ED attached assets worth Rs.757.77 Cr belonging to Amway India

The Enforcement Directorate (ED) has attached assets worth Rs.757.77 crore belonging to M/s. Amway India Enterprises Private Limited, a company accused of operating a multi-level marketing scam. The attached properties include Amway’s land and factory building in Dindigul District, Tamil Nadu, as well as plant and machinery, vehicles, bank accounts, and fixed deposits. The ED had temporarily attached immovable and movable properties worth Rs 411.83 crore and balance sheets worth Rs 345.94 crore from 36 different Amway accounts.

An ED money laundering investigation revealed that Amway is operating a pyramid scheme under the guise of a direct selling multi-level marketing network. It has been observed that the prices of the majority of the products offered by the company are exorbitant when compared to alternative popular products from reputable manufacturers available on the open market. Without knowing the true facts, the general gullible public is persuaded to become members of the company and purchase products at exorbitant prices, resulting in the loss of their hard-earned money. The new members are not purchasing the products to use them, but to become wealthy by becoming members, as demonstrated by their upline members. The reality is that the commissions received by upline members contribute significantly to the increase in product prices.

It is observed that the company has collected an amount of Rs. 27562 Crore from its business operations from 2002-03 to 2021-22, and out of this amount, the company has paid a commission of Rs. 7588 Crore to its distributors and members in India and the United States between fiscal years 2002-03 to 2020-21.

The company’s entire focus is on spreading the word about how members can become wealthy by becoming members. The emphasis is not on the products. Products are being used to disguise this MLM Pyramid scheme as a direct selling company. Amway brought Rs. 21.39 Crores as share capital in India in 1996-97, and the company has remitted a massive amount of Rs. 2859.10 Crore in dividend, royalty, and other payments to their investors and parent entities up to F.Y 2020-21.

M/s. Britt Worldwide India Private Limited and M/s. Network Twenty One Private Limited also played an important role in promoting Amway’s pyramid scheme by holding seminars for joining members under the guise of selling goods by enrolling members in chain system. The promoters are holding mega conventions, flaunting their luxurious lifestyle, and using social media to entice gullible investors.