SC directs AP govt to expedite probe into charges against Amway

New Delhi, Aug 14 (UNI) The Supreme Court today directed Andhra Pradesh police to complete the investigation against US based multinational Amway India Enterprises Limited within six months for an offence under Prize chits and Money Circulation (banning) Act, 1978.

The Bench comprising Justices H K Sema and Lokeshwar Singh Panta also dismissed the petition of the company challenging the judgement of Andhra Pradesh High Court dated July 19, 2007, throwing out the writ petition of the company seeking declaration that sec 2(C) of the act was not applicable to the buisness of the company.

Amway is a subsidiary of US based Amway corporation having an annual turnover of 6.4 billion US dollars for past 48 years and has been operating in 80 countries worldwide.

The company which has a network of 4.5 lakh distributors for selling its product in the country has unlimited liability and is registered under the Companies Act 1956.The Indian chapter of the MNC was launched in 1995 with an investment of Rs 151 crores.

Hyderabad police had registered a criminal case against the company on a complaint filed by one Balaji Sukumar B.

The allegation against the company was that it was encouraging and alluring the people to get involved in scheme for making easy money, which is an offence under the act.

But according to the company it was carrying on the business of selling of its consumer product through a chain of distributors and it does not constitute any offence under sec 2(C)of the Prize Chits and Money Circulation (banning) Act 1978,and hence the High Court has committed an error of law and on facts by dismising it petition.

The Supreme Court, however, found no merit in the petition and dismissed the same clearing the decks for prosecution of the company.

UNI