Amway India CEO Bill Pinckney was arrested May 26 in New Delhi, and was taken more than a thousand miles south to the town of Kurnool, where a local judge ordered him into custody until June 7.
Pinckney’s arrest, his second since May 2013, came after a warrant was issued in response to a complaint accusing the direct sales giant of various infractions, including cheating, extortion and irregularities in its business operations in the country.
A Didar Singh, who heads the India industry group Ficci, called Pinckney’s incarceration inappropriate and unwarranted, adding that the complaint should be handled as a consumer redressal rather than a criminal investigation.
Amway, along with the direct selling industry and other groups, has long been lobbying for the country’s government, at both the national and regional levels, to amend the PCMCS Act.
“We are aggrieved and shocked at the sudden and unwarranted act of detention of our official,” Amway India said in a message on its Facebook page. “Due to the lack of a legal framework for the direct selling Industry, any case filed is being misinterpreted. Amway, as a law abiding corporate, has always cooperated in such investigations, and has been responsive to the queries and documentation.”
Amway India maintains that it has not only followed the country’s laws, but has made a significant investment in India including a new $100 million manufacturing facility. The company says it employs 500 workers at its facilities in the country.
