Amway's affidavit claims

Stick to facts, only facts, nothing but facts
The recent writ petition of 2008 filed by Amway India claims that it has 4,50,000 distributors. The same figure was quoted in the counter affidavit filed by Amway India in the writ petitions of 2006. Taking them on the face value, one has to assume that the membership of Amway India remained stagnant for the last three to four years. Surprisingly, the Amway adherents boast that it is wonderfully flourishing with more members and the business volume has increased enormously. That means someone is lying.
If the 2008 writ petition's claims are true, the Amway India's business is stagnant. If not Amway India is liable for prosecution for misleading the court with false numbers.
Meanwhile, the Amway India's counsels have yet to file the counter affidavit in the writ petition of 2009 filed by Corporate Frauds Watch. That shows the Amway India and its counsels developed cold feet and are deeply afraid even to file the counter affidavit.


Amway's affidavit claims its IBO base is 4.5 lakh
Amway India and one of its IBOs Mr G B Triveni Prasad of Secunderabad filed a writ peititon in the Andhra Pradesh W.P.No 21284 of 2008 challenging the Government Order 178 of 2008 after Corporate Frauds Watch insisted action against Amway India when it flouted the government order. The authorised signatory of Amway India Mr Sandeep Prakash filed the affidavit.
In the Para 12 (ix), the petitioner claimed that "Within ten years of its commercial opeations in India, the petitioner's business system has caught the imagination of the people all over India inasmuch the present now has an active distributor network of 4,50,000 across the country."
It is proved that its base has remained unchanged from 2006.
In the Para 12 (x), it was claimed that "The petitioner has achieved a sales turnover of Rs. 800 crore in the year 2007-08 and contributed approximately Rs. 200 crore to the State Exchequer in the form of taxes, during the last financial year. "
The petitioner claims in the Para 14, "That it may be pertinent to mention that Petitioner is a purely entrepreneurial venture with the aim of spreading its base, vocation to the distributor and providing quality products to the consumers. The direct selling method with the Petitioner's model minimises the overheads and advertitising budgets to give profits from such areas to the distributors."
In such case, the Petitioner i.e. Amway India should be happy when the government restricted it from advertising to save more money for its distributors. What is the necessity of challenging the government order?


Amway's distributor figures are exaggerated
Shyam
I'm sure you, and your free-thinking readers, are fully-aware that trying to conduct a rational debate with obedient 'Amway' crew members, on the outward tack of their guided-cultic voyage to ruin, is a pointless waste of time. Although they have been given the illusion that they made a free-choice to sign-up, unquestioning 'Amway' cabin-boys, like young Trivedi, have been subjected to coordinated devious techniques of social, psychological and physical persuasion designed to shut down their critical and evaluative facutlies. Trivedi has self-evidently been programmed only to accept misinformation coming from the 'Amway' Ministry of Truth. Typically, core-'Amway' adherents are like persons who have fallen head-over-heels in love. They misinterpret the ego-destroying fact that no one makes money in 'Amway' (apart from its bosses) as a threat to achieving future redemption in the 'Amway' Utopia. In the closed-logic 'Amway' belief system, the truth and truth-tellers are systematically condemned and excluded as 'Negative.'
The narcissistic bosses of pernicious cultic groups like 'Amway' and 'Scientology' always project their fantasies of unlimited success and power as reality. Currently, 'Scientology' proudly proclaims '8 Millions Believers Worldwide': 'Amway, 3 Millions'. The former poses as the 'World's Fastest-Growing Religion and Self-Betterment Movement,' the latter as one of the 'World's Largest Direct Selling Companies.'
In the adult world of quantifiable reality, the best available estimates (from European government agencies) are that there are less than 50 000 long-term adult core-adherents of the 'Scientology' myth. Indeed, a significant percentage of 'Scientology's' claimed 'believers' turn out to be persons unfortunate enough to have been born into the movement. Since its instigation in the early 1950s, the overwhelming majority of individuals who have become involved with 'Scientology' have abandoned the organization. They have, in fact, been churned through one of the most profitable pseudo-scientific swindles and related-advanced fee frauds of the modern era.
Similarly, the best available estimates (based on 'Amway's' own figures) reveal that since the late 1950s, although tens of millions of annual contracts have been signed with 'Amway', the number of persistent core-adherents (who have continued to renew their annual contract for more than 5 years) has never been more than 1% of the current, overall numbers claimed. In other words, 'Amway's 'Distributor figures' are meaningless drivel, maliciously exaggerated in order to perpetrate fraud and shield a pattern of racketeering activity. For, in the end, even the tiny few 'Admired and Respected' members of the core-group mysteriously vanish from the '100% Positive Amway' propaganda. Sadly, Trivedi's chances of passing the rest of his days basking safely in the future 'Amway' Utopia (where everyone is 'prosperous, happy and free') are (effectively) zero.
Currently, Trivedi is unconsciously both perpetrator and victim of one of the most profitable pseudo-scientific swindles and related-advanced fee frauds of the modern era. His emotionally-driven ego prevents his higher intellectual faculties from facing this ugly reality, and perhaps it always will.


Indian Union Ministry of Finance pointed out at Amway fraud in 2002
The Union Minister of State in the Ministry of Finance & Company Affairs, Mr Ananda Rao V. Adsul in a written reply to the unstarred question No. 4889 asked by the Members of Parliament Messrs Ravindra Kumar Pandey, Dr S Venugopal, Dr M V V S Murthi and Mr Ram Mohan Gadde, said:
"Reserve Bank of India (RBI) has reported that it had examined the scheme of M/s Amway India Enterprises (AMWAY) in March 2001 and again in May 2002 aiming at creating a chain of distributors and taken a view that the said scheme appears to be a prize chit or money circulation scheme as defined in and prohibited under the Prize Chits and Money Circulation Schemes (Banning) act, 1978. The offences under the said Act are cognizable and the police authorities of the concerned State Governments have to investigate and take a view whether the scheme of Amway India attract the prohibition under the said Act.
Amway had made representation to the Minister (Economic), Embassy of India in Washington DC that its schemes are not covered under the Act. RBI had once again examined the matter and it had advised to the Embassy that the Amway's activities appear to attract the provisions of the Prize Chits and Money Circulation Schemes (Banning) act, 1978. RBI has forwarded a report in this regard to the police authorities who are empowered under the Act for taking necessary action. "
The notable point here is that the Union Minister of State stated the above statement on the Floor of Parliament on December 20, 2002, and the respective State governments have yet to act on the orders of the Reserve Bank of India and the Union Ministry of Finance.
This is the state of affairs in India.