The Hindu Business Line : AP High Court grants relief to Amway

Amway India Enterprises, the wholly owned subsidiary of the US-based $7-billion Amway Corporation, has said that the Andhra Pradesh High Court has granted injunction against CID proceedings on the company.

With this order, all Amway offices across the State could commence normal business operations. "All our distributors can carry on business as usual," Mr Mansoor Ali, Associate Vice-President of Amway, said.

The court ruled that the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, did not prima facie apply to Amway, he said.

Addressing a press conference here on Friday after getting the injunction, he said the court had issued a directive to the police not to interfere in the lawful business of Amway and its distributors.

Amway, which started its commercial operations in 1998 in India with an investment of Rs 151 crore, registered a turnover of Rs 705 crore last year.

Acting on a complaint of mental harassment, the Economic Offences Wing of CID (Crime Investigation Department) sleuths had raided offices of Amway across the State early this week and filed cases on the charges of extortion, cheating and money circulation.

Mr Ali and other top Amway officials said the raids did affect both sales and image.

They said they would cooperate fully with the police in the investigations.

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