ED attaches assets worth Rs 757.77 crore of Amway India
The attached properties include land and factory building of Amway at Dindigul , Tamil Nadu, plant and machineries, vehicles, bank accounts and fixed deposits.
Chennai: The Enforcement Directorate has 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, plant and machinery, vehicles, bank accounts and fixed deposits.
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.
According to a press release from the ED, a money laundering investigation by the ED revealed that Amway has been 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 release added.
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 the hike of prices of the products.
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 and out of above, the company has paid commission of Rs. 7,588 crore to its distributors & members in India and in USA during the financial year 2002-03 to 2020-21.
The entire focus of the company is about propagating how people 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.