The Enforcement Directorate has seized ₹757.77 crore worth of assets from Amway India Enterprises Private Limited accused of multi-level marketing fraud.
Attached properties include Amway land and factory building in Dindigul district of Tamil Nadu, factories and machinery, vehicles, bank accounts and fixed deposits. The 36 bank accounts identified so far had a cumulative balance of £345.94million, the agency said.
The company had about 27.562 billion through its operations from 2002-03 to 2021-22 as claimed.
“Amway raised £21.39 million in share capital in India between 1996 and 1997 and by 2020-21 the company has raised a whopping £2,859.10 million in name of dividends, royalties and other payments to its investors and parent companies transferred. ‘ it said, adding that the company was operating the ‘pyramid scam’ under the guise of a direct selling multi-level marketing network.
“The prices of most of the products offered by the company are exorbitant compared to the alternative popular products from reputable manufacturers that are available on the open market. Without knowing the true facts, the gullible public is lured into joining the company and buying products at exorbitant prices, thus losing their hard-earned money,” the ED said.
The agency said the new members didn’t buy the products to use them, but on promises made by the previous members that they would get rich. However, in reality, as claimed, the commissions paid to the old members led to an increase in product prices.
It is alleged that Britt Worldwide India Private Limited and Network Twenty One Private Limited also played an important role in promoting Amway’s pyramid scheme by holding seminars for members to join under the guise of selling goods by registering members in performed in a chain system. Organizers held mega-conventions, flaunted lavish lifestyles and used social media to lure gullible investors, the agency said.