ED has filed its charge sheet against multi-marketing firm Amway India in a money laundering case, with movable assets worth ₹757 crore identified.
The Enforcement Directorate (ED) has filed a charge sheet against health and beauty company Amway India Pvt Ltd in a money laundering probe, attaching assets worth ₹757 crore to the company.
Amway India, a multilevel marketing (MLM), enrolled lakhs of people across the country in its marking scheme by offering them commission on high-price cosmetic products, tasked with recruiting more members.
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ED in its charge sheet said that Amway India was running a multi marketing and money circulation scheme to collect hefty amounts of money from their subscribers. The agency further identified proceeds of crime worth ₹4,050 crore in the company.
Further, the central agency attached movable and immovable assets worth ₹757 crore to Amway India. ED had previously said in a statement that Amway’s “entire focus is about propagating how members can become rich by becoming members”, not on the products.
Products being sold by Amway India were used to pass off as multi level marketing schemes across the country, leading to a massive pyramid fraud. The probe is being carried out under prevention of money laundering act (PMLA).
Controversy surrounding Amway India
In 2022, ED had attached hundreds of crores to 36 different accounts of Amway India. Immovable and movable properties worth ₹411.83 crore and bank balance of ₹345.96 crore was attached to the company by ED.
However, the MLM firm had defended its business by saying that the probe actually dates back to 2011, and their current operations meet all the regulatory requirements of the Centre.
In an official statement, Amway India had said, “The action of the authorities is with regards to the investigation dating back to 2011 and since then we have been co-operating with the department and have shared all the information as sought for from time to time since 2011. We will continue to cooperate with the relevant government authorities and the law officials towards a fair, legal, and logical conclusion of the outstanding issues”.
