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Amway chief arrested

William S. Pinckney in Kurnool on Tuesday. (PTI)

Hyderabad, May 27: Andhra Pradesh police has arrested William S. Pinckney, chairman and CEO of Amway India, in connection with a criminal case registered against the direct selling company.

Pinckney was produced in a district court in Kurnool today after being arrested in Gurgaon yesterday on a complaint of unethical circulation of money through Amway’s direct selling operations.

The court has remanded him in 14 days judicial custody till June 10. A bail petition was moved in the court, which was rejected and the case has been posted for tomorrow.

This is the second time that the Amway India CEO has been taken into custody, after Kerala police arrested Pinckney and two Amway directors last year on similar charges.

A case has been registered against the CEO under Section 420 of the Indian Penal Code and Section 4, 5 and 6 of the prize chits and money circulation schemes (banning) act.

Acting on a complaint registered by Shyam Sundar, a lawyer from Vijayawada, against Amway, Kurnool police brought him to Andhra Pradesh on a transit warrant.

“The allegations mentioned in the FIR are frivolous and give a misleading impression about our business,” an Amway spokesman said in a statement.

The case in which action has been taken was filed in December 2013 and the company was not informed earlier about the action, the spokesperson added.

Condemning the arrest, industry body Ficci said the “uncalled” for action might hit Indo-US business ties, while re-emphasising the need for a clear and independent regulatory framework for the direct selling industry in India.

 
 
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