AMWAY OFFICIALS ARREST: Stinks of conspiracy

The recent arrest of Amway India Enterprise’s top officials, by Kerala CB-CID(Economic Offences Wing) including chairman and managing director William S Pinckney, a US national and two other directors Sanjay Malhotra and Anshu Budhraja, has certainly embarked a stream of shock and worry among its officials, distributors and consumers. Moreover, the way certain Assamese electronic media channels has sensationalized the news, perhaps has given minor heart attacks to the ones associated with Amway.

It is to be noted that Amway India is a direct selling franchise marketing company operating in over 80 countries round the globe, with its head quarter situated in the Ada Michigan, U.S. Though news reports are claiming that the arrests have been made in regards to money laundering and chit funds associated with the company. However, analyzing the documents, company policy and other terms and conditions along with a proper introspection of the complete episode points the arrow in a total reverse manner and gives certain snippets of conspiracy.

Starting with the arrest of the Amway officials, all of them were in anticipatory bail in two cases filed in 2012 and they had gone to Calicut, Kerala before the Calicut Crime Branch to record their statements in an investigation with respect to the same case. However, when the officials reached Calicut, Police from Wayanad district arrived in Calicut with warrants in a case dating back to 2011 and arrested Mr. William S Pinckney and the other two other officials.

According to sources in Amway, the officials of Amway were always cooperating with Police by

providing all information and documents, they needed. A press release from Amway also claimed that, “The company management has always provided full cooperation and support in any investigation and so there was no any need to take any person in custody as Amway has always demonstrated and is law abiding corporate citizen.”

Sources claim that, in both the cases dated back to 2012 the police had informed Amway management about it and also all the officials against whom the allegations were slammed were under anticipatory bail. However, in this particular case of 2011 in which the arrests have been made, Wayanad Police had earlier neither issued any summons to the company or it officials to join the investigation nor was any information sought. This certainly indicates towards malafide intent of the Kerala police.

Secondly, another important matter that hasn’t managed to grab the attention of the mainstream media is that; back in 2011 a couple Sajeev Nair & Bindu Nair who had been heavily successful in Amway as Double diamonds and spreading the Amway business in Kerala and other southern states joined Monavie India, a chain marketing system after being paid a sum of 20-30 crore by Monavie. But, as a result of their breach of trust and dishonesty with Amway and unaccountability Sanjeev Nair was kicked out of Amway and in the later course of time he was also arrested by Kerala police after being accused of money laundering as an associate with Monavie India. Sources reveal that Sajeev with his political connections forced the Kerala Police to intervene with Amway operations and practically stopped the Amway workings, during 2012 when Amway offices were raided by the Kerala CB-CID (Economic offences wing).

Thirdly, the cases on the basis of which the arrests of William S Pinckney, Sanjay Malhotra and Anshu Budhraja were being made, was registered on 2012 by a housewife, Visalakshi in Kozhikode, who alleged that she had bought products worth Rs 3 lakh, but could not market them and incurred huge loss. But, according to the company policy if any authorized distributor of Amway purchases certain products, however in case that person is not satisfied with the decision of purchasing, there’s always a provision to return the purchased items within a period of one month. Also according to reports Visalakshi joined Amway India as an Independent Business Owner, back in 2002, so why after so many years i.e. on 2012 the need to register a case against Amway officials aroused. Also, Visalakshi allegations comes only after tainted Amway diamonds Sanjeev Nair was by evicted from the company, this fact too points a negative finger towards Sanjeev Nair and his motives.

Now, shifting focus to Assamese electronic media, certain Assamese media channels, including the most popular DY365 and 24 hours satellite channel of the state, has been featuring completely bogus news against Amway and trying to defame its status in the social sphere. According to the claims by the channel, Amway products are being sold at a higher rate than the actual price. But, if one visits the office can know the fact very clearly, that Amway products are never sold through any retail outlets, they are made available to the non ABOs only through Amway Distribution Centers situated at various cities. Also, products are sold only to the authorized ABOs, where after the purchase a computer generated receipt is given containing detailed description of the item purchased, cost, tax etc. The news channel’s claim regarding the sale of products at a higher rate is completely absurd, without any kind of evidence.

Though, all the arrested Amway officials have been granted bail by a Kerala court, however with the sudden apprehension of the top officials of a company with a turnover of over 2000 crore, during the last fiscal year, has certainly put black spots on the 50 year old organization’s image. Now, it would it would be interesting to watch out, what strategy the company plans against the conspirators and to get rid of the serious allegations against it.

By - Shamim Zakaria