anand.  The company was registered in Mumbai in the year 2008 and I have changed share holding of the company and changed the  directors also.  I have entered into company on 2009 by holding authorized capital of Rs. 01,00,000/-. In the year, 2010     I have got Chandra Prakash retired from the company and appointed Deepak Shekawat (my brother) in my company and after some time Deepak Shekawat was retired and put Mohammed Salim Khan as one of the Director by holding some shares and now he is now continuing in the company. New look multi Trade Company name was changed  to New look retails Private limited in the year 2010 and Nmart is brand name is a division of New look multi trade Private limited. The New look multi trade company initially established in Mumbai and registered in the Registrar Companies, Mumbai. On 03-06-2009 1^st  shopping mall was started like a super market at Surat.  Nmart scheme was started on 26-01-2010 by consulting  Bharat Handifrod who is having knowledge of making soft ware and they will came into contact with Samirdesh PandeHa,  I have introduced the scheme with the help of two persons.  In that scheme I have introduced a incentive that  if a person wants to join in the scheme he would have to  pay Rs. 5,500/- and gets broucher, Bond, 48 purchase coupons and two Registration forms will be sent to the member to enroll as a  member of Nmart retails Pvt. Limited.  In that scheme I have also introduced incentives  and Rewards to attract the customers more to  develop  the business.  There are as many as 16,50,000/- customers were joined as members  in my company after opening  of company till today and we have 287 mall shops and out them 146 are running in throughout India and the remaining are under construction and total Rs. 907 Crores of Rupees was collected from the customers.  I have given about 370 crores  of  rupees    as commission to our members and dependent business associates, around 170 crores was given  for rewards and around 300 crores of rupees purchase material was given through coupons, around 47 crores of rupees was sanctioned to the customers to attend credit facility.  Around 2 lakh members were joined in the company throughout Andhra Pradesh and collected 110 crores of advances from the customers.  About 60 crores of rupees was paid to the members as commission amount, Purchase brouchers, rewards.  New look airways was established in the year 2011 and one Mandar Barde and Hiren Diwani are the directors of the company, they have took Rs. 01,72,40,000/- loan from Nmart company to purchase helicopter on 17-08-2011 and the money was transferred from Axis Bank, Surat to New Look Airways Private limited, Mumbai.   I have also established a company by name and style of Nmart infrastructure, Surat in a building which is situated at Honeypark road, Dazzle Arcade, Surat and the company is  looking after the sale, purchase of lands and buildings. I am also the director of the Nmart infrastructure, Surat  company and Prathibha shekavath also one of the director of this company and after some time she had retired and now Salim Khan is looking after entire business and finance as per my directions. 

2^ND DAY

Date : 13-05-2013 at 10 A.M            

                                                                                         

                         Today I continued further examination on Gopal Mohan Singh Shekhawat in presence of above Mediators Mediators:-            Then I have given the following questionnaire to Shekhawat.

1)      Have you enrolled members from the area where there are no malls?

Ans : Yes, after enrolling 500 to 1000, we planned to establish malls.

2)      But if the voucher is generated, it is to be renewed within 30 days.  How can we except a member living at distant area all over come to mall and purchase. It was not mentioned in agreement that he can used after wards.

Ans : He can utilize the same balance voucher after establishment of mall.

3)      It was not mentioned in the agreement that he can use after wards.

Ans : I think it is also there in Agreement.

4)      After enrolling members after receipt of Rs. 5,500/- you are going to provide suit lengths worth Rs. 3,000/- to the members.

Ans : Yes.

5)      What if member is a woman?

Ans If they accept, we are giving suit length we are planning saris also.

6)      What is the purchasing cost of suit length?

Ans : We purchase from company and the cost of suit length is Rs. 1675/- and the other Rs. 300/- is for postal charges and Rs. 100/- for packing and handling charges and the remaining amount is with company.

7)      Who is the Franchiser of Nmart retails at Kandukur, Guntur and Vijayawada?

Ans : Mutcheli Umamaheswarao is the Franchiser of Kandukur Nmart retails shop. He had paid Rs. 5,00,000/-  to my company and opened a shopping mall in Kandukur. At Vijayawada no Franchiser to Nmart retails shop and Manager State operating head by name Shaffi has been operating the retails shop. At Guntur there is no Franchiser and Manager has been operation and I don’t know the name of the Manager.   

8)       What is the benefit the franchiser will get after joining as Franchiser of the company?

Ans :The franchiser will get 18% interest  till Franchisee is with him and 2% incentives basing on the turn over and his responsibility to maintain the administration of Nmart retail shops.

9)      What is number of customers in Kandukur Area and How much money was collected from the customers in Kandukur area?

Ans : There approximate 10,000 members were enrolled as members in Kandukur area and about Rs. 01,10,00,000/- was collected as Advance from the customers. We have giving 42 to 50% commissions.

10)  As per the auditor’s report the profit for the year 2010-2011 is                        Rs. 68,03,577-00 and during the year 2011-2012 the company get profit for Rs. 5.73 crores? Is it true or not?

Ans: Yes.

11)  In the auditor’s report, it was shown the amount sales through promotional scheme and other sales. What is meaning of the sales?

Ans : It is suit length and credit for Rs. 1500/- as per my knowledge.

12)  What is the total enrollment of members in your company through India?

Ans. 16,50,000 members and collected Rs. 907.50 lakhs Crores.

13)  During which period the deposits were collected?

Ans : 31 months from January, 2010 (upto August 2013).

14)  What the workable calculation is of provisions that to be supplied to the malls?

Ans: We purchase in wholesale price in average margine of 30-35% between sale and purchase.  If a person purchases Rs.1000/- from my shop and the original purchase cost is Rs.700+gift voucher Rs.220/-.  Rs. 80/- profit from the members only and the same price of cost will be sold to the other customers.

15)  What is the total enrollment of members in Andhra Pradesh?

Ans: 2,00,000 members are joined in the company and collected 110 crores of Rupees.

16)  How many shops were opened in Andhra Pradesh?

Ans : 14 shops are running ie., Vijayawada, Visakhapatnam, Kakinada, Thirupathi, Kandukur, Guntur, Hyderabad, Miriyalaguda, Medak and others  and 16 are under constructions.

17)   You think that the scheme will be maintainable in future, is there any difficulties faced by you. Before launching the scheme, you have to get permission from RBI according to the RBI rules?

Ans : It is not a deposit, recurring deposit, it is that membership enrolled scheme develop my retailed mall chain. As per my knowledge, there is no need to register in RBI.

18)  Your scheme is chain link system, you have proposed it as Multi Level marketing, and as per the provision of law this may comes under Prize chit fund money circulation act (Banning 1978)?

Ans : In the year 2003 one notification passed by the Govt. of India, consumer affairs that order copy is available with me. Those company selling in retails goods, materials by way of direct marketing, multilevel marketing.  Multi level and direct marketing in MLM (Multi level marketing) that company it will comes into Prize company chit fund act.

19)  Where did you have conducted meetings in Andhra Pradesh?

Ans : Myself I have conducted meetings in Hyderabad, Vijayawada, Thirupathi, Guntur, Kadapa, Kakinada, Visakhapatnam etc.

20)  Where did  the agents will collect the rewards and where they are purchasing?

Ans : Only in Big malls i.e., Vijayawada, Thirupathi, Hyderabad, Visakhapatnam etc.

21)  In the auditor’s report it was  shown that during the financial year 2010-2011 and 2011-12 Franchiser deposit as Rs. 06,25,84,378/- and                    Rs. 21,09,12,614-00 total Rs. 27,34,96,992/- respectively? This amount will add in the customers deposit. How my shops are functioning in India?

Ans : No, this amount was not added to customers deposit. Now the company has closed all the shops expect six at Surat, Meeraz of Maharastra, Chikodi of Karnata and Bhopal of Madhyapradesh and Howra of Kalacutta.

22)  How you have taken the company from Reena Dargar and how much amount paid to him?

Ans : When a New company would have been started, it may take 6 or 7 months time and I have paid Rs. 50,000/- to Reena Dargar.

23)   You have purchased helicopter from the profit of the company and from where it was purchased and the age of the helicopter?

24)  Ans : Yes I have purchased the helicopter from the profits in the year 2011 from one Genak owner of Chpper Robinson-III Helicopter.

25)  According to the auditor’s report in the year 2011 you have given advance amount for property W/Rs. 01,37,18,826/- to six properties? Did you purchase all these properties or not?

Ans : Yes, Out of 6 properties

(1)   I have given advance for shop in Surat i.e., from Ghambhir and paid Rs. 2,77,826/- as an advance but the Bank loan amount with the Goutham Gambhir in that property. Still is pending.

(2)   I have given Rs. 56,70,000/- for Kandavilli Flat No. 2405 (House for my residence) at Mumbai from Builder, Butwill of Mumbai and it was completed and it was registered in my name and my wife’s name.

(3)   I have given Rs. 25,88,000/- (Behind of Sona Hotel, Surat ) to buy simple apartment for my staff members  and it was registered in the name of either Salim Khan or in the name of the company.

(4)   I have purchased one Flat from Jayshreeben Mehta at Surat and paid an advance for Rs. 06,85,000/-  and it was sold it to another party for          1 lakh profit.

All the properties are purchased from the customers who enrolled in the company.

All the properties are in the name Nmart retails except Item No. 1 is in the name of myself through cheques. 

26)  According to the auditor’s report in the year 2012 you have given advance amount for property W/Rs. 08,80,10,480/- to Eleven properties? Did you purchase all these properties or not?

Ans : Yes, Out of 11 properties

(1)   Advance Ware House at Kuvarda nearby Ankleswar, Surat  from the farmers i.e., Chaghan Bhaipatel, Kuvarda : I have given Rs. 02,30,62,00/- as an advance, Part payment is yet to be given to the owner of the land.

(2)   East Africa Automotive Pvt., Near ONGC Colony, Surat Survey No. 15  belongs to Surekha Dilip Natwani : I have given Rs. 03,00,00,000/-as an advance. Only purchase contract was done, but the party is having dispute in the  court.  Hence, it is pending.

(3)   I have purchased one Plat from Prasanth Babu, Surat (open land) to an extent of approximately 500 – 1000 yards to a tune of Rs. 89,03,480/- as an advance.  The deal was cancelled since they have not given clear clarification.

(4)   I have purchased one Disha Mall, Aurangabad from one Dilip Parekh who is owner of the property) and paid Advance Rs. 25,00,000/- (Disha is the area and mall is meant by Nmart shop) and the mall cost is Rs. 01,00,00,000/- as an advance and it is under process.

(5)   I have purchased Rainbow Flying Club Pvt. Limited, Surat belongs to Captain Nayum and Bharatsing who are owners of the Rainbow flying club and  paid Rs. 10,00,000/- as an advance which is situated near Airport. The deal was cancelled.

(6)   I have purchased a Ready shop for establishing a Restaurant by name Swastic House (Ground floor and basement)  and Purchased the same  to a tune of Rs. 06,00,00,000/- and got registered the same from Mr. Anil Patel and Bharat Singh  to an extent of 12000 sq. feet

(7)   I have given Rs. 8,00,000/- to Unit Publication advertising agency. I am not remember that one.

(8)   I have given Rs. 51,52,000/- as advance to one Surya complex flat but the deal was cancelled as the plot is sold away to another party and thus I have reback my amount from the  concerned.

(9)   I have given advance Rs. 56,70,000/- to purchase a small Office located in Andheri Mumbai that payment was done from IC IC Bank, Surat and the building is under construction.

                                                                                                                       All the properties are in the name Nmart retails except Item No. 1 is in the name of myself through cheques. 

27)  Who is Pratibha Ben Shekhavat?

Ans: My wife.

28)  Your wife had taken loan for Rs. 3,46,71,452/- as loan amount? For what purpose?

Ans : To purchase properties in Surat and somewhere?

29)  Yourwife had also taken Rs. 18,96,578/- for what purpose?

Ans : I don’t know.

30)  You have launched a loyalty bonus of above minimum Rs. 11,000/- after completion of 48 months or above? Is it possible to repay the amount to all customers after completion of 48 months?

Ans : Yes, it is possible.  I have make one agreement between customer and company with conditions that every customer has purchase of Rs. 72,000/-.  Then they are liable to take the Loyalty bonus.

31)  How it is possible?

Ans : Because if I have sold my goods for Rs. 72,000/- to any customer then my profit is about 35%.

32)  What are the value of properties you are owning?

Ans : About 80 to 90 crores.

33)  Is the fast growth company was possible due to obtain deposits from customers and investing the same in the business?

Ans :Yes.

34)  From Kandukur who are beneficiaries of your scheme and also who took active part in joining New customers?

Ans : 1) Kareti Venkateswarlu 2) Challa Srinivas  3) M. Umamaheswarao.

3^RD DAY

Date : 14-05-2013     

            My advocate at Bombay is Ashok Sarovgi.  After getting transit bail there, the advocate misled me.  He asked me not go to court to appear.  But he could not get any bail from court.  After wards I stayed along with my family at Bombay in my flat – 2405, Vishnu Shivam apartment, Tagoore Village, Kandivalli East , Bombay for about 1 ½ month.  I went to Rajasthan and stayed in Jaipur in my friend Sunil Bhatwara’s farm house.  It is situated at Trunk road.  My friend is a diamond merchant.  During my stay at Jaipur my wife, children, mother, younger brother were with me.  I stayed there for 2 to 3 months and after wards came back to Surat for getting treatment to my wife.  

                        In some cases I could get bail, but in all the cases of Prakasam district all bails were cancelled.  I fed up with my Bombay advocate.   To give moral support to my wife I decided to stay back at Surat.  I also asked my staff to continue malls without scheme because scheme is not permitted by law as it is nothing but money circulation. 

                        The editor Manoj Mistry of Gujarat Guardian , news daily is my friend.  I also gave ads to that paper.  About 20 lakhs amount was paid to that paper.  At the time of cricket matches for advertisement, I arranged 2 to 3 ad boards twice in ground.  For that he paid 2 to 3 lakhs for each board to Rajesh Bai Desai of Simphony ad agency, Surat. 

                        N Mart marketing and enrolment business started in 2010 January.  Before 2010 the total worth of my property was about 25 cores.  Now it would be about 80 to 90 cores.  All this I got through N Mart Business.

Thieves want legitimization of their racketeering

THIS IS THE LETTER ADDRESSED TO THE RACKETEERS ALL OVER COUNTRY TO ASSEMBLE AND BRING PRESSURE ON THE GOVERNMENT FOR LEGITIMIZATION OF THE RACKETEERING. THESE RACKETEERS HAVE BEEN BRAZENLY ASKING THE GOVERNMENT TO SHIELD THEM.
NEXT TIME, THE BURGLARS ALSO FORM AN ASSOCIATION AND DEMAND THAT THE POLICE SHOULD NOT CATCH THEM AFTER THEY BURGLED THE HOUSES.
THIS IS THE STATE OF AFFAIRS IN INDIA.

	Dear Sir(s), As you are aware that Direct Selling Distributors Welfare Association (DSDWA) was launched as FDSA affiliate to strengthen our struggle and to provide a shield to all Direct Selling Distributors (DSDs). Enrollment of DSDs in DSDWA is another major task of DSDWA for strength demonstration. We are pleased to announce that DSDWA has started the job and data has started pouring in. All information is available on www.dsdwa.org Recently we are finding lot of turbulence in Bengal which is likely to hit us very badly, if we do not act swiftly. The government is not able to segregate the genuine direct sale from such schemes. As we have seen many a times (sic), the government looks at us in the outfit of schemes. On 24th April 2013 Mr. Sachin Pilot submitted a list of illegal MLM schemes. Please go through the link http://fdsaindia.org/pdf/Pilot-submits-list-of-illegal-MLM-schemes-BusinessLine.pdfonly to find that none of these companies are MLM or Direct Selling Companies but are being referred to as MLM. We are in danger zone today. We would appreciate if you and your key leaders visit the link http://fdsaindia.org/media.aspx and become aware of the alarming situation. We have been raising our voice at many a forums.(sic) Finding meek response from the authorities and discriminative (sic) attitude towards Indian companies we are left with no option but to demonstrate our strength. DSDWA has declared a gathering of DSDs at Jantar Mantar on May 7, 2013 as announced in www.dsdwa.org This is a take off stage of our mission and has to see foolproof success for Industry’s survival. Your physical presence is mandatory to participate our first & historical public gathering, and be responsible to propagate about this gathering and bring as many as possible to make this event a big successful. I personally appeal for your support in this mass gathering. Please make sure to be present on 7 th May 2013 – Tuesday 10 AM to 5 PM. Surendra Vats President

Sachin Pilot's MLM companies list does not include Amway India

Union Minister of State for Corporate Affairs Sachin Pilot submitted the list of MLM firms illegally operating in the country. However, he did not mention the name of M/s Amway India Enterprises though the Andhra Pradesh High Court squarely held that the business model of Amway India is nothing but a money circulation scheme under provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. 

4/24/13 www.thehindubusinessline.com/industry-and-economy/pilot-submits-list-of-illegal-mlm-schemes/article4647537.ece?css=print 1/4
Sachin Pilot submits list of illegal MLM schemes
Our Bureau
April 23, 2013: The Union Minister of State for Corporate affairs on March 14, 2013 presented to Lok Sabha a state-wise list of companies against which complaints were received for indulging in Ponzi/ MLM (multi-level marketing) schemes. Pilot was responding to queries raised by D B Chandre Gowda and Adhi Sankar.

WEST BENGAL
(1) M/s. Vibgyour Allied Infrastructure Ltd.
(2) M/s. Rose Valley Real Estates Constructions Ltd.
(3) M/s. Rose Valley Industries Ltd.
(4) M/s. Silver Valley Communications Ltd.
(5) M/s. Rose Valley Food Beverage Ltd.
(6) M/s. Rose Valley Marketing India Ltd.
(7) M/s. Rose Valley Infotech Pvt. Ltd.
(8) M/s. Rose Valley Hotels and Entertainments Ltd.
(9) M/s. Rose Valley Projects Ltd.
(10) M/s. Rose Valley Patrika Ltd.
(11) M/s. Rose Valley Films Ltd.
(12) M/s. Modern Investment Traders Pvt. Ltd.
(13) M/s. Rose Valley Travels Pvt. Ltd.
(14) M/s. Brand Value Communications Ltd.
(15) M/s. Rose Valley Housing Development Finance Corporation Ltd.
(16) M/s. Rose Valley Airlines Ltd.
(17) M/s. Rose Valley Fashions Ltd.
(18) M/s. Rupasi Bangla Projects India Ltd.
(19) M/s. Rupasi Bangla media and Entertainments Ltd.
(20) M/s. Rose Valley Realcom Ltd.
(21) M/s. Saradha Realty India Ltd.
(22) M/s. RTC Properties India Ltd.
(23) M/s. RTC Real Trade India Ltd.
(24) M/s. Jasoda Real Estate Ltd.
(25) M/s. Saradha Printing & Publication Pvt. Ltd.
(26) M/s. Saradha Agro Development Ltd.
(27) M/s. Saradha Biogas Production Pvt. Ltd.
(28) M/s. Saradha Tour and Travels Pvt. Ltd.
(29) M/s. Saradha Automobiles India Ltd.
(30) M/s. Saradha Constructions Company Pvt. Ltd.
(31) M/s. Saradha Shopping Mall Pvt. Ltd.
(32) M/s. Saradha Education Enterprise Ltd.
(33) M/s. Saradha Exports Ltd.
(34) M/s. Goldmine Agro Ltd.
(35) M/s. Tower Infotech Pvt. Ltd.
(36) M/s. Chakra Infrastructure Ltd.
(37) M/s. Gold Field Agro Ltd.
(38) M/s. Golden Life Agro India Ltd.
(39) M/s. Golden Pariwar Holding and Developers India Ltd.
(40) M/s. Goldmine Food Products Ltd.
(41) M/s. Hallo India Express Sales Ltd.
(42) M/s. Happy Life Realty (India) Ltd.
(43) M/s. ICore E-Service Ltd.
(44) M/s. MPS Aqua Marine Products Ltd.
(45) M/s. MPS Greenery Developers Ltd.
(46) M/s. MPS Industries & Agro Research Ltd.
(47) M/s. MPS Resorts and Hotels Ltd.
(48) M/s. Prayag Agrotech Pvt. Ltd.
(49) M/s. Prayag Infotech Hi-Rise Ltd.
(50) M/s. Prayag Infra Realtors Ltd.
(51) M/s. Prayag Micro Finance
(52) M/s. Rahul Heights Ltd.
(53) M/s. Rahul Hi-Rise Ltd.
(54) M/s. Ramel Industries Ltd.
(55) M/s. Shine India Agro Industries Ltd.
(56) M/s. Silicon Projects India Ltd.
(57) M/s. Sunshine Agro-Infra Ltd.
(58) M/s. Sunshine India Land Developers Ltd.
(59) M/s. URO Agro India Ltd.
(60) M/s. URO Autotech Ltd.
(61) M/s. URO Hotels and Resorts India Ltd.
(62) M/s. URO Hygenic Goods Ltd.
(63) M/s. URO Infotech Ltd.
(64) M/s. URO Infra Realty India Ltd.
(65) M/s. URO Life Care Ltd.
(66) M/s. URO Trexim Ltd.
(67) M/s. URO Walkers Ltd.
(68) M/s. Vasundhara Realcon Ltd.
(69) M/s. Vibgyor Allied Industries Ltd.
(70) M/s. Vishwamitra India Consultancy Services Ltd.
(71) M/s. Vishwamitra India Multi-Developers Ltd.
(72) M/s. Waris Hospital & Diagnostic Centre Ltd. (Now Waris Healthcare Ltd.)
(73) M/s. Waris Telecom Services Ltd. (Waris Tel International Ltd.)

RAJASTHAN
(1) M/s. PACL (India) Ltd.
(2) M/s. Goldsukh Trade India Ltd.

TAMIL NADU
(1) M/s Unipay 2U Marketing Pvt. Ltd.
(2) M/s Unipay Creative Business Pvt. Ltd.
(3) M/s Unipay 2U Production Pvt. Ltd.
(4) M/s. Goldquest International Pvt. Ltd.
(5) M/s. Questnet Enterprises India Pvt. Ltd.

KARNATAKA
(1) M/s Unigateway 2U Trading Pvt. Ltd.

DELHI
(1) M/s Speakasia Online Pte. (Unregistered)
(2) M/s. Basil International Ltd.
(3) M/s. Vamshi Chemicals Ltd.
(4) M/s. Appeline Cosmetics & Toiletries Ltd.
(5) M/s. Basil Express Ltd.
UTTAR PRADESH
(1) M/s. Nixcil Pharmaceuticals Specialties Ltd.

COURTESY BUSINESSLINE

Police seek custody of Gopal Shekhawat

The police of various districts where criminal cases were filed against Gopal Mohan Singh Shekhawat, the kingpin in the multi-crore scam of NMart aka New Look Retails Ltd, are seeking his custody for his interrogation. They, it seems, wanted to know as to how much money he has illegally collected from public and where did he stash the cash apart from spending on luxurious cars and a helicopter. 
Already Prakasam district police filed a petition for his custody. They may question the accused for at least three days if not a week. The Visakhapatnam police have also filed a petition for the custody of multi-crore scamster to grill him about the details of the scam.
Guntur DSP (Crime) Ravindra Babu said that they are going to file the custody petition to interrogate the accused. 
Chilakaluripet police are also ready for filing a petition seeking the custody of the accused.
However, one has to wait and watch how many more police would seek custody of the NMart chief, prime accused in the multi-crore scam.
There is already a criminal case in Kerala and the Kerala police may also want to question the accused.
Three criminal cases were filed in Aurangabad, Maharashtra, and they may also ask for custody of Gopal Shekhawat. 
Meanwhile, the CID is also preparing the list of criminal cases against the accused.
It is worth to note here, that the counsels of NMart kingpin filed a writ petition in the AP High Court soon after Prakasam district police filed the FIR against the company seeking the transfer of the case to the CID of AP. 
The motive behind the petition is well known. However, before the AP High Court heard the petition, the counsel of NMart had withdrawn the petition with the plea to submit once again. However, the NMart counsel never submitted the writ petition again in the high court.

NMART ACCUSED BROUGHT TO ONGOLE

·         Rs. 662 crore scam unearthed by Prakasam SP

Superintendent of Police Dr Kolli Raghuram Reddy here on Thursday presented Gopal Mohan Singh Shekhawat, accused in the multi-crore scam before the media.

Addressing the media, the SP said that the accused indulged in illegal money circulation scheme and collected deposits violating the provisions of AP Protection of Depositors of Financial Establishments Act, 1999.

Elaborating on the modus operandi of the accused, the SP said that Gopal Shekhawat through his company New Look Retails Pvt Ltd, collected Rs. 662 crore from 12,02,762 depositors at the rate of Rs. 5500 from each person violating the provisions of the RBI Act, 1934.

The accused gave 48 vouchers each worth Rs. 220 to encashed in the next 48 months. He also offered attractive incentives and gifts to the members.

Following a complaint lodged by a civil society organization Corporate Frauds Watch, the Kandukuru police registered a criminal case and started investigation.

The SP said that though the Kandukuru police arrested Gopal Shekhawat on August 28, 2012, the accused managed to get bail in Mumbai on the promise that he would present himself in the Ongole court on September 1, 2012. However, he jumped the bail and since then he was absconding.

In the meanwhile, the accused secured anticipatory bail from Ongole court in November, 2012, but the Andhra Pradesh High Court cancelled the anticipatory bail paving way for the arrest of the accused, he said.

The Kandukuru and Chirala police earlier arrested the other directors of the company and were sent to judicial custody.

The relentless pursuit of the accused resulted in his arrest, he said and announced rewards to Kandukuru DSP Ashok Kumar, CIs Rayapati Srinivas Rao and Venkateswara Rao and SI Bhaktavatsala Reddy.

The police seized Rs. 50 crore worth property of the accused along with two cars – Rolls Royce and Mercedes Benz – and a helicopter all worth Rs. 10 crore. The police requested the Bank authorities concerned to freeze the accounts of the accused in which there is Rs. 2.19 crore.

The SP said that the accused is also facing several criminal cases filed against him in Guntur, Chilakaluripet, Chirala, Vijayawada, Visakhapatnam and Medak in the State and Kozhikode in Kerala.