Investigation had revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing network
Mumbai, NFAPost: The Enforcement Directorate (ED) has provisionally attached assets worth Rs 757.77 crore of Amway India Enterprises Private Limited, a company accused of running a multi-level marketing scam.
The attached properties include its land and factory building at Dindigul District, Tamil Nadu, plant and machineries, vehicles, bank accounts and fixed deposits. ED had provisionally attached movable and immovable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts.
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 its most of the products prices are exorbitant compared to the alternative popular products available in the open market. Without knowing the facts, the gullible public are induced to join as members of the company.
“It is observed that the company had collected Rs 27,562 crore since its business operations from 2002-03 to 2021-22 and had paid Rs 7,588 crore commission to distributors and members in India and the USA,” ED said.
“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,” it added.
Amway has brought Rs 21.39 crore as share capital in India in 1996-97 and till F.Y 2020-21, it had remitted Rs 2,859.10 crore as dividend, royalty and other payments to their investors and parent entities.
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.
When contacted a company spokesperson said, “The action of the authorities is with regards to the investigation dating back to 2011 and since then we have been co-operating with the department and have shared all the information as sought for from time to time since 2011. We will continue to cooperate with the relevant government authorities and the law officials towards a fair, legal, and logical conclusion of the outstanding issues.”
