Amway India’s assets worth 757.77 crores have been seized by the ED

The Enforcement Directorate (ED) has frozen the assets of Amway India Enterprises Private Limited, which has been accused of running a multi-level marketing scheme by the agency.

“The action of the authorities is in relation to the investigation dating back to 2011 and since then we have been cooperating with the department and have supplied all the information as asked from time to time 2011,” Amway India said in a statement on Monday. We will continue to work with relevant government officials and law enforcement agencies to reach a fair, legal, and rational resolution to the lingering concerns…”

A land parcel and factory building belonging to Amway in Tamil Nadu’s Dindigul district, as well as plant and machinery, automobiles, bank accounts, and fixed deposits, are among the connected items. According to the ED, the 36 bank accounts discovered so far have a total balance of 345.94 crores. 

Amway received approximately 27,562 crores

According to the agency, the corporation received approximately 27,562 crores through its business operations from 2002–03 to 2021–22, of which it paid commissions of 7,588 crores to its distributors and members in India and the United States from 2002–03 to 2020–21.

“Amway brought a tremendous amount of 2,859.10 crores in the name of dividend, royalty, and other payments to their investors and parent corporations in the year 1996–97,” it said in a statement, adding that the business ran the “pyramid scheme” under the pretext of a direct selling multi-level marketing network.

“The pricing of most of the company’s products are extravagant when compared to similar popular products from reputable manufacturers accessible on the open market.” “The general credulous public is induced to enroll as members of the company and purchase products at excessive prices without knowing the true facts, resulting in the loss of their hard-earned money,” claimed the ED.

It was also claimed that Britt Worldwide India Private Limited and Network TwentyOne Private Limited played a significant part in promoting Amway’s pyramid scheme by holding seminars for recruiting members under the guise of selling items through the enrolling of members in a chain system. According to the agency, the promoters organized big congresses, flaunted a luxury lifestyle, and used social media to entice naive investors.

“The recent inclusion of direct selling under the Consumer Protection Act (Direct Selling) rules, 2021, has brought much–needed legal and regulatory clarity to the industry, while again confirming Amway India’s continued compliance with the spirit and letter of all laws and regulations in India,” Amway India said in a statement. Amway has a long history of upholding the greatest standards of probity, honesty, corporate governance, and consumer protection, all of which are far ahead of the curve and in the best interests of the general public.”

“We do not wish to say further because the situation is pending.” “We respectfully suggest that you exercise caution since a false perception of our business has the potential to jeopardize the livelihoods of over 5.5 lakh direct sellers across the country,” the message stated.

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