04/19/2022
The Enforcement Directorate has seized Amway India's assets related to a money-laundering investigation. The agency revealed that Amway has been running a pyramid fraud pretending to be a direct selling multi-level marketing network.
Amway is propagating how people can become rich by becoming its members but there is no focus on the products. They are only being used to portray pyramid fraud as a direct selling company.
The ED has provisionally attached assets worth Rs 757.77 crore including land and factory buildings at Dindigul District in Tamil Nadu, plant and machinery, vehicles, bank accounts, and fixed deposits, reported The Indian Express. Immovable and movable properties worth Rs 411.83 crore and bank balances of Rs 355.94 crore from 36 countries have been seized.
Amway India has collected an amount of Rs 27,562 crore from the business operation from 2002-03 to 2021-22. A commission of Rs 7,588 crore has been paid to its distributors and members. The investigation agency revealed that the prices of most products offered by Amway are "exorbitant" compared to the alternative popular products of reputed manufacturers in the open market.
The public is induced to join Amway as members and purchase products at higher prices. They are losing their hard-earned money. New members are buying products to look like the upline members who receive commissions. This commission is contributing to the enormous hikes in the prices of the products, said ED.
The agency stated that Amway bought Rs 21.39 crore as share capital in India in 1996-1997 and till 2020-2021. It has remitted Rs 2,859 crore in dividends, royalty, and other payments to its investors and parent entities. The promoters conduct conventions to flaunt their lifestyle and attract commoners.
