NEW DELHI: The Enforcement Directorate (ED) on Monday attched assets worth Rs 757.77 crore of
Amway India
Enterprises in connection with a marketing scam.
The attached properties include land and factory building of
Amway at Dindigul district, Tamil Nadu, plant & machineries, vehicles, bank accounts and fixed deposits.
ED had provisionally attached immovable & movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway.
"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," a statement by ED said.
The probe agency observed that 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.
"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 statement added.
It further highlighted that the new members are not buying the products to use them, but to become rich by becoming members as showcased by the upline members.
Reality is that the commissions received by the upline members contribute enormously in hike of prices of the products, it added.
Ready to Master Stock Valuation? ET’s Workshop is just around the corner!