Amway India's statement after arrest of CEO, two directors
Amway India issued the following statement after Kerala police arrested its managing director and CEO William S Pinckney and two directors of the multilevel direct selling giant.business Updated: May 27, 2013 19:29 IST
“Mr William S Pinckney, MD and CEO of Amway India and two Directors, Mr Anshu Budhraja and Mr Sanjay Malhotra - who had on 3rd May 2013, been granted anticipatory bail by the Kerala High Court over a case filed at Kozhikode in 2012 - have been taken into custody by the Wayanad Police, Kerala for another case filed in 2011.
We would like to clarify that with respect to the 2011 case, the company or its officials were not issued any summons to join the investigation nor was any information sought by the police. The Company Management would have cooperated with respect to the 2011 matter as well, as we always have as a law abiding corporate citizen.
The cases had been filed under the Prize Chits and Money Circulation Schemes (Banning) Act 1978 - the Act which currently is under amendment at the Centre. The Indian Direct Selling Association (IDSA) of which Amway is a member, has been seeking amendments to the Act, which has been echoed in a 2013 April FICCI report compiled by Dr Bibek Debroy - Report on Direct Selling Industry in India, where he points - an amendment is needed to the Prize, Chits and Money Circulation Schemes (Banning) Act, making the (distinction) clear.
Till date, Amway has furnished all information and documents sought by the Police officials.
Amway would like to state that it has great confidence on the judicial processes and legal system, and hope to secure a favourable outcome soon.
First Published: May 27, 2013 19:27 IST