A court in the south Indian city of Kerala has granted bail to William S Pinckney, the chairman and Chief Executive Officer and two other senior directors of direct marketing firm Amway.

The bail was granted just hours after the court remanded them to judicial custody. The Crime Branch of the Economic Offences Wing in Kozhikode had arrested three persons yesterday relating to a fraud cases registered in the Wayanad district. Kalpetta Judicial First Class Magistrate N Ravishankar had remanded them for 14 days after they were booked under the Prize Chits and Money Circulation Schemes (Banning) Act following complaints by two persons in 2011.

The Kerala police had carried out raids at nine Amway centres in three districts in its investigations relating to the money chain activities and cheating involving such schemes. The police had arrested the area manager of Amway in the state, PM Rajkumar, in November 2012.

The company responded by saying that it is aggrieved and shocked at the sudden and unwarranted act of detention of its officials even after it is cooperating with the investigations. Anway also said that it is responding to queries and documentation requests of the police.