Beware! Amway to hire one lakh more victims all over India

Amway India Enterprises's managing director and CEO William S Pinckney at a media meet at Chennai announced that AmwayIndia Enterprises is going to add one lakh more distributors to its large fleet of 15 lakh distributors. However, he fails to mentions how many of the 15 lakh distributors are active and actually doing business. The statistics say that many of them stopped purchasing products after burning their fingers without realising that the fault lies in the business model of the Amway. The self-styled FMCG giant claims that it has a turnover of Rs. 1,218 crore in 2007-08 and hopes to increase its business volume by 25 per cent this fiscal.

One can infer that it is on an aggressive promotion of its cheating business of money circulation scheme in the guise of product sales. It claims that it is direct selling and no one can go to any of its distribution points and purchase good directly from there.

William Pinckney also fails to mention that three more criminal cases were filed against Amway India Enterprises in Andhra Pradesh. And they are on a panickey mood on how to contain these criminal cases. The company did not clarify why it is not pursuing to face the criminal cases in the court of law. Probably, it is afraid that the verdict would come against them once again like in the Andhra Pradesh High Court and the Supreme Court of India.

One more criminal case against Amway at Vijayawada

The Governorpet police of Vijayawada city filed a criminal case against Amway India Enterprises following a judicial court order on Friday i.e. 13-02-2009. It is the third criminal case against Amway India Enterprises. However, there is another criminal case filed against the company's distributors at Nacharam Police station in Hyderabad.

The Amway has been marketing its products in a multilevel marketing system which in fact is a money circulation scheme and the Andhra Pradesh High Court already confirmed to that effect after a lengthy hearing on Writ petition filed by Amway India Enterprises. Even after the High Court judgment and criminal case pending in a court of law against its scheme, the Amway India has been blatantly conducting its operations through its distribution points through out India. Its independent business owners have still been inducing the gullible with huge profits if they enrol more members into the scheme.

In the instant case, the doctor against whom the criminal case was booked, has been prescribing Amway products to his patients without feeling any guilty. Some IBOs even mentioned in this BLOG sometime back that it is unethical on the part of the doctor to sell products to the patients.

Criminal case filed against Amway at Chikkadapally police station

After a long gap, a criminal case was filed against Amway India Enterprises by the Chikkadapally police station on February 12. One Mr Srinivasa Reddy of Chikkadapally lodged a complaint with the police about the fraudulent modus operandi of Amway India Enterprises after an attempt was made on him to become the member of a money circulation scheme being run by Amway India Enterprises in the guise of sale of products. But the police refused to register the case stating that they were busy with so many crimes. The aggrieved Mr Reddy approached the Nampally Chief Metropolitan Magistrate who issued orders directing the police to register the case and proceed with investigation.

This is only the second case against Amway India Enterprises being the first one registered against the company way back in 2005. The criminal case is still pending in the Nampally Chief Metropolitan Magistrate court. Meanwhile, the Andhra Pradesh State Government issued orders on September 15, 2008 restraining Amway India Enterprises from publishing any advertisement in any media. Still, the Amway India is continuing their advertisement blitzkreig. Now another case is booked against the company.

One has to wait and watch what would now the company do.

DGP issues orders to register FIRs against frauduelnt companies

Office of the
Director General of Police
Andhra Pradesh, Hyderabad

R.C. No. 6288/Compts-2008

Memorandum

Sub:- Non-Registration; of information of cognisable offence of Money Circulation Schemes by the Police Officers - Request to issue orders to all SHOs in the State to register the FIRs on the information of Money Circulation Schemes - Regarding.
Ref:- Govt Memo No. 6344/P.S./Genl.B/A2//08-1, Home(Genl.B) Department dated18.12.2008 On Representation of Sri M V Syama Sundar for Corporate Frauds Watch Vijayawada City dt. 08.11.2008
******

A copy of reference cited along with enclosures is sent herewith for taking necessarya ction in the matter.

Encl:- (As Above)

Sd/- S V Ramana Murthy, I.P.S.
For Director General of Police

To
All Commissioners of Police
All Superintendents of Police, including Railways


This is the full text of the Memorandum issued by the Director General of Police, Hyderabad.

Andhra Pradesh DGP orders registration of cases against money circulation schemes

Kudos to Shri Ajayendra Pyol, Home Secretary and Director General of Police Shri Shyam Sundar Prasad Yadav for responding positively and issuing orders to all superintendents of police and commissioners of police in the State to give directions to all SHOs to register cases against money circulation schemes.

It is apt to recall here that Corporate Frauds Watch represented the issue to the Director General of Police to direct the station house officers (SHOs) to register cases against money circulation schemes whenever they are approached by the complainants.

It has been bitter experience of the activists all over the State to be spurned by the police officers when they approach them to register a case against the fraudulent companies which are indulging in money circulation schemes in the guise of sale of products, services et al. The activists have to approach the criminal courts requesting the honourable magistrates to refer the criminal cases to the police officers to get them registered. One only hopes that things would be brighter in future and there would be no hardships for registering cases against the fraudulent companies.

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Multi-level marketing menace taking its toll on our economy

The recent arrest of the chief of businesstalent.com in Hyderabad had proved once again that how the gullible and for that matter our economy is vulnerable to the schemes of the fraudulent companies. After all these frauds committed by a number of crooked companies, people still fall for the fast buck i.e. easy and quick money. They never realise that it is a trap for taking away their hard-earned money. They are easily duped with the tall promises of becoming rich in a jiffy.

HOW TO RECOGNISE THE FRAUDULENT SCHEMES:

It is very easy to identify the fraudulent schemes provided you are not hooked to the concept of making easy and quick money. Generally, though people knew that it is a fraudulent scheme, they think that they would be the first to make some money and the late entrants would lose their money.

But it is not true. It depends upon how many you could further deceive more people with sweet words and empty promises to join the scheme. If you cannot enroll more members you would certainly lose all your money.

For instance, there are a large number of people who lost lakhs of rupees after purchasing products from Herbalife. They could not sell their products though they stocked a sizeable amount of products and left with the stocks. Still, they do not realise that is the fraudulent scheme that is responsible for their loss. They blame themselves for their incompetency in enrolling new members.

TWO POINTS TO PONDER:

Whenever you are approached by someone to join some scheme, with the conditions of becoming member and further enrolling members, you must immediately realise that is a chain scheme and illegal. Try to tell him that is illegal and a crime. If he does not heed to your advise, try to approach the police. Generally police do not hear our voice.

Other option is approach an advocate or write to the Secretary of Corporate Frauds Watch to take legal recourse against such fraudulent companies.

The biggest corporate fraud ever pulled

There have been scandals of huge proportions in the past. But this is the biggest fraud ever pulled on people in the history of Free India. It is such a huge fraud that people all over the country were taken aback to absorb the intensity of it.

Byrraju Ramalinga Raju, founder and chairman of Satyam Computers Services Ltd, who has been looked at with awe for building such a vast empire of computer services, has suddenly found himself behind bars before he realised whatever happened.

But it is hard to believe that it all happened without a preplanned conspiracy and without the knowledge of a group of persons at the helm of affairs. And how could it bypass the scuritnising eyes of the world famous auditors. Anyway, the billion dollar question is whether Ramalinga Raju manages to get away without minor reprimand or none at all. Anything is possible in India.

Another thing that would never be reported is the details of political patronage behind the scandal.

It seems the Indian Press is trying to evoke some sympathy among people for Ramalinga Raju by reporting how he is spending time in the jail. But the moot point whether he deserves that sympathy.

Many things have to come out of the cupboard and it is a suspenseful drama till the end.