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)
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)
2 comments:
The really shameful thing in all of this, is that William S. Pinckney has not been getting all the profits generated by the 'Amway' racket in India. He is, however, one of the obedient, but expendable, little corporate stooges who is being held to account whilst his billionaire masters are allowed to continue to thieve elsewhere.
For decades, all around the globe, a large portion of the multi-billion dollar profits on the 'Amway' pyramid scam and the related advanced fee frauds (a.k.a. 'tool scams') have been shipped back to the DeVos and VanAndel clans, and their criminal associates, in the USA.
Indeed, piles of cash stolen from millions of Indian citizens has already found its way into the bulging pockets of all manner of corrupt individuals in the USA, who have been paid to obstruct investigation of the profitable 'MLM income opportunity' racket in general, and the 'Amway' version, in particular.
From the shattered look on his face when he was arrested for fraud, it's doubtful whether William S. Pinckney fully-understands the staggering scale of what he's really been involved in.
Since 'Amway India Enterprises' acted as the corporate 'Trojan Horse' to pave the way for various strains of the voracious 'MLM income opportunity' cancer to eat their way into the heart of rebublic of India (and right under the noses of conveniently blind, and/or corrupt, trade officials and their political masters), it's possible that Mr. Pinckney and his fellow, obedient, but expendable, little corporate stooges might soon be facing even more serious charges.
David Brear (copyright 2013)
Amway is not ethical, cheating people for money, its products are useless because i used it. India must ban Amway.
Post a Comment