I will be organizing this much better as time goes on.
The following paragraphs established that how Raja Naren, a diamond, made several hundreds of thousands of rupees every year without purchasing a single product. In his rejoinder, Shri B. Adinarayana Rao counsel for the petitioner Amway India reiterated that the Government of India has not taken a specific stand that the business activity of petitioner No.
He referred to the instance pertaining to Accused No. The learned counsel submitted that the commission credited to a sponsor on the purchases made by the downline distributors is only one of the components of the payments received by the sponsor members.
The learned counsel then submitted that even if the Court comes to the conclusion that Section 2 c is attracted in the case of the petitioners, they cannot be forced to close the business till the conclusion of the criminal proceedings and indiscriminate seizure of products being effected by the police should be declared illegal and nullified.
We shall now examine whether on the admitted facts and the material available on record, the scheme envisaged by petitioner No. The purported theme behind the scheme appears to be direct selling which means sale of products to the customers by the distributors of the company without there being any wholesaler or retailer.
It is explained in the affidavit filed in support of the writ petition that a person becomes a distributor by purchasing a business kit at a cost of Rs.
In this process, the distributors are provided with incentives. It is explained therein that distributors can generate income in two ways, namely; 1 by earning retail sales profit, and 2 through performance incentive; that the distributors purchase products from Amway at distributors cost and then sell these products at higher price not more than printed MRP which is the retail sales profit.
As regards performance incentive, it is appropriate to extract the relevant portion of the brochure: Your earnings would be proportionate to your efforts. PV Point Value is a unit amount assigned to each product.
It is an effort index, which puts emphasis on the units sold and not the selling price. Each month the PV is totaled in order to determine the performance incentive bracket. BV Business Volume is a monetary figure assigned to each product. In order to calculate the Performance Incentive, the percentage amount determined by total PV is applied to the total BV for the month.amway is a world-wide leader in health, beauty, and an outstanding business opportunity for independent business owners.
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