'Co-operating, Shared All Info': Amway As ED Freezes Assets Worth Rs 757 Crore

"Amway is running a pyramid fraud in the guise of direct selling multi-level marketing," an ED probe found.

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Hindi Female

The Enforcement Directorate (ED) on Monday, 18 April, attached assets worth Rs 757.77 crore belonging to Amway India Enterprises Private Limited, which has been accused of running a multilevel marketing scam.

Meanwhile, Amway said in a statement that the action pertained to an investigation dating back to 2011, adding that it had been co-operating with the department and had shared all the information as sought.

"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. It is observed that the prices of most of the products offered by the company are exorbitant as compared to the alternative popular products of reputed manufacturers available in the open market."
The Enforcement Directorate

"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 central financial investigation agency added in its statement.


The attached properties include the land and factory building of Amway at Dindigul district in Tamil Nadu, as well as the company's plant, machinery, vehicles, bank accounts, and fixed deposits.

The ED has provisionally attached immovable and movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway.

"Amway has brought Rs. 21.39 crores as share capital in India in 1996-97 and till FY 2020-21, the company has remitted huge amount of Rs. 2859.10 crore in the name of dividend, royalty and other payments to their investors and parent entities," as per the ED.

Provided Required Info, Continued Cooperation: Amway

Sharing a statement, Amway India said that it had been cooperating with the authorities and had shared all the required information asked of it since the case was lodged.


It added that the company will continue to cooperate with the relevant government authorities and law officials to ensure a "fair, legal, and logical conclusion of the outstanding issues".

"However, the recent inclusion of Direct Selling under the Consumer Protection Act (Direct Selling) rules, 2021, have brought in the much-needed legal and regulatory clarity for the industry, while again confirming Amway India's continuous compliance with the spirit and letter of all laws and regulations in India," the statement further said.

The company also added that a "misleading" impression about the company would affect the livelihood of "over 5.5 lakh direct sellers in the country".

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