ED had provisionally attached immovable and movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway.
ED had provisionally attached immovable and movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway.
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The Enforcement Directorate (ED) on Monday said that has provisionally attached assets worth Rs 757.77 crore belonging to Amway India Enterprises Pvt Ltd. The investigating agency said that the attached properties include land and factory building of Amway at Dindigul District, Tamil Nadu, plant and machineries, vehicles, bank accounts and fixed deposits.
ED had provisionally attached immovable and movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway.
The agency said that a money-laundering investigation by them revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing network.
“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,” the ED said.
The investigating agency said that the company collected an amount of Rs 27,562 crore from its business operations from 2002-03 to 2021-22 and out of the above, the company has paid a commission of Rs 7,588 crore to its distributors and members in India and in the USA during FY 2002-03 to 2020-21.
“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.
It added 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,” it further stated.
Source: https://indianexpress.com/article/business/companies/ed-enforcement-directorate-provisionally-attaches-assets-worth-rs-757-77-crore-belonging-to-amway-india-7874703/