Results 1 to 1 of 1
05-29-2013, 12:31 PM #1
FICCI condemns arrest of Amway India's chiefWilliam S Pinckney, CEO of Amway India, after being arrested by the police in a fraud case in Kozhikode on Monday, May 27, 2013.
Condemning arrest of Amway India CEO William Scott Pinckney , Ficci on Tuesday said it was inappropriate and unwarranted since there is no criminality involved and the case should have been handled as a consumer redressal.
"This arrest will give an inappropriate missive to the global business community and might also have adverse impact on Indo-US business relationships," it said.
Ficci Secretary General A Didar Singh has written to the Kerala government requesting it to relook into the matter.
Amways India Chairman and CEO and two company Directors Sanjay Malhotra and Anshu Budhraja were arrested in Kerala on Monday on charges of financial irregularities.
The arrests were made on a warrant issued in three cases registered by Wayanad Crime Branch in 2011 on charges of violation of Price Chits and Money Circulation Schemes (Banning Act).
The chamber said the direct selling (DS) industry, which took root in India in the early 90's, today is a thriving industry of over Rs 6,000 crore with over 60 lakh persons are distributors or selling agents or representatives of DS companies - almost 70 per cent of whom are women.
To understand the potential of this industry, Ficci has formed a sub-group for the direct selling industry.
For the past one year, the group has been working relentlessly to bring a clear difference between the legitimate and illegitimate business runners, it said.
"Our plea is that direct selling companies should be excluded from Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (PCMCS)," it added.
The chamber said as per our understanding, there is no financial circulation undertaken by these direct selling companies often also referred as multi-level marketing companies.
Ficci hoped that the authorities would reconsider the entire legal structure governing the direct selling industry in India so that such instances do not recur in future.
Meanwhile, a local court in Kalpetta, Kerala on Tuesday granted conditional bail to Pinckney and two company Directors who were remanded to 14 days judicial custody.