News Karnataka
Sunday, January 29 2023

ED attaches assets of Amway worth Rs 757.77cr

ED, money laundering
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New Delhi: The Enforcement Directorate (ED) on Monday said it 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 machineries, 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 network.

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.

Amway has brought Rs 21.39 crore as share capital in India in 1996-97 and till FY 2020-21, the company has remitted 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 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 the gullible investors.

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