Govt Initiates Probe Against Amway: Rs 4050 Crore Of Fraud Detected Via Ponzi Scheme


Rohit Kulkarni

Rohit Kulkarni

Nov 27, 2023


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.


Rohit Kulkarni
Rohit Kulkarni
  • 719 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online