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There is no relief in sight as yet for managing director and chief executive officer of Amway India, William S Pinckney, who was arrested by the Kurnool police in Andhra Pradesh on Monday.
Pinckney was shifted to the Warangal Central Prison on Thursday by the Khammam police who took him into custody from the Kadapa sub jail on Wednesday.
Khammam One Town circle inspector of police, SV Ramana Murthy, who is investing a criminal case filed against the direct selling company, told Business Standard Pinckney was produced before a magistrate today, who remanded the Amway chief to a 14-day judicial custody. Following this, Pinckney had been shifted to Warangal jail.
Meanwhile, the Kurnool police is stated to have secured court orders for taking Pinckney into custody again for questioning in a case filed by an advocate accusing Amway of indulging in unethical practices of money circulation.
A local court in Kurnool dismissed the bail petition filed by Pinckney on Wednesday. The Kurnool police said that charges had been filed against Pinckney under Section 420 (cheating) and Prize Chits and Money Circulation Schemes (Banning) Act 1978 (PCMCS).
Police said that criminal cases under PCMCS have been filed against Amway not only in Khammam and Kurnool but also in Jangoan in Warangal district, Medak, Vijayawada and Hyderabad.
In 2008, the Andhra Pradesh government had banned direct selling business. Thereafter, the state crime investigation department registered a case against Amway. The company approached Andhra Pradesh High Court stating that its marketing model does not fall under the provisions of PCMCS. The high court had ruled the company's business model illegal and the case is pending before the Supreme Court currently.
