The ED alleged that Amway was 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 Enforcement Directorate on Monday attached assets worth ₹757.77 crores belonging to FMCG Amway India in a money laundering case. According to the probe agency, the firm is accused of running a multi-level marketing scam. The attached properties include land and factory building of Amway in Tamil Nadu’s Dindigul district, plant and machinery, vehicles, bank accounts, and fixed deposits, the ED statement said. Earlier, the central probe agency had provisionally attached immovable & movable properties worth ₹411.83 Crore and bank balances of ₹345.94 Crore from 36 different accounts belonging to Amway.
According to the officials, between 2002-2003 and 2021-2022, Amway collected Rs 27,562 crore through its business operations, of which it paid Rs 7,588 crore as commission to its distributors and members in India and in the US.
In its probe, the ED alleged that Amway was 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.
“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 to the hike of prices of the products,” the probe agency statement read.
यह भी पढ़ें- Amway India पर ED ने की बड़ी कार्रवाई, 757.77 करोड़ रुपये की संपत्ति जब्त, प्रोडक्ट नहीं, मेंबर बनाने पर फोकस
“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,” the ED said.
Amway India, in a statement, said that the action of the authorities was with regards to the investigation dating back to 2011 and that the company has been cooperating with the department and sharing information as sought by the ED from time to time since then.
“We will continue to cooperate with the relevant government authorities and the law officials towards a fair, legal, and logical conclusion of the outstanding issues. However, the recent inclusion of Direct Selling under the Consumer Protection Act (Direct Selling) Rules, 2021, has brought in the much-needed legal and regulatory clarity for the industry, while again confirming Amway India’s continuous compliance with the spirit and letter of all laws and regulations in India. Amway has a rich history of maintaining the highest levels of probity, integrity, corporate governance, and consumer protection, which are much ahead of time in the interest of the consumers at large,” the statement read.
“As the matter is sub judice, we do not wish to comment further. We request you to exercise caution, considering a misleading impression about our business also affects the livelihood of over 5.5 lakh direct sellers in the country,” it added
Samvaad 365, Jyotsana Thapliyal
यह भी पढ़ें- देहरादून के अक्षत जोशी ने जाइलोफोन पर अपनी प्रस्तुति देकर विरासत में लोगो का दिल जिता
