Amway's William S Pinckney, 2 other officials granted bail

The three representatives of multi-level marketing company Amway were arrested based on a case filed in 2011 in Wayanad, for alleged violation of Prize Chits and Money Circulation Schemes (Banning) Act

Amway India today said that its chief executive officer and managing director William S Pinckney, and two other directors — Anshu Budhraja and Sanjay Malhotra, who were arrested by the crime branch of Kerala Police, have been granted bail Tuesday afternoon by the Wayanad District Court.

“We are happy to announce three senior officials of the company have been granted bail this afternoon by the Wayanad District Court. We also reiterate our continued confidence in the Indian legal and judiciary system and are confident of a favorable outcome at the end of the investigative and legal process in Kerala,” Amway India said in a statement.

Earlier, Kalpetta chief judicial magistrate court, in Wayanad district of Kerala, had remanded the three top officials of Amway for 14 days under judicial custody. They were sent to Vythiri sub jail.

The three representatives of multi-level marketing company Amway were arrested based on a case filed in 2011 in Wayanad, for alleged violation of the Prize Chits and Money Circulation Schemes (Banning) Act. The Amway officials were in Kozhikode in connection with a different case filed in 2012 by Visalakshi of Kozhikode who claimed to have incurred loss through the network.

Although Pinckney and others obtained anticipatory bail from Kerala High Court in the case, the Wayanad police arrested them in similar petitions filed by three other Amway distributors in Wayanad district. This case was registered at Meppadi Police Station, in Wayanad.

According to the Crime Branch, Amway India had distributed various health and cosmetic products at prices higher by 6-10 times than the open market, through multi level marketing network. The company cheated a large number of distributors and customers offering them false benefits.

The police alleged that the company illegally earned Rs 48 crore on annual basis through this network marketing. Police sources said that they were also on a look out for two more directors of the company in the case.

The company also stated that it is “aggrieved and shocked at the sudden and unwarranted act of detention of its officials, especially when they were fully cooperating in investigations, responsive to queries and documentation requests of the police authorities”.

“What can best be described as a routine consumer redressal issue or complaint, has been misinterpreted and booked under the Prize Chits and Money Circulation Schemes (Banning) Act 1978. This has repeatedly been a challenge not only in Kerala but elsewhere across India, for the direct selling industry,” Amway said in its statement.

Amway, which operates in 108 countries worldwide, sells about 140 products in India. “We have been compliant with all laid down laws and guidelines of Union and State Governments including that of the State Governments of Kerala (Kerala Direct Selling Guidelines 2011) and Rajasthan,” it added.