E-Paper
ED attaches assets worth ₹757 crore of Amway India in money laundering case
The ED alleged that Amway was 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.
The Enforcement Directorate on Monday attached assets worth ₹757.77 crore belonging to FMCG Amway India in money laundering case. According to the probe agency, the firm is accused of running a multi-level marketing scam.
The attached properties include land and factory building of Amway at Tamil Nadu's Dindigul district, plant and machineries, vehicles, bank accounts and fixed deposits, the ED statement said.
Earlier, the central probe agency had provisionally attached immovable & movable properties worth ₹411.83 Crore and bank balances of ₹345.94 Crore from 36 different accounts belonging to Amway.
In its probe, the ED alleged that Amway was 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 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,” the probe agency statement read.
“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,” the ED said.
