ED questions Amway over money laundering, attaches assets worth Rs 758 crore

On Monday, the Indian Enforcement Directorate (ED) attached assets worth of Rs 758 crore that are belonging to Amway India Enterprises Pvt, a direct selling company, in relation to a money laundering investigation. The money laundering probe by the ED has revealed that Amway is “running a pyramid fraud in the guise of direct selling multi level marketing network”. The ED added on Monday that the company is accused of operating a multi level marketing scam.

The Enforcement Directorate has alleged that Amway has collected a whooping amount of Rs 27,562 crore through its business operations during period of 2002-03 and 2021-22. From this amount, the company has also paid a commission of Rs 7,588 crore to its pan India distributors and members and also those in the United States, during the same period.

The assets attached by the ED include properties, land and factory building, of the company located in Dindigul district of Tamil Nadu. Moreover, the attached assets also include plant and machinery, vehicles, fixed deposits and bank accounts belonging to Amway. ED has attached immovable and movable properties of Amway worth of Rs 411.83 crore and bank balances amounting to Rs 345.94 crore from 36 different accounts belonging to Amway.

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Britt Worldwide India Pvt Ltd and Network Twenty One Pvt Ltd, the companies that provide training services for Amway, have also come under ED’s radar. “They 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 enrolment 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,” ED said.

ED has further noted that prices of a majority of products in Amway’s line up are unreasonably outrageous as compared to similar products of reputed manufacturers in open market. “The new members are not buying the products to use them, but to become rich by becoming members as showcased by the upline members. The reality is that the commissions received by the upline members contribute enormously in hiking the prices of products,” ED underlined.