Paridhi Arya
Published on April 19, 2022 at 13:47 IST
Amway, the household name in India, multi level Marketing Company known was enrolling people as member by offering attractive offers and high commissions has now under the Radar of Enforcement Directorate.
Enforcement Directorate had attached in total Assets of worth 757 Crore Rupees. Properties worth Rupees 411.83 Crores and bank balance worth rupees 345.95 Crores.
The action is taken under Prevention of Money Laundering Act the plant in Tamil Nadu was also attached.
Amway had made the statement that “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. The recent inclusion of Direct Selling under the Consumer Protection Act (Direct Selling) rules, 2021, have brought in the much- needed Legal and regulatory clarity for the industry, while again confirming Amway India’s continuous compliance with the spirit and letter of all Laws and Regulations in India,”
In the investigation it was found that Amway is holding a pyramid Fraud behind the mask of direct selling.
Enforcement Directorate stated that “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,”
The prices of Amway product are extremely high because they use to pay High Commissions so people do not care about products but the Commission on it.
From the earnings of 27, 562 Crore Rupees 7,588 Crore Rupees are distributed among the members in India and USA.
“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,” said by Enforcement Directorate.
The seminars are conducted and people were made members by showing as if they are only selling products to them and for this Enforcement Directorate has accused two companies Britt Worldwide India Private Limited and Network twenty-one Private Limited.
