NEW DELHI: Accusing Amway India of running a multi-level marketing operation and siphoning off more than Rs 2,859 crore, depositing them in the accounts of overseas investors, the Enforcement Directorate on Monday said a special court in Hyderabad has taken cognisance of its prosecution complaint (chargesheet) filed against the company.
The agency has claimed that AmwayIndia Enterprises Pvt Ltd had cheated the public and “generated proceeds of crime totalling to Rs 4,050 crore”.TheED had earlier attached more than Rs 757 crore worth of assets in this case. The ED’s money laundering probe is based on multiple FIRs registered by the Telangana police against Amway and its directors. The FIRs alleged Amway has been engaged in promoting “illegal money circulation scheme under the guise of sale of goods and has been cheating the general public by promising them very high commission/incentives” which would continue in perpetuity.
The ED claimed its investigation revealed that “instead of selling goods directly to the end consumer, Amway has floated a multi-level marketing scheme of members and has introduced many intermediaries in the name of distributors. The scheme does not focus on sale of products but survives primarily on enrolling of members”.
The agency further added that its probe revealed that “more than Rs 2,859 crore of money collected from the members has been siphoned off and parked in the bank accounts of overseas investors in the name of dividend, royalty and payments for other expenses”.
The agency has claimed that AmwayIndia Enterprises Pvt Ltd had cheated the public and “generated proceeds of crime totalling to Rs 4,050 crore”.TheED had earlier attached more than Rs 757 crore worth of assets in this case. The ED’s money laundering probe is based on multiple FIRs registered by the Telangana police against Amway and its directors. The FIRs alleged Amway has been engaged in promoting “illegal money circulation scheme under the guise of sale of goods and has been cheating the general public by promising them very high commission/incentives” which would continue in perpetuity.
The ED claimed its investigation revealed that “instead of selling goods directly to the end consumer, Amway has floated a multi-level marketing scheme of members and has introduced many intermediaries in the name of distributors. The scheme does not focus on sale of products but survives primarily on enrolling of members”.
The agency further added that its probe revealed that “more than Rs 2,859 crore of money collected from the members has been siphoned off and parked in the bank accounts of overseas investors in the name of dividend, royalty and payments for other expenses”.