Amway Accused Of Money Laundering, Running Pyramid Scheme; ED Attaches Rs 757 Crore Of Their Assets
In a money laundering case, assets worth Rs 757.77 crore belonging to FMCG Amway India have been attached by the Enforcement Directorate.
The firm is accused of running a multi-level marketing scam according to the probe agency. The attached properties include land and factory building of Amway at Tamil Nadu’s Dindigul district, plant and machineries, vehicles, bank accounts and fixed deposits, the ED statement said.
Assets Worth Rs 757.77 crore
From 36 different accounts belonging to Amway, the central probe agency had provisionally attached immovable & movable properties worth Rs 411.83 Crore and bank balances of Rs 345.94 Crore.
ED alleged, in its probe, that Amway was running a pyramid fraud in the guise of direct selling multi-level marketing network. It is also observed that the prices of most of the products of Amway are exorbitant as compared to the alternate products even from reputed manufacturers.
MLM Pyramid Fraud Scheme
The statement of the probe agency read that “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 that “The entire focus of the company is about propagating how members can become rich by becoming members. There is no focus on the products. Products are used to masquerade this MLM Pyramid fraud as a direct selling company”.