New Delhi: The Enforcement Directorate (ED) has attached assets worth Rs 757.77 crore belonging to Amway India Enterprises Private Limited — a company accused of running a multi-level marketing scam, in connection with a money laundering case.
The attached properties include land and factory building of Amway in Tamil Nadu’s Dindigul district, plant and machinery, vehicles, bank accounts and fixed deposits.
The ED had recently 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.
A money laundering investigation by the ED revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing networks.
It was 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 was observed that the company has collected an amount of Rs 27,562 crore from its business operations from 2002-03 to 2021-22 and out of the above, the company has paid commission of Rs 7,588 crore to its distributors and members in India and in the US during FY 2002-03 to 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.