Amway CEO in Khammam PC; nine cases across AP

Amway India CEOThe Khammam police in Andhra Pradesh took Amway India CEO William Scott Pinckney into custody today following registration of a case against the direct selling company.

Amway is facing nine criminal cases at various places in Andhra Pradesh.

A court in Kurnool district also rejected Pinckney’s bail petition and granted his five-day remand to Kurnool police while the Punjagutta police registered yet another case against him.

Howver, before Kurnool police could take his custody, the Khammam Police obtained a production warrant from a court in Khammam and furnished it to the Kadapa jail authorities this evening. A complaint has been filed against Amway by one G Rama Rao in Khammam.

“We have taken him (Pinckney) into custody from Kadapa prison….He will be produced before a court in Khammam district,” a senior police official told PTI late this evening.

Kurnool Superintendent of Police (SP) Raghurami Reddy said they will seek Pinckney’s custody from Khammam police by producing the Kurnool court’s order. “We may lose one day (of custodial interrogation period) in this process,” he said.

“The police were permitted to take him (Pinckney) into five-day custody from tomorrow (by Kurnool court). It (the Amway business) is going on for the past several years. We need to find out the details about the company’s revenues and mode of operations,” the police official told PTI over phone from Kurnool.

Responding to a complaint alleging financial irregularities in Amway’s operations, Pinckney was arrested in Gurgaon by the Kurnool Police. He was produced before a court

yesterday which sent him to Kadapa district jail on a judicial remand.

Meanwhile, a complaint of cheating was registered against Amway in Punjagutta police station in Hyderabad by a local organisation today, said Deputy Commissioner of Police (West Zone) V Satyanarayana.

“The matter has been forwarded to the legal cell seeking its opinion as no victim has come forward with regard to the complaint….the victim has to come forward and tell about the alleged wrongful loss caused by the multi-marketing business run by the company,” he said.

Amway faces criminal complaints in Guntur, Vijayawada, Prakasam, Khammam, Warangal and Medak. In addition, there are three cases in Hyderabad.

According to police, the CID had registered a criminal case against Amway in 2006. The company approached High Court seeking a declaration that its marketing scheme does not fall under the provisions of `The Prize Chits and Money Circulation Schemes (Banning) Act, 1978′.

But the HC held that the scheme is an illegal `Money Circulation Scheme’ and falls within the definition of mischief as described in the Act.

The company got no relief from the Supreme Court either, as per the police.

(Source; PTI)

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