Friday 7 February 2014

Proposed Kerala State legislation on 'MLM direct selling,' is fundamentally flawed and dangerous.

As part of a pattern of ongoing, major racketeering activity (that now stretches back at least 60 years), in June 1994, representatives of the US-based ‘Amway’ crime families approached the Indian Ministry of Commerce and Industry  (Dept. of Industrial Development) bearing gifts.

By steadfastly pretending affinity with officials (who, naturally, wanted to believe that all external investment creates employment), the ‘Amway’ crime families initially sought an agreement (renewable biannually) which simply paved the way for the creation a privately-controlled, unlimited-liability, commercial company, ‘Amway India Enterprises.’ As a subsidiary (entirely owned by its American parent company), the representatives of the ‘Amway’ racketeers meekly accepted that ‘Amway India Enterprises’  would be forbidden to manufacture or import. The proposed company would be permitted only to use its Multi-Level Marketing Business Model’ to sell products sourced from local, independent, Indian manufacturers. Furthermore, ‘Amway India Enterprises’ was obliged to file a separate agreement with the Reserve Bank of India, allowing the proposed subsidiary to transfer capital to, and from, its parent and, thus, act as a de facto, foreign exchange dealer. 


Consequently, without any informed scrutiny, officials at the Indian Ministry of Industry, Secretariat for Industrial Approval (Foreign Collaborations II Section) rubber-stamped the application for the proposed 'Amway' company (within less than two months) on August 26th 1994.

Twelve months later, 'Amway India Enterprises' was legally-registered after final approval by the Indian 'Foreign Investment Promotion Board.'

In this way, America’s contemporary version of the Trojan Horse was dragged unnoticed into India with the assistance of the country’s own na├»ve regulators. However, it lay dormant until May 5th 1998 when a network of regional offices began to be established. 

Six years later, the destructive contents finally began to spill out. On August 8th 2004, the (apparently safe) original (biannual) agreement was mysteriously altered (at the request of the corporate officers of Amway India Enterprises’) allowing the unregulated manufacture, and/or importation, of ‘Amway’s’ own range of effectively-unsaleable household, beauty and health products.

At no stage did Indian officials bother to apply common-sense and ask how the so-called MLM Business Opportunity’ could possibly be economically-viable, and lawful, when ‘Amway’ products were now, self-evidently, several times the price of equivalent (and often superior) merchandise widely-available in traditional Indian retail outlets? Yet, implicit to the modified agreement was the understanding that Amway India Enterprises’ would respect Indian law and recruit non-salaried agents who could earn commission payments from retailing products to the public. In plain language, Indian officials were deceived by the de facto agents of US-based racketeers. 

That said, it is not known what other inducements (if any) these conveniently-blind civil servants received.

The guts of above information comes from a landmark judgement given on July 19th 2007 against ‘Amway India Enterprises’  by Chief Justice G.S. Singhvi, and Justice C.V. Nagarjuna Reddy, of the High Court of Judicature, Andhra Pradesh, Hyderabad.

In 2006, the Criminal Investigations Dept. of theHyderabad police raided, and sealed, the local offices of ‘Amway India Enterprises’ arresting various employees, following a particularly detailed complaint filed by A.V.S. Satyanarayana under the ‘Prize Chits and Money Circulation (banning) Act, 1978.’ This courageous individual confessed that he had been deceived into wasting a significant amount of time and money after having being subjected to overwhelming psychological pressure to join ‘Amway’ by two dominant men in his own social circle. Within three days of the registration of this complaint, aggressive lawyers acting for Amway India Enterprises’ issued two writs against the Hyderabad CID. Typically, ‘Amway’ posed as the innocent victim under attack. Ignoring all quantifiable evidence to the contrary, the lawyers steadfastly pretended that their employer’s ‘MLM Business Opportunity was entirely legal and that ‘Amway India Enterprises’ was acting with the full-approval of the Indian government. Therefore, the Andhra Pradesh police had neither reason nor authority to launch such a heavy-handed investigation, and, thus, damage, a legitimate business. At the same time, both the lawyers and corporate officers of ‘Amway India Enterprises’ tried to convince the world that Satyanarayana was a pathetic liar who had filed a malicious complaint as the result of a marital/financial dispute which had, itself, resulted in his pursuing a vendetta against members of his family who were ‘Amway Distributors.’ Ironically, it was ‘Amway India Enterprise’s’ own malicious writs which brought the company under the rigorous scrutiny of the Andhra Pradesh High Court.

Simply by applying common-sense, Chief Justice Singhvi and Justice Reddy were immediately able to see that the ‘Amway MLM’ fairy story is far too good to be true. Then, by ignoring the scripted-lies of ‘Amway’s’ attorneys, and by concentrating on the compelling testimony of the victim (backed up by documentary evidence), they deduced that the so-called MLM Income Opportunity’ is in breach of Indian legislation. Despite the mystifying, linguistic and mathematical complexity of ‘Amway’s’ corporate camouflage, de facto agents of the company actually propagate the self-gratifying delusion that limitless prosperity can eventually be obtained without any further effort simply by regularly purchasing products and recruiting others to do the same, etc., ad infinitum. As a consequence, the two writs were dismissed, and the High Court of Andhra Pradesh ordered that the Hyderabad Criminal Investigation Dept. should be allowed to continue to follow whatever procedures are permitted by law to hold the corporate officers of  ‘AmwayIndia Enterprises’ to account.

Yet, seven
 years later, despite the boss of 'Amway India Enterprises' being arrested for, and charged with, fraud in the Indian State of Kerala in 2013, amazingly, the 'MLM Income Opportunity' virus still continues to infect India, whilst India legislators continue to be approached by the representatives of US-based racketeers who, obviously, do not wish to have their real activities rigorously investigated by independent Indian law enforcement agents. 

Self-evidently, the main beneficiaries of the ‘Amway’ racket in India, have not been Indian citizens. Like the Empress of India in the 19th. century, the fabulously-wealthy bosses of the ‘Amway’ Empire have ruled from a safe distance.

The Kerala State Multi Level Marketing (Control and Regulation) Bill, 2013 (Draft)

As per G.O. (MS) No.3/2013/ID dated 10.01.2013, the Government has constituted a Committee headed by the Secretary (Industries), consisting of the representatives of the Law Department, Home Department, Commercial Taxes Department and the Consumer Affairs Department for examining all relevant aspects concerning the direct marketing in the State and for preparing a draft Bill for the consideration of the Government.
The final draft Bill approved by the Committee has been submitted for the 
consideration of the Government.
UNDER G.O.(MS) NO.3/2013/ID DATED 10.01.2013.

Suggestions / recommendations are invited from the public and stakeholders :
Postal Address:       The Principal Secretary to Government,
                                 Industries (B) Department
                                 Government Secretariat
                                 Thiruvananthapuram – 695 001.
Last date:                 15.02.2014 (till 5.15 PM)


In response to the above appeal, today the following suggestion was sent to the Principal Secretary to Government, Industries (B) Department Government Secretariat Thiruvananthapuram – 695 001.
I regret to inform you, but this proposed Kerala legislation is fundamentally flawed and dangerous, because it contains the classic meaningless definition of MLM direct selling which has obviously been fed to ill-informed legislators in Kerala by the agents of US-based 'income opportunity' racketeers:

“multi-level marketing” or “direct selling” means marketing and sale of goods or providing services of a multi-level marketing entity through direct sellers or
through direct sellers and distributors, otherwise than through shops, to the
customers or consumers, generally in their houses or at their workplace or

through explanation and demonstration of such goods and services at a
particular place or by mail order sale;

In order for any Indian legislation to have a chance of functioning and protecting the Indian public, legislators must first demonstrate that they have a clear understanding of the universal characteristic that identifies the presence of fraud dissimulated as 'MLM direct selling.' i.e. An absence of significant, regular retail sales to the general public (based on value and demand).

Thus, any common-sense legal definition of direct selling, must not contain the misleading jargon terms, 'Multi-Level Marketing
' and 'customers and consumers,' but should clearly state that :

A lawful, economically-viable direct selling scheme is one sponsored by persons who can (on request) immediately provide quantifiable evidence that the overwhelming majority of the scheme's declared 'sales' have, in fact, always been authentic transactions comprising the regular retailing of goods, and/or services, directly to the general public (based on value and demand) via commission-agents: and not an economically-unviable money circulation scheme, pyramid fraud or closed-market swindle, largely-comprising losing investment payments made by a never-ending chain of ill-informed participants (based on the false-expectation of future reward), but laundered as 'sales' by the sponsors who have arbitrarily, and falsely, defined the never-ending chain of losing investors as 'independent distributors/customers/consumers/end users, members,  etc.' and supplied these persons with over-priced effectively-unsaleable commodities (often of a dubious pseudo-medical nature), and/or over-priced effectively-unsaleable services, in order to dissimulate their criminal objectives and obstruct investigation/prosecution. 

Yours sincerely 

David Brear (copyright 2014)


New readers should be aware that subsequent to the intervention of India's Corporate Affairs Minister, Sachin Pilot, after the arrest of the head of 'Amway India Enterprises,' William Pinckney and two associates, I posted an article in which I asked the following common-sense question:

'Is Sachin Pilot fit to hold office in the world's largest democracy?'

'Income Opportunity' racketeer, William Pinckney, arrested for fraud.

As a result of his thoughtless, and dangerous,  statements in defence of the'Amway' racket, Corporate Frauds Watch has served a legal notice on the Indian Corporate Affairs Minister, Sachin Pilot.

Sachin Pilot

If these proceedings ever come to court, there are several questions which I personally want to put to Sachin Pilot:

  • Why have you not called for the establishment a common-sense definition of:

1). an authentic direct selling company -

i.e. a corporate structure which can produce quantifiable evidence that the bulk of its declared 'annual sales revenue' has always derived lawfully via sales agents having regularly retailed goods, and/or services, to the general public for a profit, based on value and demand?

2). a fake direct selling company -

i.e. a corporate structure which has deliberately hidden the quantifiable evidence that the bulk of its declared 'annual sales revenue' has always derived unlawfully via a never-ending chain of losing de facto slave recruiters regularly handing over their money in return for effectively-unsaleable goods, and/or services, based on the false-expectation of future reward?

  • Are you seriously recommending that Indian citizens should hand over their money each month to demonstrably fake direct sales companies like 'Amway,' and to try to recruit everyone whom they know to do the same, as a viable means of generating extra income?


  • What would be your reaction if you witnessed that a member of your own family, or a close friend, had begun to hand over his/her money to 'Amway' each month, and was trying to recruit everyone whom he/she knows to do the same, under the dangerous self-perpetuating delusion that this is 'a proven plan to achieve total financial freedom?'

Sachin Pilot's reactions to the above questions, will determine if he is fit to hold office in the world's largest democracy; for what is actually at stake here, is whether American-based billionaire racketeers will be effectively placed above the criminal law and, thus, permitted to thieve from the people of the Indian republic for decades to come.

That said, I strongly suspect that Sachin Pilot is just another pretty little pawn in a reality-inverting cultic game of make-believe - a fact which, for obvious reasons, he hasn't even begun to understand, 

David Brear (copyright 2014)

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