Government Accuses Amway India To Be A Scam
About $100 million frozen.
According to a press release of the Enforcement Directorate of India:
“Enforcement Directorate (ED) has provisionally attached assets worth Rs.757.77 Crore belonging to M/s. Amway India Enterprises Private Limited, a company accused of running a multi-level marketing scam.
The attached properties include land and factory building of Amway at Dindigul District, Tamil Nadu, Plant & Machineries, vehicles, bank accounts and fixed deposits.
ED had provisionally attached immovable & movable properties worth Rs 411.83 Crore and bank balances of Rs 345.94 Crore from 36 different accounts belonging to Amway.
A money laundering investigation by the ED revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing network.
It is observed that 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.
The new members are not buying the products to use them, but to become rich by becoming members as showcased by the upline members. Reality is that the commissions received by the upline members contribute enormously in hike of prices of the products.
It is observed that the company has collected an amount of Rs. 27562 Crore from its business operations from 2002-03 to 2021-22 and out of above, the company has paid commission of Rs. 7588 Crore to its distributors & members in India and in USA during F.Y 2002-03 to 2020-21.
The entire focus of the company is about propagating how members can become rich by becoming members. There is no focus on the products. Products are used to masquerade this MLM Pyramid fraud as a direct selling company.
Amway has brought Rs. 21.39 Crores as share capital in India in 1996-97 and till F.Y 2020-21, the company has remitted huge amount of Rs. 2859.10 Crore in the name of dividend, royalty and other payments to their investors and parent entities.
M/s. Britt Worldwide India Private Limited and M/s. Network Twenty One Private Limited also played a major role in promoting pyramid scheme of Amway by conducting seminars for joining members under the guise of sale of goods by enrollment of members in chain system.
The promoters are conducting mega conventions and flaunted their lavish lifestyle and used social media to lure gullible investors.”
Amway is an entrepreneur-led health and wellness company based in Ada, Michigan. It is committed to helping people live better, healthier lives – across more than 100 markets worldwide. According to Forbes magazine, it is among the Top 50 privately held, family-owned companies in the United States. Top-selling brands for Amway are Nutrilite™, Artistry™ and XS™ energy – all sold exclusively by entrepreneurs who are known as Amway Business Owners. Amway is the No. 1 direct selling business in the world, according to the 2021 Direct Selling News Global 10.
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