As part of a money laundering investigation, India’s Enforcement Directorate (ED) has provisionally attached assets worth ₹7.6 billion ($99.23m) belonging to Amway India Enterprises Private Limited. Specifically, ED has provisionally attached immovable and movable properties worth ₹4.1 billion ($54m) and bank balances of ₹3.46 billion ($45m). The attached properties include real estate, plants and machinery, vehicles, bank accounts and fixed deposits. Notably, the company was involved in operating a multi-level marketing (MLM) scam.
ED’s investigation revealed that Amway is operating a pyramid fraud disguised as a direct selling MLM network. Gullible and unaware victims join the company as members and purchase its products at exorbitant prices in the hopes of becoming rich as exemplified by those above them in the pyramid. However, the commissions that the members in the upper hierarchy receive ultimately result in a further increase in product prices.
During 2002-22, Amway collected ₹275.62 billion ($3.6b). Of this amount, the company paid ₹75.88 billion in commission to its distributors and members in India and the US. The company’s only focus is to misrepresent that Amway membership can make people rich. No attention is in fact paid to the products, which are simply a guise for the company’s MLM pyramid fraud.
Source: Enforcement Directorate, India