ED accuses Amway India for money laundering

The Enforcement Directorate (ED) attached assets worth Rs 757.77 crore belonging to FMCG Amway India in a money laundering case. The ED alleged that Amway was running a pyramid fraud in the semblance of direct selling multi-level marketing network.

The federal agency accused the company of running a multi-level marketing 'scam' where prices of most of the products offered by the company were “exorbitant as compared to the alternative popular products of reputed manufacturers available in the open market.”

The federal agency said, “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. The reality is that the commissions received by the upline members contribute enormously in hike of prices of the products.”

Out of the total Rs 757.77 crore of assets attached under the Prevention of Money Laundering Act (PMLA), immovable and movable properties are worth Rs 411.83 crore while the rest are bank balances of Rs 345.94 crore kept in 36 accounts belonging to Amway.

The provisionally attached properties of Amway India Enterprises Pvt. Ltd. include land and factory building at Dindigul district in Tamil Nadu, plant and machineries, vehicles, bank accounts and fixed deposits.

Amway said the ED action was with regard to an investigation dating back to 2011 and since then, the company has been cooperating with the agency and has shared all the information sought by it from time to time. Amway spokesperson said, “Amway has a rich history of maintaining the highest levels of probity, integrity, corporate governance and consumer protection, which are much ahead of time in the interest of the consumers at large.”