New Delhi: The Enforcement Directorate (ED) has attached assets worth over Rs 757 crore of one of the country’s most known multi-level marketing (MLM) and direct-selling companies, Amway India, as part of a money-laundering investigation.
The federal agency issued a statement on Monday, alleging that the company was perpetrating a “scam” by running a pyramid “fraud” in the guise of direct-selling MLM network.
“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,” the ED alleged.
An Amway spokesperson said they are cooperating with the authorities “towards a fair legal, and logical conclusion of the outstanding issues”.
The ED issued a provisional order under the Prevention of Money Laundering Act (PMLA) for attachment of assets worth Rs 757.77 crore belonging to Amway India Enterprises Private Limited.
It said the company is accused of “running a multi-level marketing scam”.
The attached properties include land and factory buildings of Amway located in Dindigul district of Tamil Nadu, plant and machineries, vehicles, bank accounts and fixed deposits.
Of the total attachment value, immovable and movable properties are worth Rs 411.83 crore, while the remaining amount of Rs 345.94 crore is deposited in 36 bank accounts “belonging” to Amway, the agency said.
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. —PTI