ED attaches Amway India assets worth ₹757 crore

The Enforcement Directorate (ED) on Monday said it has provisionally attached assets worth ₹757.77 crore belonging to Amway India Enterprises Pvt Ltd for allegedly running a multi-level marketing scam.

The attached properties include land and factory building of Amway in Tamil Nadu's Dindigul district, plant and machinery, vehicles, bank accounts and fixed deposits, the investigating agency said in a statement.

ED has provisionally attached immovable and movable properties worth ₹411.83 crore and bank balances of ₹345.94 crore from different accounts belonging to Amway.

The money-laundering investigation revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing network, the probe agency said.

"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," ED said.

"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 agency added.

ED claimed that the company collected ₹27,562 crore from its business operations from 2002-03 to 2021-22 and out of the above, it has paid a commission of ₹7,588 crore to its distributors and members in India and in the US during FY 2002-03 to 2020-21.

The entire focus of the company is about propagating how members can become rich by becoming members, ED said, adding that there is no focus on the products. "Products are used to masquerade this MLM Pyramid fraud as a direct selling company."

Amway has brought ₹21.39 crore as share capital in India in 1996-97 and till FY 2020-21, the company has remitted ₹2,859.10 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 pyramid scheme of Amway by conducting seminars for joining members under the guise of sale of goods by enrollment of members in chain system. The promoters are conducting mega conventions and flaunted their lavish lifestyle and used social media to lure gullible investors," ED said.