The Enforcement Directorate (ED) has launched a money laundering probe against a popular direct marketing company, the Amway India Enterprises (AIE), accusing it of pushing multi-level marketing (MLM) by enrolling people as members by offering them lucrative commissions on exorbitantly priced products.
The ED’s Hyderabad unit has registered an economic crime information report (ECIR) under Section 3 (proceeds of a crime) of the Prevention of Money Laundering Act (PMLA) after taking over the cases from the Hyderabad police. The CID had already filed a chargesheet against AIE for violating the Prize Chits & Money Circulation (Banning) Act, 1978. The Medak district police have registered another case against the company.
The ECIR alleges that most people end up losing their investment in the Amway scheme. ‘Being the promoters, the initial members – who enrolled the majority members into the scheme – get easy money without any effort. Thus, they are unlawfully enriching themselves at the cost of innocent members/ distributors down the line,’ the ED claimed
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