The ED has attached assets worth Rs 757.77 crore belonging to Amway India, a company accused of running a multi-level marketing scam.
ED has attached assets worth Rs 757.77 crore of Amway India. (File Photo)
The Enforcement Directorate 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 attached properties include land and factory building of Amway in Tamil Nadu’s Dindigul District, plant and machinery, vehicles, bank accounts and fixed deposits.
Out of 757.77 crore, the immovable and movable properties are worth Rs 411.83 crore whereas the bank balance is to the tune of Rs 345.94 crore from 36 different accounts belonging to Amway.
According to officials, Amway collected Rs 27,562 crore through its business operations from 2002-03 to 2021-22 out of which the company has paid a commission of Rs 7,588 crore to its distributors and members in India and in the USA during the financial year 2002-03 to 2020-21.
ED has alleged that Amway is involved in running a 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, ”said the ED in a statement.
Officials have also alleged that the entire focus of the company is about propagating how people can become rich by becoming members.
During the investigation, according to ED, Amway brought Rs 21.39 crore as share capital in India in 1996-97 and till 2020-21, the company has remitted a 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 the pyramid scheme of Amway by conducting seminars for joining members under the guise of selling goods by enrollment of members in a chain system. The promoters are conducting mega conventions and flaunting their lavish lifestyle and using social media to lure gullible investors, ”added the ED statement.