Amway India’s attached properties also include a factory in Tamil Nadu. (agent)
New Delhi:
The Enforcement Directorate on Monday said that direct selling consumer goods company Amway India’s assets worth over Rs 757 crore have been attached under the Anti-Money Laundering Act.
The temporarily attached assets of Amway India Enterprises Pvt Ltd include land and factory building, plant and machinery, vehicles, bank accounts and fixed deposits in Dindigul district of Tamil Nadu.
Attached to a property means that it cannot be transferred, altered or transferred.
Of the total assets worth Rs 757.77 crore attached under the Prevention of Money Laundering Act (PMLA), immovable and movable assets are worth Rs 411.83 crore, while the rest are bank balances of Rs 345.94 crore held in 36 accounts belonging to Amway. ,
The Enforcement Directorate accused the company of running a multi-level marketing “scam” where most of the products offered by the company were priced “excessively in comparison to alternative popular products from reputed manufacturers available in the open market”.
“The money laundering probe conducted by the ED has revealed that Amway Direct Selling is running a pyramid fraud under the guise of a multi-level marketing network,” the agency said. Amway India is yet to respond to the allegations.
“Without knowing the actual facts, gullible public are tempted to join as members of the company and buy products at exorbitant prices and thus losing their hard earned money. New members do not buy the products to be used. Rather get rich by becoming a member as shown by the upline members. The reality is that the commission received by upline members contributes a lot to the increase in the prices of the products.”
The agency said, “The entire focus of the company is on promoting how members can become rich by becoming members. There is no focus on the products. The products are used to make this mlm pyramid fraud as a direct selling company. is.”
the government had Direct selling companies banned from promoting pyramid schemes in December, The Consumer Protection (Direct Selling) Rules, 2021 were aimed at protecting the rights of consumers and preventing companies involved in direct selling such as Tupperware, Amway and Oriflame from promoting money circulation schemes.