Kerala Minister Thiruvanchoor Radhakrishnan asked the South Zone ADGP Shanker Reddy to conduct an investigation into the circumstances that led to the arrest of Amway Chief by the state crime branch in connection with fraud cases registered against him.
A team of officials from Amway had met Home Minister the other day and submitted a complaint about the arrest of their chief, official sources said here today.
In the backdrop of police action against Amway, Corporate Affairs Minister Sachin Pilot had stated in Delhi yesterday that the government is looking to remove the legal ambiguities to differentiate between fraudulent ponzi schemes and genuine businesses run by "reputed and law-abiding" entities.
Pinckney and Directors Sanjay Malhotra and Anshu Budhraja were arrested by the Wayanad District Crime Branch (Economic Offences) wing from Kozhikode on May 27 in connection with three fraud cases registered in Wayanad district.
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They were booked under the Prize Chits and Money Circulation Schemes (Banning) Act based on complaints filed by distributors in 2011.
A local court in Waynad had granted conditional bail to Pinckney and the two company directors the next day of their arrest.
The complainants accused the company of failing to ensure the promised benefits to those who joined the network marketing business. They alleged that the company had forced them to buy Amway products which included cosmetics and protein powder for huge sums of money.