The Enforcement Directorate (ED) has submitted a charge sheet in a money laundering investigation against health and beauty company Amway India Pvt Ltd, linking assets valued at ₹757 crore to the company. Amway India, engaged in multilevel marketing (MLM), recruited numerous individuals nationwide into its marketing program, offering them commissions on high-priced cosmetic products and assigning them the task of recruiting additional members.
ED Charges Amway India in Money Laundering Scheme: Allegations of Pyramid Fraud and Asset Attachments
The ED’s charge sheet alleges that Amway India operated a multi-level marketing and money circulation scheme, accumulating substantial amounts of money from its subscribers. The agency identified proceeds of crime amounting to ₹4,050 crore within the company. The ED has attached both movable and immovable assets totaling ₹757 crore to Amway India. The agency previously stated that Amway’s primary focus was on promoting how members could become wealthy by joining, rather than emphasizing the products.
Amway India’s products were allegedly used to masquerade as multilevel marketing schemes across the country, leading to a significant pyramid fraud. The investigation is being conducted under the Prevention of Money Laundering Act (PMLA).
Amway India’s Response to ED’s Attachments: Defending Business Practices Amid Regulatory Scrutiny
In 2022, the ED had already attached substantial sums to 36 different accounts of Amway India, including immovable and movable properties worth ₹411.83 crore and a bank balance of ₹345.96 crore. Despite the controversy, the MLM firm defended its business, asserting that the investigation dated back to 2011, and they have been complying with all regulatory requirements since then.
In an official statement, Amway India emphasized that the authorities’ actions pertain to an investigation that originated in 2011. The company affirmed its ongoing cooperation with the relevant government authorities and law officials, expressing commitment to a fair, legal, and logical resolution of the outstanding issues.