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CEO of Sify Technologies arraigned

Published: 31st May 2013 11:49 AM  |   Last Updated: 31st May 2013 11:49 AM   |  A+A-

In a major development, the Economic Offences Wing of the Kozhikode Crime Branch has arraigned officials of a Chennai-based web hosting company as an accused in the Amway multilevel marketing fraud case.

According to Crime Branch officials, Sify Technologies is still continuing to provide its services to Amway, despite receiving a warning letter in regard to the issue three months ago. It is learnt that Sify Technologies CEO Kamal Nath has been charged with section 109 (abetment) of the Indian Penal Code and has been listed as the 14th accused. A warrant has also been issued by the Chief Judicial Magistrate Court in Kozhikode. Crime Branch had sent the warning letter to Sify after registering a case against Amway, following a complaint filed by one Vishalakshi of Chathamangalam.

“In the letter, we clearly pointed out that Amway India Enterprises has been engaged in money chain business in the state, which is illegal, and hence Sify should stop their services to Amway with immediate effect.

If it continues to support the company, Sify would be arraigned as an accused in the case. In its reply, the company claimed that they took up the matter with Amway, which maintained that they have been engaged in only a bona fide business. As a result, the company CEO has been arraigned as an accused,” said P A Valsan, SP, Economic Offences Wing, Crime Branch, Kozhikode.

AITUC SoftPedals Amway Issue

Kozhikode: The actions initiated by police against Amway has hurt not only INTUC but also AITUC, it appears. The AITUC-led Multi Level Marketing Employees Federation has approached the Chief Minister, Home Minister and top police officials seeking the ouster of Crime Branch Economic Offences Wing SP P A Valsan. “Crime Branch SP Valsan has amassed wealth to the tune of crores by implicating MLM companies in criminal cases. He threatened the companies by conducting unnecessary raids across the state. A written complaint has been submitted to the Chief Minister, Home Minister, DGP and ADGP (Crimes) in this regard,” said E C Satheesan, Federation general secretary.  “We have a clear stand on the Amway issue. There is a disproportion in price and quality as far as Amway’s products are concerned and it is a money chain business. But we are against harassing the people involved in the business. Distributors cannot be considered as culprits in the case”, said Satheesan, when asked about AITUC’s affinity towards the American company.



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