ED attaches Amway India assets worth Rs 758 cr in money-laundering probe

ED has accused the firm of running a pyramid fraud in the guise of direct selling multi-level marketing network

The Enforcement Directorate (ED) on Monday attached assets worth Rs 758 crore belonging to direct selling company Amway India Enterprises Pvt.

This is in connection with a money laundering probe by the agency which revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing network, ED stated on Monday. It added that the company accused of running a multi-level marketing scam.

According to the agency, the company has collected an amount of Rs 27,562 crore from its business operations between 2002-03 and 2021-22. Of this, it paid commission of Rs 7,588 crore to its distributors and members in India and in the US during during this period.

The attached properties include land and factory building of Amway at Dindigul District, Tamil Nadu, along with plant & 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.

Probe revealed that Amway has brought Rs 21.39 crore as share capital in India between 1996-97 and  2020-21, the company has remitted a sum of Rs 2,859.10 crore as dividend, royalty and other payments to its investors and parent entities.

Britt Worldwide India Pvt Lts and Network Twenty One Pvt Ltd have also come under the agency's lens. They provide training services and products to Amway.

“They  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 enrolment of members in the chain system. The promoters are conducting mega conventions and flaunted their lavish lifestyle and used social media to lure gullible investors," ED said.

ED further observed that that the prices of most of the products offered by the Amway are exorbitant as compared to alternative popular products of reputed manufacturers available in the open market.

“The new members are not buying the products to use them, but to become rich by becoming members as showcased by the upline members. The reality is that the commissions received by the upline members contribute enormously in hiking the prices of products," ED pointed out.

Amway's entire focus is about propagating how members can become rich by becoming members, it said.