‘Pyramid fraud’: ED attaches assets worth Rs 757.77 cr belonging to Amway

Hyderabad: Enforcement Directorate (ED) has provisionally attached assets worth Rs 757.77 crore belonging to M/s Amway India Enterprises Private Limited.

A release here said that the attached properties include land and factory building of Amway at Dindigul District, Tamil Nadu, Plant & Machineries, vehicles, bank accounts and fixed deposits.

ED had provisionally attached immovable & movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 Crore from 36 different accounts belonging to Amway.

A money laundering investigation by the ED revealed that "Amway is running a pyramid fraud in the guise of direct selling multi-level marketing networks". 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 the hike of prices of the products.

It is observed that the company has collected an amount of Rs 27,562 crore from its business operations from 2002-03 to 2021-22 and out of above, the company has paid commission of Rs 7,588 crore to its distributors & members in India and in USA during FY 2002-03 to 2020-21.

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.

Amway has brought Rs 21.39 crores as share capital in India in 1996-97 and till FY 2020-21, the company has remitted huge amounts of Rs. 2859.10 crore in the name of dividend, royalty and other payments to their investors and parent entities.

M/s Britt Worldwide India Private Limited and M/s 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 sale of goods by enrollment 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. (UNI)