special correspondent New Delhi
The Enforcement Directorate has attached assets estimated at ₹757.77 crore of Amway India Enterprises Private Ltd., which has been accused by the agency of running a multi-level marketing scam. The 36 bank accounts identified so far had a cumulative balance of ₹345.94 crore, the ED said.
The company had collected about ₹27,562 crore through its business operations from 2002-03 to 2021-22, out of which it paid commissions of ₹7,588 crore to its distributors and members in India and the U.S. from 2002-03 to 2020-21, as alleged by the agency.
“Amway has brought ₹21.39 crore as share capital in India in 1996-97 and till 2020-21, the company has remitted a huge amount of ₹2,859.1 crore in the name of dividend, royalty and other payments to their investors and parent entities,” it said in a statement, adding that the company ran the “pyramid fraud” under the guise of a direct-selling multi-level marketing network.
“The prices of most of the products are exorbitant as compared to the alternative popular products of reputed manufacturers... The common gullible public is induced to join as members and purchase products at exorbitant prices and are thus losing their hard earned money,” the ED said.
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