ED attaches assets worth Rs 757 crore of Amway India in multi-level marketing scam
New Delhi, April 18: 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, the agency said on Monday.
The attached properties include land and factory building of Amway at Dindigul district in Tamil Nadu, plant and machineries, vehicles, bank accounts, and fixed deposits, said the agency, in a statement. The attached properties include Rs 411.83 crore immovable assets and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway.
A money-laundering investigation by the Enforcement Directorate 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," said the ED.
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The federal agency accused that 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 to the hike of prices of the products," said the ED.
It is observed that the company has collected an amount of Rs 27,562 crore from its business operations from 2002-03 to 2021-22. Out of this, the company has paid a commission of Rs 7588 crore to its distributors and members in India and in the USA during Financial Year 2002-2003 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," said the ED.
Amway has brought Rs 21.39 crore as share capital in India in 1996-97 till Financial Year 2020-21, said the ED, it added, "the company has remitted the huge amount of Rs 2,859.10 crore in the name of dividend, royalty and other payments to their investors and parent entities".
Britt Worldwide India Private Limited and Network TwentyOne Private Limited also played a major role in promoting the pyramid scheme of Amway by conducting seminars for joining members under the guise of sale of goods by the enrolment of members in the chain system, said the central agency.
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"The promoters are conducting mega conventions and flaunted their lavish lifestyle and used social media to lure gullible investors," the ED added.
-PTC News
