ED attaches Amway India’s assets worth ₹757.77 crore

Company accused of running a multi–level marketing scam

The Enforcement Directorate has attached assets worth ₹757.77 crore of Amway India Enterprises Private Limited, which has been accused of running a multi–level marketing scam.

The attached properties include a land parcel and factory building of Amway in Tamil Nadu’s Dindigul district, plant and machineries, vehicles, bank accounts and fixed deposits. The 36 bank accounts identified so far had a cumulative balance of ₹345.94 crore, said the agency.

The company had collected about ₹27,562 crore through its business operations from 2002–03 to 2021–22, out of which it paid commissions of ₹7,588 crore to its distributors and members in India and the U.S. from 2002–03 to 2020–21, as alleged.

“Amway has brought ₹21.39 crore as share capital in India in 1996–97 and till 2020–21, the company has remitted a huge amount of ₹2,859.10 crore in the name of dividend, royalty and other payments to their investors and parent entities,” it said, adding that the company was running the “pyramid fraud” under the guise of a direct selling multi–level marketing network.

“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,” said the ED.

The agency said the new members were not buying the products to use them, but on the promise of the previous members that they would become rich. However, in reality, the commissions paid to the old members were resulting in the hike of the products’ prices, as alleged.

It is alleged that Britt Worldwide India Private Limited and Network Twenty One Private Limited also played a major role in promoting the pyramid scheme of Amway by conducting seminars for joining members on the pretext of sale of goods by enrolment of members in a chain system. The promoters held mega conventions, flaunted a lavish lifestyle and used social media to lure gullible investors, said the agency.