Tuesday, 13 August 2013

Amway India CMD lies to the journalists

The other day the CMD of Amway India Enterprises in an interview to a nitwit Indian journalist with straight face lied that the Amway India is not a chit fund company but an FMCG. What a laughable statement!
The CMD, Mr William Pinckney, has conveniently skipped the issue about the business model of Amway. 
The Andhra Pradesh High Court has rightly pointed out that Amway's business model is illegal in its judgement in 2007. 
The Honourable High Court stated, "It is, thus, evident that the whole scheme (of Amway India) is so ingeniously conceived that the inducement for aggressive enrollment of new members to earn more and more commission is inherent in the scheme.  By holding out attractive commission on the business turned out by the downline members, the scheme provides for sufficient inducements for its members to chase for the new members in their hot pursuit to make quick/easy money."
When a batch of criminal cases were filed against the fraudulent company under Section 2 (c) of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, it meant that the company is indulging in illegal business activity of money circulation scheme not under prize chits.
The High Court also stated, "Thus the two ingredients are satisfied in the case of promoter (Amway India) too.  We are, therefore, of the considered view that the scheme run by the petitioners squarely attracts the definition of “Money Circulation Scheme” as provided in Section 2(c) of the Act. (Para 35).
In spite of the clear judgement, the CMD has the gall to state that his company was not a chit fund company. Anyway who said that Amway India is a chit fund company.
It is a product-based money circulation scheme company. 
It is high time people realised the dubious claims of the company and fall prey to its misleading propaganda.
Crooks say many things but how could a journalist take them for granted. The journalist should have checked for the criminal cases against the company. The journalist should have asked the police officials who filed criminal cases. 
For reasons better known to them these journalists forget the basic tenets of journalism - Question.

Saturday, 3 August 2013

Chief Secretary of Mizoram to take disciplinary action against IPS officer behind Mizodirect

THE SHILLONG TIMES NEWSPAPER on August 2, 2013 reported that the Mizoram government has nothing to do with the Mizodirect and it is backed by a senior IPS officer with the rank of Addl Director General of Police.
Here is the report which reflects the story earlier published in this blog.

Aizawl: The Mizoram government ton Thursday disowned a company which claimed itself to be a state government undertaking and said strict disciplinary action would be taken against the senior IPS officer who has floated the firm. 
A disclaimer issued by the Chief Secretary’s office said Mizoram Direct Marketing Limited, registered under the Companies Act 1956 on March 11, 2013 was launched by Principal Secretary of the State Industries department P C Lallawmsanga in his personal capacity, and not on behalf of the government of Mizoram.
The Government officials floating business outfits to conduct commercial activities by branding the concern as a wholly owned company of the government of Mizoram required a policy decision by the Cabinet, the disclaimer said.
“Memorandum of Association & Articles of Association have neither been vetted by the Law Department nor concurred by the Finance Department, Government of Mizoram before approaching the Registrar of Companies and the Directors and have also not obtained prior permission as required under the CCS (Conduct) Rules to float a commercial concern,” it said.
Lallawmsanga has not been authorised to sign the MoU between the State government and Chennai-based RMP Infotec Pvt Ltd and the licensee agreement between Mizoram Direct Marketing Ltd and Mizo Lifestyle Marketing Pvt Ltd  purportedly on behalf of government the disclaimer said.
Chief Secretary L Tochhong August 1, told the media persons that the government was contemplating taking disciplinary action against Lallawmsanga, a 1984 batch Tamil Nadu cadre IPS officer holding the rank of Additional DG of Police.
Punitive action might also be taken against the other two company ‘directors’ – Teresy Vanlalhruaii and Lalbiakthanga Chhakchhuak, sources said.
The Mizoram Direct Marketing Limited was formally launched on July 18 at Science City Auditorium in Kolkata, attended by well-known personalities including those from big companies.
Sources said Mizoram Chief Secretary informed Lallawmsanga not to attend the launching function, but the latter disobeyed her orders claiming that he and the newly-formed company had the blessings of the State Chief Minister.
The company’s website was taken offline soon after launching of the company while it was suspected that some other government officials in the state Information and Communication Technology department and National Informatics Centre (NIC) were involved as the website was also reportedly designed by the state government-owned Zoram Electronics Development Corporation Ltd. (ZENICS).
The company’s main business, according to the pre-launch advertisements, was promoting direct selling of branded consumer goods in the country. (PTI)