Assets worth over Rs 757 crore belonging to multi-level marketing (MLM) scheme promoting company, Amway India, have been attached under the anti-money laundering law, the Enforcement Directorate said on Monday.

The provisionally attached properties of Amway India Enterprises Pvt. Ltd. include land and factory building at Dindigul district in Tamil Nadu, plant and machineries, vehicles, bank accounts and fixed deposits, it said in a statement.

Out of the total Rs 757.77 crore of assets attached under the Prevention of Money Laundering Act (PMLA), immovable and movable properties are worth Rs 411.83 crore while the rest are bank balances of Rs 345.94 crore kept in 36 accounts belonging to Amway, it said.

The federal agency accused the company of running a multi-level marketing ‘scam’ 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.”

According to the agency, the company has collected an amount of Rs 27,562 crore from its business operations between 2002-03 and 2021-22. Of this, it paid commission of Rs 7,588 crore to its distributors and members in India and in the US during this period.

Probe revealed that Amway has brought Rs 21.39 crore as share capital in India between 1996-97 and 2020-21, the company has remitted a sum of Rs 2,859.10 crore as dividend, royalty and other payments to its investors and parent entities.

Britt Worldwide India Pvt Ltd and Network Twenty One Pvt Ltd have also come under the agency's lens. They provide training services and products to Amway.

“They played a major role in promoting the pyramid scheme of Amway by conducting seminars for joining members under the guise of sale of goods by enrolment of members in the chain system. The promoters are conducting mega conventions and flaunted their lavish lifestyle and used social media to lure gullible investors," ED said.

ED pointed out that “the new members are not buying the products to use them, but to become rich by becoming members as showcased by the upline members. The reality is that the commissions received by the upline members contribute enormously in hiking the prices of products".

Amway's entire focus is about propagating how members can become rich by becoming members, it said.

Image source: ANI