Tuesday, 2 July 2013

Amway India’s chain scheme is illegal: SP


http://www.thehansindia.com/

Showry
Ongole: Superintendent of Police Dr Kolli Raghuram Reddy asserted here on Saturday that Amway India’s business model is illegal and warned people not to fall prey to the easy and quick schemes extended by various companies in the guise of selling products and services.
In an interview with the Hans India, the SP said that the people who join in such schemes and make others join in such schemes are also liable for prosecution.
Pointing out that one of such companies which is offering easy and quick money to people is Amway India Enterprises, the SP recalled that the Division Bench of Andhra Pradesh High Court in unambiguous terms held that the business model of Amway India is illegal after hearing at length the arguments from both sides.
The print media or electronic media should not publish the advertisements of such companies and the Government has powers to attach the properties of such publications, he remarked.
The State government has issued an order in 2008 not to publish the advertisements of Amway India holding it as an illegal company, he added.
Countered the recent propaganda by Amway India that the officials have been making false statements against the business model of Amway Indi, he said that this amounted to contempt of court as already the Andhra Pradesh High Court held its business model illegal. Later, the Supreme Court also upheld that AP High Court judgment, he pointed out.
The SP said that everyone who was involved in the operations of Amway India is liable for prosecution.
He warned the people to beware of the chain schemes which have been cheating people in large numbers. “People who lose money in such schemes are also liable for prosecution since the Prize Chits and Money Circulation Schemes (Banning) Act clearly says that joining and making others join in such schemes is a crime,” he said.
The SP pointed out that already a criminal case is pending investigation in the Two Town police station in the town. “The Amway India has been casting aspersions against the police officers instead of complying with the court orders,” he said.

23 comments:

David Brear said...

In order to avoid being held to account, the billionaire bosses of the 'Amway' mob, and their propagandists, have sought to control the thinking of their adherents, and all casual observers, by constantly repeating reality-inverting key-words and phrases.

Technically, this is known as Neuro-Linguistic Programming or NLP.

For decades, in countless 'Amway' copy-cat 'Income Opportunity' rackets, top of the NLP list of key-words, has been: 'Business'

Although I understand what Dr Kolli Raghuram Reddy meant when he used the phrase:

'Amway India's business model is illegal,'

what the racketeers behind 'Amway' have actually been doing, cannot be described as 'business' in the traditional sense of the word.

To avoid confusion, perhaps the more-accurate phrase:

'Amway India's so-called, or counterfeit, business model is illegal,'

should be be employed.


David Brear (copyright 2013)

Anonymous said...

?!

Anonymous said...

Dear shyam.....!!!
I would like to ask u some details of latest concept which was undertaken by Mizoram state government. Mizoram Direct Marketing Limited is a network marketing company prelaunched on 26th of june and its website and concern persons are telling it is totally works through Mizoram government and its body members are recruited IAS n IPS. they too tell that its completely legal bcoz 1978 act says that if any government or its organization starts such schemes is legal.
now it is going to create new era..b4 it ur suggestions are very valuable to the marketing persons. Then the marketing persons choose whether they want to join or not such schemes.... thanking you ......deepu

Anonymous said...

11. Act not to apply to certain prize chits or money circulation schemes. Nothing contained in this Act shall apply to any prize chit or money circulation scheme promoted by-
(a) a State Government or any officer or authority on its behalf; or
(b) a company wholly owned by a State Government which does not carry on any business other than the conducting of a prize chit or money circulation scheme whether it is in the nature of a conventional chit or otherwise; or
(c) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 , (2 of 1949 .) or a banking institution notified by the Central Government under section 51 of that Act or the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 , (23 of 1955 .) or a subsidiary bank constituted under section 3 of the State Bank of India (Subsidiary Banks) Act, 1959 , (38 of 1959 .) or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 , (5 of 1970 .) or a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 , (21 of 1976 .) or a co- operative bank as defined in clause (bii) of section 2 of the Reserve Bank of India Act, 1934 ; (2 of 1934 ); or
(d) any charitable or educational institution notified in this behalf by the State Government, in consultation with the Reserve Bank.


BASED ON ABOVE PRIZE CHITS BANNING ACT RULE MIZO GOVERNAMENT STARTED MLM CONCEPT.If state govt start prize chits or money circualtion scheme this 1978 banning act is not applicable.But people said RMP Management asked mizo govt start this,entire RMP team joined.RMP Business is nt running due to cases.now they planned this.All RMP leaders involved.

FDSA(Federation of direct selling asscoation) involved in Mizodirect mlm.FDSA board promoting the mizoram state mlm.

Please tell is it legal in ap or india?can state govt start the money circulation or mlm schemes?please tell us.several persons depends on this.

Study the website

http://mizodirect.mizoram.gov.in/

www.prelaunchposition.com

And give ur opinion.

Anonymous said...

It is understood that Sri. Shyam Sundar is fighting neither a company nor people but he legally opposing the concept of a few people make money by exploiting thousands of people.

Manoj
Kerala.

anudeep said...

Dear shyam! kindly go through the latest concept which was undertaken by Mizoram state government. Mizoram Direct Marketing Limited is a network marketing company, concern persons are telling it is totally works through Mizoram government and its body members are recruited IAS n IPS. they too tell that its completely legal bcoz 1978 act says that if any government or its organization starts such schemes is legal.
now it is going to create new era..b4 it ur suggestions are very valuable to the marketing persons. Then the marketing persons choose whether they want to join or not such schemes.... thanking you ......deepu
Thursday, July 04, 2013 1:09:00 pm

Anonymous said...
11. Act not to apply to certain prize chits or money circulation schemes. Nothing contained in this Act shall apply to any prize chit or money circulation scheme promoted by-
(a) a State Government or any officer or authority on its behalf; or
(b) a company wholly owned by a State Government which does not carry on any business other than the conducting of a prize chit or money circulation scheme whether it is in the nature of a conventional chit or otherwise; or
(c) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 , (2 of 1949 .) or a banking institution notified by the Central Government under section 51 of that Act or the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 , (23 of 1955 .) or a subsidiary bank constituted under section 3 of the State Bank of India (Subsidiary Banks) Act, 1959 , (38 of 1959 .) or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 , (5 of 1970 .) or a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 , (21 of 1976 .) or a co- operative bank as defined in clause (bii) of section 2 of the Reserve Bank of India Act, 1934 ; (2 of 1934 ); or
(d) any charitable or educational institution notified in this behalf by the State Government, in consultation with the Reserve Bank.


BASED ON ABOVE PRIZE CHITS BANNING ACT RULE MIZO GOVERNAMENT STARTED MLM CONCEPT.If state govt start prize chits or money circualtion scheme this 1978 banning act is not applicable.But people said RMP Management asked mizo govt start this,entire RMP team joined.RMP Business is nt running due to cases.now they planned this.All RMP leaders involved.

FDSA(Federation of direct selling asscoation) involved in Mizodirect mlm.FDSA board promoting the mizoram state mlm.

Please tell is it legal in ap or india?can state govt start the money circulation or mlm schemes?please tell us.several persons depends on this.

Study the website

http://mizodirect.mizoram.gov.in/

www.prelaunchposition.com
let us know whether it z legal r not in either AP or India

NSB Naidu said...


Dear shyam! kindly go through the latest concept which was undertaken by Mizoram state government. Mizoram Direct Marketing Limited is a network marketing company, concern persons are telling it is totally works through Mizoram government and its body members are recruited IAS n IPS. they too tell that its completely legal bcoz 1978 act says that if any government or its organization starts such schemes is legal.
now it is going to create new era..b4 it ur suggestions are very valuable to the marketing persons. Then the marketing persons choose whether they want to join or not such schemes....
1978 acts says......(MDML gave us a printed paper n it says)
11. Act not to apply to certain prize chits or money circulation schemes. Nothing contained in this Act shall apply to any prize chit or money circulation scheme promoted by-
(a) a State Government or any officer or authority on its behalf; or
(b) a company wholly owned by a State Government which does not carry on any business other than the conducting of a prize chit or money circulation scheme whether it is in the nature of a conventional chit or otherwise; or
(c) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 , (2 of 1949 .) or a banking institution notified by the Central Government under section 51 of that Act or the State Bank of India constituted under section 3 of the State Bank of India Act, 1955 , (23 of 1955 .) or a subsidiary bank constituted under section 3 of the State Bank of India (Subsidiary Banks) Act, 1959 , (38 of 1959 .) or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 , (5 of 1970 .) or a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 , (21 of 1976 .) or a co- operative bank as defined in clause (bii) of section 2 of the Reserve Bank of India Act, 1934 ; (2 of 1934 ); or
(d) any charitable or educational institution notified in this behalf by the State Government, in consultation with the Reserve Bank.


BASED ON ABOVE PRIZE CHITS BANNING ACT RULE MIZO GOVERNAMENT STARTED MLM CONCEPT.If state govt start prize chits or money circualtion scheme this 1978 banning act is not applicable.But people said RMP Management asked mizo govt start this,entire RMP team joined.RMP Business is nt running due to cases.now they planned this.All RMP leaders involved.

FDSA(Federation of direct selling asscoation) involved in Mizodirect mlm.FDSA board promoting the mizoram state mlm.

Please tell is it legal in ap or india?can state govt start the money circulation or mlm schemes?please tell us.several persons depends on this.

Study the website

http://mizodirect.mizoram.gov.in/

www.prelaunchposition.com
let us know whether it z legal r not in either AP or India

Anonymous said...

As per news coming from RMP Leaders mizodirect started by mizoram govt as per directions by RMP leaders.SP Raghuramireddy arrested RMP directors i ongole few months back.After that their business came down.Now they planned this and asked mizo govt to start and said mizo govt get big income through this mlm.Mizo govt believed and started.RMP leaders structure feeding in www.prelaunch position.com.On 18th mizoram cm opening the company in kolkata.

Money circulation banning act 1978 is nt applicable to this mizodirect company?

But andhrapradesh prize chits bann ingact 1965 applicable to this if they promote in ap?

Can govt start mlm.if so all govt can start mlms/direct selling??

FDSA(federation of direct selling association) president says to public he is hon: director to mizodirect.several people believing and promoting the mizodirect.

RMP MD jain saying they got all backend suupport and management run by RMP??RMP leaders saying.

so pls give ur opinion.some networkers want to promote it.if it genuine or is it also illegal??

Shyam Sundar said...

Wh don't you people join hands and file a criminal case against the Mizodirect or at least take the matter to the notice to the Mizo government.

Anonymous said...

Mizo govt itself started.And mizo covt cm will be launched direct selling company and concept on 18th july in kolakata.Then how can u say to complain to mizo govt???AP govt has to tell or indian govt has to tell about mizo govt activities.Why dont u say u to the govt authorities about this?

krishna said...

r u afraiding now mr shyam?Tell ur opinion on mizodirect selling company.do u have any thing to do with govt.if u really said ur against mlm then take on mizodirect.Not only on prive companies.we will see wt will ur reaction on mizodirect launching

krishna said...

NMART-MIZO DIRECT r same

N mart 5500/- gave vouchers and have to purchase products from their stores in selected places.rural people cant buy in n mart.Mizo direct also 5000 for 10 vouchers.And people have to purchase products in selected stores.Both r same.But n mart is a private company and mizo direct is govt company.

Now Mr.shyam u filed case on N MART u said it is money circulation and police arrested nmart md.same mlm plan introducing by govt of mizoram.what will u do???? will u have dare to complain on mizodirect? u gave legal notice to sachin pilot for supporting amway?wht u say on mizodirect??if u cant take any thing on mizodirect issue that seems ur fighting on small fishes and private companies only not on big fish??or tell mizodirect is legal company then people will follow the company.let s see ur action on this topic.

Murali said...

Shyam garu just check some points on mizodirect.

As per 1978 money circualtion banning act state govt can start prize chits.it is legal.BUT IT IS LEGAL IN THE HOME STATE ONLY.NOT IN OTHER STATES.So AP govt booked cases on amway and other mlm companies.AP police said mlm/money circulation ban in AP.So now mizo direct marketing also illegal as per ap state money circulation law.

Mizoram govt started lotteries which it is legal in the state.But illegal in AP.Law can change state to state.MLM law has to implement by central govt.Otherwise one issue is legal in one state and illegal in other state.

Now u take these points and create awareness on mizodirect.

Anonymous said...

First time shyam have no voice on one mlm company.All these days he is telling all mlm are illegal.But now since from few days people are asking him about mizodirect.But he dont have any answer on that.change in mind or is he accepted that mlm is legal.Bec of mizo direct govt mlm company.If nt why he is silent.if he continue his silence people will believe he cant do much on govt company.so he has to accept mlm is genuine.or he has to tell his opinion on mizodirect is legal or illegal in ap and india.

Anonymous said...

Good evening everyone who follow the shyam's articles through this site. I should tell everyone a truth of mr. Shyam. Generally shyam sundar always says that he is the one and only man on the earth to serve the people not to deceived by the network companies and he is the man to aware the people not to lose money. dear friends you know very well that these are the shyam's words generalyy........Today many of members are asking shyam that atlest whether the mizo direct marketing ltd is legal or illegal to join it. but shyam never reply to it becoz he does not want to aware the people. if he tell anything at starting of the concept, does he have any profit....no....so please avoid to ask him about mizo direct markt ltd. Here we have to remember onething that all are saying he is the blackmailer of network marketing companies. You say is it right or wrong?....ok... think.. if he speaks anything at this point of time he does not have any use and he waits until the people join and start work.. when the company grows up then our champ enters and demands the company in his own way. Now you tore ur cloths and shouts about mizo means no use.
He needs that people should join and promote the business
He needs people should develop the company
He no need the problems of people...he needs the problems should raise in middle
He needs money through his black mailing way
So he waits until the people should suffer
Then the great sundar purush will come to tell the morals
until then he calms quite
My dear sundar purush nevel tell the words for people in ur way
Finally asking you...not for me...no need to tell for me...but many of marketing persons donot know the law... they are waiting for guidelines from such you type of persons.
requesting you to reveal the truth whether the mizo company is legal r illegal....good day

MALLAPPA RAJU said...

http://mlmclue.com/Newspage.aspx?lblid=350

NEED REGULATIONS TO SAFEGUARD GENUINE MLM COMPANIES-FINANCE MINISTER

NEW DELHI:THE FINANCE MINISTER SAID THAT IT WAS PRESENTLY POSSIBLE FOR THE COMPANIES TO SET UP THEIR ILLICIT INVESTMENT SCHEMES IN SUCH AS WAY SO THAT THEY CAN AVOID OVERSIGHT BY EITHER OF THE REGULATORS OR THE GOVERNMENT DEPARTMENTS.

TALKING ABOUT MULTI-LEVEL MARKETING COMPANIES AND THE CASES LIKE AMWAY, MR CHIDAMBARAM SAID CHANGES ARE ALSO REQUIRED IN THE REGULATIONS TO SAFEGUARD THE INTEREST OF GENUINE COMPANIES.

“THE LAW PERHAPS REQUIRES TO BE AMENDED TO PROVIDE FOR THE GENUINE MULTI LEVEL MARKETING WHICH DO NOT FALL WUNDER THE DEFINITION OF ILLEGAL MONEY CIRCULATION,” HE SAID ON THE CASE INVOLVING ARREST OF AMWAY INDIA'S CHAIRMAN AND TWO DIRECTORS IN KERALA.

“UNDER THE PREVAILING LAW, CERTAIN MULTI-LEVEL MARKETING SCHEMES CAN BE TAKEN AS TO BE ILLEGAL. SO, IT IS POSSIBLE THAT THE STATE POLICE TOOK THE VIEW ~ I AM NOT SAYING WHETHER IT'S CORRECT OR NOT ~ THAT WHAT THE COMPANY WAS DOING WAS ILLEGAL UNDER THE PRESENT LAW AS INTERPRETED BY THE COURT.” MR CHIDAMBARAM FURTHER SAID THE ARREST WAS PROBABLY “A BIT OVER THE TOP” AS HE WAS NOT RUNNING AWAY AND THE POLICE COULD HAVE FILED AN FIR AND INVESTIGATED THE MATTER.

“THESE ARE REGULATORY GAPS AND WHAT WE ARE TRYING TO DO IS TO REDUCE THESE GAPS TO MAXIMUM POSSIBLE EXTENT, SO THAT EVERYONE FALLS EITHER UNDER THE RESERVE BANK OF INDIA (RBI), OR SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI), OR THE REGISTRAR OF CHITS OR UNDER THE STATE GOVERNMENT, ETC,” HE SAID. THE COMMENTS COME IN THE WAKE OF WIDE-RANGING AMENDMENTS PROPOSED BY THE GOVERNMENT TO THE SEBI ACT AND OTHER REGULATIONS TO GIVE THE CAPITAL MARKETS REGULATOR GREATER POWERS TO DEAL WITH VARIOUS KINDS OF INVESTMENT SCHEMES.

MALLAPPA RAJU said...

http://mlmclue.com/Newspage.aspx?lblid=345
Dated 08th July 2013.
Fin ministry for changes in prize chits & money circulation Act


New Delhi:The department of financial services has proposed amending the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 to make inducement to persons for joining multi-level marketing, pyramid, Ponzi or collective investment schemes an offence to plug loopholes in money churning activities of companies.

The department under the finance ministry has proposed to insert a new section 3A in the Act through an amendment Bill for this purpose.

The existing provisions of the Act ban various fraudulent schemes and any person violating the provision is liable to be prosecuted and punished. However, it is possible that promoters of a fraudulent fund could take up a stand that the scheme is of a business entity and that they are mere employees, who are not responsible for the acts of the entity.

To plug this loophole, the new section will ensure that persons who are promoters in such schemes are individually prosecuted and punished if they fraudulently or dishonestly induce persons to subscribe to or participate in such schemes.

Besides Chits Act and Sebi Act, these schemes are currently covered under the RBI Act, 1934, the Companies Act, 1956, and state laws for protection of interest of depositors in the financial establishment.

THE CHITS ACT COVERS PRIZE CHITS AND MONEY CIRCULATION SCHEMES, BUT THERE IS NO SPECIFIC REFERENCE TO MULTI-LEVEL MARKETING SCHEMES FOR GOODS AND SERVICES IN THE ACT.

There are certain business entities, which launch schemes for appointing selling agents for their goods and collect registration fees from them with a further requirement that such agents have to appoint more agents collecting registration fees from them. The remuneration paid to the selling agents consists of a share in the registration fees collected from the new selling agents joining the scheme. Such schemes are known as pyramid, Ponzi or multi-level marketing schemes.

Vidyashree B said...

Mr. Sachin Pilot was considered as less matured & was served with legal notice. Mr. Mallappa Raju's comments reveals Matured Hon. F.M. Chidambaram also asserted "genuine MLM companies"

Anonymous said...

pls tell ur opinion shyam garu on mizodirect.several people asking us to join.if u say yes we do or we stop now.pls tell anything on mizodirect of mizoram governamaent mlm.

ajay dwivedi said...

N mart 5500/- gave vouchers and have to purchase products from their stores in selected places.rural people cant buy in n mart.Mizo direct also 5000 for 10 vouchers.And people have to purchase products in selected stores.Both r same.But n mart is a private company and mizo direct is govt company.

Now Mr.shyam u filed case on N MART u said it is money circulation and police arrested nmart md.same mlm plan introducing by govt of mizoram.what will u do???? will u have dare to complain on mizodirect? u gave legal notice to sachin pilot for supporting amway?wht u say on mizodirect??if u cant take any thing on mizodirect issue that seems ur fighting on small fishes and private companies only not on big fish??or tell mizodirect is legal company then people will follow the company.let s see ur action on this topic.

Anonymous said...

There is another Company currently active in Pune by the name QNET.
They are also promising money for recruiting new members.

Shyam,
What we can do to stop such companies from luring people?

Chasity said...

Great!

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