Monday 25 February 2013

Amway India suffers setback in AP High Court

Amway India has once again received an earful from the Andhra Pradesh High Court on Monday when a larger bench took up the writ petition filed by the tainted company.
Let us recall what the writ petition was about.
Andhra Pradesh State Government issued G.O.M.S. No. 178 of 2008 restraining Amway India from advertising in any media including Internet about its illegal money circulation scheme in the name of good business opportunity.
Amway India, though its writ petitions were dismissed by Andhra Pradesh High Court earlier on the basis of its illegal business model, has once again approached the AP High Court with a writ petition challenging issue of  G.O.M.S. No 178.
After the Corporate Frauds Watch also filed a writ of Mandamus in AP High Court appealing the high court to issue orders to implement the G.O., both the writ petitions were clubbed and were referred to a larger bench on the request of  Amway India.
Everyone in Amway India including its counsel thought that the larger bench would review the earlier judgement which went against Amway India.
However, the Amway India suffered a set back on Monday. The larger bench of High Court ruled there is no need for a larger bench to hear the writ petition and there is nothing to decide further on the judgement.
The High Court ruled that the writ petitions may be referred to earlier Division Bench to decide on the G.O.M.S. No 178 issued by the State Government.
It is anybody's guess what the division bench of the High Court would decide on the G.O. No. 178.

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