In a massive development, the Enforcement Directorate (ED) on Monday announced that it has attached assets worth over Rs Rs 757.77 crore belonging to Amway India Enterprises Private Limited. The massive crackdown on the well-renowned company Amway India comes after it's name popped up in the Multi-level Marketing (MLM) scam. As per reports, ED has attached assets including Amway's land and factory building at Dindigul in Tamil Nadu, as well as plant and machinery, vehicles, bank accounts, and fixed deposits.
Furthermore, Amway India's attached properties include worth Rs 411.83 crore immovable assets and bank balances of Rs 345.94 crore from 36 distinct accounts. Amway India MLM Scam or Amway India Multi-level Marketing scam has raised many eyebrows among the people of India. Many are wondering what is Multi-level Marketing scam or what is MLM Scam. Those are still wondering what is MLM scam case and how Amway India came under ED's radar can read further:
What is the Amway India MLM Scam case?
As per ED's official statement, a money-laundering probe by the Central economic investigative agency revealed that Amway is executing a pyramid fraud under the pretence of directly selling a 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,” said the ED.
"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 multi-level marketing (MLM) pyramid fraud as a direct-selling company,” the ED further alleged.
Amway India duped the general public under MLM Scam
Furthermore, the Amway India company is alleged to have duped many people in India under the MLM scam case. The federal agency claims that the general public is duped into becoming members of the Amway India company and purchasing products at exorbitant prices, causing them to lose 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 to the hike of prices of the products,” said the ED.
Reports suggest that from 2002-03 to 2021-22, the firm obtained a total of Rs 27,562 crore through its business operations. During the financial years 2002-2003 to 2020-21, the company paid a commission of Rs 7,588 crore to its distributors and members in India and the United States.
The ED further alleged that, Britt Worldwide India Private Limited and Network TwentyOne Private Limited played an eminent role in marketing Amway's pyramid scheme by hosting seminars for joining members under the pretence of selling items via enrolling 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,” the ED added.