Kerala police on Friday (9-11-2012) raided the Amway outlets, warehouses all over the State and closed down the outlets.
This is the second time in a year Kerala police conducted raids on Amway stating that it is running illegal money circulation scheme in the name of selling products.
Recently, the Kerala Government filed an affidavit in the Kerala High Court stating that the guidelines the government issued sometime back related to direct selling companies but not to the multilevel marketing companies like Amway and others.
Basing on the affidavit, the Kerala police raided the Amway outlets and seized the warehouses.
Details are awaited.
This is the second time in a year Kerala police conducted raids on Amway stating that it is running illegal money circulation scheme in the name of selling products.
Recently, the Kerala Government filed an affidavit in the Kerala High Court stating that the guidelines the government issued sometime back related to direct selling companies but not to the multilevel marketing companies like Amway and others.
Basing on the affidavit, the Kerala police raided the Amway outlets and seized the warehouses.
Details are awaited.
On August 7, 2011, the Kerala police conducted raids on the nine premises of Amway India in Kerala following criminal cases against the multilevel marketing company filed by several persons at three places - Kannur, Wynad and Thrissur.
Police conducted raids on the premises of Amway India at Thirvunanthapuram, Kollam, Kottaaym, Kochi, Kozhicode, Thrissur, Palakkad, Wynad and Kannur in the Indian southern State of Kerala.
There have been several complaints against this fraudulent company of indulging in money circulation scheme in the name of selling products. This fraudulent company has been offering a 'good business opportunity' to become rich in 3-5 years.
The website of Amway India offers its members a monthly of Rs. 62,500 if they succeed in enrolling 102 members downline of each member with the business model of 6-4-3. That means every member has to enroll six members and in turn these six members has to enroll four members each and these four members has to enroll three members each to complete one cycle. If the cycle is completed the first member would earn every month Rs. 62,500 without any personal effort.
In effect, the business of Amway India has been completely shut down for the time being in this Arabian coastal cash-rich State of India.
It may be recalled that Andhra Pradesh High Court has already held that the business model of Amway India is illegal and police have powers to stop such business. And when the Amway India preferred a special leve petition in the Supreme Court of India, the Apex Court upheld the judgement of Andhra Pradesh High Court. Still, the fraudulent company is still practising the same business model for quite sometime on the pretext that there were no complaints.
The Madras High Court in the Apple FMCG case held that for the simple reason that there were no complaints the business model would not become legal. A crime is a crime whether there were complaints or not.