New Delhi, Apr 19: Over alleged “multi-level marketing (MLM) scam” against Amway India Enterprises Pvt Ltd, the Enforcement Directorate (ED) on April 18 has attached assets worth Rs 757.77 crore belonging to the former Chain-Marketing Organisation.
In an agency statement the ED has listed the attached properties, which includes: land and factory building of Amway at Dindigul district in Tamil Nadu; plant and machinery vehicles, bank accounts and fixed deposits.
“Immovable and movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway attached”, it added, noting that the seizures have been made under the Prevention of Money Laundering Act (PMLA).
According to ED, the prices of most of the Amway products are “exorbitant as compared to the alternative popular products of reputed manufacturers available in the open market”.
The agency claimed that, between FY2003 and FY2022, the company collected an amount of Rs. 27,562 crore. Out of this, they paid a commission of Rs 7.588 crore to their affiliated members and distributors in the United States and India, it added.
“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,” ED said.
Amway’s modus operandi, the agency alleged, is about aggressively propagating how the general public could become richer by becoming its member. The products it offers are used to cover up this “MLM pyramid fraud” by showcasing the company as a direct selling brand, it said.
