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Chairman and Chief Executive Officer of Amway India William S Pinckney has been arrested by Andhra Pradesh police.
The arrested Chairman and CEO of Amway India has been remanded to custody for 14 days by the Judicial Magistrate in Kurnool today.
The Amway Chief, who was taken into custody by a team of Kurnool Police from the company headquarters in Gurgoan on Monday, was brought to Kurnool today and produced before the magistrate.
Unethical practices
Pinckney, head of the direct selling company faces charges under section 420 of IPC (cheating) and violations under the Prize Chits and Money Circulation Schemes (Banning) Act 1978, according to Kurnool police.
A case was registered in December 2013 following a complaint by an advocate Jagannatha Reddy on allegations of cheating and financial fraud.
According to the Superintendent of Police, Kurnool all those involved in the business would be treated as a party to the illegal activity. At Kurnool, the police identified three persons- Venkateswarlu, Vinaykumar and Erranna- who supported the business. The police planned their arrest after investigation and seize the business premises, products and stock point.
Legal framework
Meanwhile, Amway has in a statement stated that due to lack of a legal framework for the direct selling Industry, any case filed is being misinterpreted and booked under the PCMCS, which is otherwise intended to regulate financial schemes.
"We are aggrieved and shocked at the sudden and unwarranted act of detention of our official. The case against which the action has been taken was filed in December 2013. The company had no prior information on the same. The allegations mentioned in the FIR are frivolous and gives a misleading impression about our business," it said.
Amway is a legitimate direct selling FMCG organisation operating in the country since 1998, selling more than 140 high quality products. "We have been compliant with all laid down laws and guidelines of the Union and State Governments. We have also made an investment of more than a $100 million in a manufacturing facility in the country,'' it said.
Till date, Amway has furnished all information and documents sought by the police officials.
"The direct selling industry has been repeatedly seeking an amendment to the PCMCS Act and has been working along with various industry bodies and Government for the same. We urge the authorities to take note of the challenges faced by this industry and give us clarity to facilitate its smooth functioning,'' the statement said.
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