Drubbed by Centre, State goes mild on Amway

The Kerala operations of the Amway,  which was facing the heat of police investigations for the last couple of weeks, culminating in the arrest of its country CEO and directors, seem to have got a breather with the state government deciding to take its foot off the investigation pedal.

Speaking to Express, Thiruvanchoor Radhakrishan said: “By arresting the Amway officials in a haste while they came to Kozhikode to appear in another case, police have done a cheap act. Hence, ADGP North Zone has been directed to look into the circumstances that led to the arrest of three persons.’’

Apparently, the State Government move follows Union Minister Sachin Pilot voicing his disapproval in the arrest of Amway CEO and commenting that such incidents would “negatively affect the prospects of the country as an attractive investment destination.’”

In the past, the Kerala Government has ruthlessly cracked down on MLM firms, showing no remorse as to whether it will bring in an investment backlash or not.

However, all these firms were domestic companies and none of them had a foreign origin.

Crime Branch would soon file the chargesheet in the multi-crore Tycoon money chain fraud case in which eight directors of the company were arrested on charges of the Prize Chits and Money Circulation (Banning) Act, Money Laundering Act, IT Act, SEBI Act and RBI Act and Section 468 (forgery for purpose of cheating) of the IPC. Similarly, police acted tough against MLM firms including RMP, Nano Excel, Total 4 U and Bizarre.

The fact that Amway India has been operating its business in the country since 1998 is the main argument put forward by the company management to counter the recent police action in the state.

It also showcases a long list of its ‘successful ABOS’ as well.