The Directorate of Enforcement (ED) has attached ₹ 757.77 crore of movable and immovable properties of Amway India Enterprise Pvt. Ltd. (Amway) for allegedly floating a pyramid scheme through multi-level marketing. Based on a prosecution complaint filed by the ED, the Metropolitan Sessions Judge cum Special Court has taken cognizance of the case against Amway on Monday. The complaint was filed under the Prevention of Money Laundering Act (PMLA) of 2002.
The ED officials had initiated the investigation on the basis of various FIRs registered by Telangana Police under various sections of IPC against Amway and its directors. The FIRs claim that Amway has been promoting illegal ‘money circulation scheme’ under the guise of sale of goods and has been cheating the general public by promising them high commissions/incentives through simple enrolment of new members.
The investigation by ED revealed that Amway has been promoting a pyramid scheme in the guise of direct selling. “Instead of selling goods directly to the end consumer, Amway has floated a multi-level marketing (MLM) scheme of members and has introduced many intermediaries in the name of distributors. The scheme does not focus on sale of products but survives primarily on enrolling members,” said a release from ED.
