Major ED action on Amway India, property worth 757 crores seized, accused of running pyramid fraud under the guise of network marketing
New Delhi: Network marketing company Amway India has suffered a major setback. ED has attached assets worth Rs 757.77 crore of Amway India. Amway India is accused of running a multi-level marketing scam. The properties that have been seized include company’s land, factories, plants and machinery, vehicles, bank accounts and FDs in Tamil Nadu’s Dindigul district. ED has attached immovable and movable assets worth Rs 411.83 crore of Amway. Apart from this, bank balance of Rs 345.94 crore has been temporarily attached from 36 different accounts.
Amway is running pyramid fraud
A money laundering probe conducted by the ED revealed that Amway is running a pyramid fraud under the guise of a direct selling multi-level marketing network. It has been observed that the prices of most of the products offered by the company are exorbitant as compared to the popular products of reputed manufacturers available in the open market. Without knowing the actual information, the common man is tempted to join as the members of the company and buy the products at exorbitant prices and thus lose his hard earned money. New members are not buying products to use them, but want to become rich by becoming members, which is the dream old members show them. The reality is that the commission received by the old members contributes a lot to the increase in the prices of the products.
Company is paying huge commission
It is seen that the company has collected Rs.27562 crores from its business from the year 2002-03 to 2021-22. Out of this, the company has given a commission of Rs 7588 crore to its members and distributors in India and America. The entire focus of the company is on promoting how people can become rich by becoming a member. The company doesn’t care about the products. The products are used to disguise this mlm pyramid fraud as a direct selling company.
Such amount given in dividend and royalty
Amway has brought in Rs 21.39 crore as share capital in India from FY 1996-97 to FY 2020-21. At the same time, the company has given Rs 2859.10 crore to their investors and parent entities in the name of dividend, royalty and other payments.
Show off the lavish lifestyle
Brit Worldwide India Pvt Ltd and Network Twenty One Pvt Ltd have also played a major role in promoting Amway’s pyramid scheme by conducting seminars for new members to the chain system. Promoters are organizing mega conventions, flaunting their lavish lifestyle and using social media to woo gullible investors.
