ED attaches assets worth Rs 755.77 crore belonging to Amway India
Enforcement DirectorateFile photo

ED attaches assets worth Rs 755.77 crore belonging to Amway India

New Delhi, April 18, 2022

The Enforcement Directorate (ED) today said it had provisionally attached assets worth Rs 757.77 crore belonging to Amway India Enterprises Private Limited, a company accused of running a multi-level marketing scam.

The attached properties include land and factory building of Amway in Dindigul district of Tamil Nadu, plant and machinery, vehicles, bank accounts and fixed deposits, a press release from the agency said.

"ED had provisionally attached immovable and movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway, it said.

According to the release, a money laundering investigation by the ED revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing network.

"It is observed that the prices of most of the products offered by the company are exorbitant as compared to the alternative popular products of reputed manufacturers available in the open market. Without knowing the real facts, the common gullible public is induced to join as members of the company and purchase products at exorbitant prices and are thus losing their hard earned money.

"The new members are not buying the products to use them, but to become rich by becoming members as showcased by the upline members. Reality is that the commissions received by the upline members contribute enormously in hike of prices of the products," it said.

The release said that it was observed that the company had collected an amount of Rs 27,562 crore from its business operations from 2002-03 to 2021-22 and, out of that, it had paid commission of Rs 7588 crore to its distributors and members in India and in the United States between the financial years 2002-03 and 2020-21.

"The entire focus of the company is about propagating how members can become rich by becoming members. There is no focus on the products. Products are used to masquerade this MLM Pyramid fraud as a direct selling company.

"Amway has brought Rs. 21.39 crore as share capital in India in 1996-97 and till F.Y 2020-21, the company has remitted huge amount of Rs. 2859.10 crore in the name of dividend, royalty and other payments to their investors and parent entities," the release said.

"Britt Worldwide India Private Limited and Network Twenty One Private Limited also played a major role in promoting pyramid scheme of Amway by conducting seminars for joining members under the guise of sale of goods by enrollment of members in chain system. The promoters are conducting mega conventions and flaunted their lavish lifestyle and used social media to lure gullible investors," the release added.

NNN

Related Stories

No stories found.

Latest Stories

No stories found.

Trending Stories

No stories found.