Chennai: The Enforcement Directorate has attached properties belonging to Amway India Enterprises in Tamil Nadu for “multi-level marketing (MLM) scam”.
The overall worth of the attached properties is estimated at Rs 757.77 crore.
According to the agency, the properties include land and factory building of Amway in Dindigul district, plant and machinery vehicles, bank accounts and fixed deposits.
The FDs and bank balances of 36 different accounts total Rs 345.94 crore, while the worth of the movable and immovable properties is around Rs 411.83 crore.
ED has accused Amway of running a multi-level marketing ‘scam’.
“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.
The products are exorbitantly priced as compared to alternative products of reputed manufacturers in the open market, it said.
“Without knowing the real facts, the common gullible public is induced to join as members of the company and purchase products at exorbitant prices and are thus losing their hard-earned money. The new members are not buying the products to use them, but to become rich by becoming members as showcased by the upline members. Reality is that the commissions received by the upline members contribute enormously in hike of prices of the products,” it added.
It pointed out that there was no focus on products.
“Products are being used to masquerade this MLM Pyramid fraud as a direct selling company,” ED further stated.
It may be noted that direct selling companies were banned from promoting pyramid schemes in December.
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