Amway India CEO, 2 directors arrested, granted bail

Crime Branch-Crime Investigation Department (Economic Offences Wing), on Monday, arrested Amway India Enterprises Chief Executive Officer and Chairman William Scott Pinckney and two directors of the network marketing company on charges of financial irregularities and cheating. A local court on Tuesday granted conditional bail to network marketing firm Amway’s India Chairman and CEO William S Pinckney and two company directors who were remanded to 14 days judicial custody. Pinckney and directors Sanjay Malhotra and Anshu Budhraja were arrested by the Wayanad Crime Branch (Economic Offences) wing from Kozhikode yesterday in connection with three fraud cases registered in Wayanad district. They were booked under the Prize Chits and Money Circulation Schemes (Banning) Act based on complaints filed by distributors in 2011. 
The arrest was based on complaints filed in the Meppady police station by distributors Ashraf and Jaffer from Rippon and another distributor Hariharan from Vaduvanchal, Ambalavayal, Wayanad. The complainants accused the company of its failure in ensuring the promised benefits to those who joined the network marketing business. They alleged that the company had forced them to buy Amway products which included cosmetics and protein powder for huge sums of money. Last year the Crime Branch (Economic Offences wing) had conducted searches at Amway offices across the state including Thrissur, Kozhikode and Kannur districts as part of its crackdown on money chain activities. The company’s godowns in these centres were also closed and goods seized.  Meanwhile English Daily Times of India (TOI) accuse Andhra Pradesh cops going slow on Amway case, as Andhra Pradesh police have registered several cases against multi-level marketing (MLM) giant Amway since 2006, they seem to be going slow on the firm. Incidentally, the MLM giant has been on the radar of the AP police since 2006, but for mysterious reasons, the men in khaki have been going slow on the firm despite seven criminal cases were booked against it at various police stations in the state.