Pyramid fraud: ED attaches assets worth Rs 757 crore of Amway

The Enforcement Directorate has attached assets worth Rs 757.77 crore of Amway India Enterprises Private Limited, a company accused of running a multi-level marketing scam. The attached properties include land and factory buildings of Amway in Tamil Nadu’s Dindigul District, a plant and its machinery, vehicles, bank accounts and other fixed deposits. According to the officials, between 2002-2003 and 2021-2022, Amway collected Rs 27,562 crore through its business operations, of which it paid Rs 7,588 crore as commission to its distributors and members in India and in the US.

The ED has alleged that Amway is involved in running a fraud in the guise of direct selling through a multi-level marketing network 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". "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," the agency said. "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 adding members under the guise of sale of goods by enrollment of members in a chain system. The promoters conducted mega conventions, flaunted their lavish lifestyle and used social media to lure gullible investors," the statement added.

Responding to the charges in a statement, Amway India said, "The action of the authorities is with regards to the investigation dating back to 2011 and since then we have been co-operating with the department and have shared all the information as sought for from time to time since 2011. We will continue to cooperate with the relevant government authorities and the law officials towards a fair, legal, and logical conclusion of the outstanding issues."