The assets have been temporarily attached by the Directorate of Enforcement (ED) and are valued at Rs. 757.77 Crore A business named Amway India Enterprises Private Limited is charged with operating a multi-level marketing fraud. The properties that are attached include Amway’s manufacturing building and property in Tamil Nadu’s Dindigul District, as well as equipment, cars, bank accounts, and fixed deposits. Immovable and mobile assets worth Rs. 411.83 crore and bank balances of Rs. 345.94 crores from 36 distinct Amway accounts were been temporarily seized by ED.
Amway is operating a pyramid scheme under the pretence of a direct selling multi-level marketing network, according to an inquiry into money laundering by the ED. It has been noted that the costs of the majority of the company’s items are astronomical when compared to comparable well-known products made by reputable manufacturers that are sold in the open market. The general naive public is persuaded to join the firm as members and buy things at excessive costs without understanding the true facts, losing their hard-earned money in the process. In contrast to the upline members, the new members are not purchasing the items to use them; rather, they are doing so to join and become wealthy.
In actuality, a significant portion of the increase in product costs may be attributed to the commissions that upline members get.
It has been determined that the firm has received Rs. 27562 crores from its commercial activities from F.Y. 2002-03 to 2020-21, of which Rs. 7588 crores has been paid as commission to its members and distributors in India and the USA.
The company’s entire mission is to spread the message that by joining, members may increase their wealth. The items are not the main emphasis. To pass for a direct selling business, this MLM pyramid scam uses products.
Up to F.Y. 2020-21, Amway handed investors and parent corporations a staggering Rs. 2859.10 crores in dividends, royalty, and other payments. Amway invested Rs. 21.39 crores as share capital in India in 1996-1997.
Through holding seminars for joining members under the premise of the sale of goods by enrollment of members in the chain system, M/s. Britt Worldwide India Private Limited and M/s. Network Twenty-One Private Limited also played a significant part in spreading the Amway pyramid scam. To entice naive investors, marketers hold massive conferences, display their opulent lifestyles, and use social media.
