Amway India: ED attaches company’s assets worth Rs 757 crore in alleged Multi-level marketing scam!

This video is in Hindi and covers the following: Amway India: ED attaches company’s assets worth Rs 757 crore in alleged Multi-level marketing scam! ED ने Amway India की ~ ₹750 crore की Assets Freeze की Pyramid Fraud का आरोप…

Amway India: ED attaches company's assets worth Rs 757 crore in alleged Multi-level marketing scam!

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This video is in Hindi and covers the following:

Amway India: ED attaches company’s assets worth Rs 757 crore in alleged Multi-level marketing scam!
ED ने Amway India की ~ ₹750 crore की Assets Freeze की

Pyramid Fraud का आरोप

Amway is the World’s No. 1 direct selling company with presence in over 100 countries and territories.
Globally, Amway is 60 years old, USD 8.8 billion, manufacturer and direct seller of high-quality consumer goods.
Amway’s innovation and industry-leading R&D has seen more than 800 patents granted and another 240 patents pending. Amway has close to 1,000 scientists across 100 research and development and quality assurance laboratories worldwide.

Amway India is a wholly owned subsidiary of Amway with headquarters located in Ada, Michigan, USA.
Established in 1995, Amway India commenced commercial operations in May 1998 and has emerged as the largest FMCG Direct Selling Company in the country
Amway India offers Indian citizens opportunity to own and operate their own business by selling more than 140 distinctive quality consumer products.

Assets worth over ₹ 757 crore belonging to direct-selling consumer goods company Amway India have been attached under the anti-money laundering law, the Enforcement Directorate said on Monday.

The provisionally attached properties of Amway India Enterprises Pvt Ltd. include land and factory building at Dindigul district in Tamil Nadu, plant and machinery, vehicles, bank accounts and fixed deposits

Attaching a property means it cannot be transferred, converted or moved.

Out of the total ₹ 757.77 crore of assets attached under the Prevention of Money Laundering Act (PMLA), immovable and movable properties are worth ₹ 411.83 crore while the rest are bank balances of ₹ 345.94 crore kept in 36 accounts belonging to Amway

The government had banned direct selling companies from promoting pyramid schemes in December. The Consumer Protection (Direct Selling) Rules, 2021 were aimed at protecting consumers’ rights and restricting companies which are involved in direct selling like Tupperware, Amway and Oriflame from encouraging money circulation schemes.

Pyramid Scheme: a form of investment (illegal in the UK and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.

The Enforcement Directorate accused the company of running a multi-level marketing “scam” where prices of most of the products offered by the company were “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 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

The entire focus of the company is about propagating how members can become rich by becoming members. There is no focus on the products

The agency claimed that the company, between FY2003 and FY2022, collected an amount of Rs 27,562 crore. Out of this, they paid a commission of Rs 7,588 crore to their affiliated members and distributors in the United States and India

Responding to the charges in a statement, Amway India 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

“As the matter is sub judice, we do not wish to comment further.

We request you to exercise caution, considering a misleading impression about our business also affects the livelihood of over 5.5 lakh direct sellers in the country,” the company added.

Amway has brought Rs 21.39 crore as share capital in India in 1996-97 and till FY 2020-21, the company has remitted huge amount of Rs 2,859.10 crore in the name of dividend, royalty and other payments to their investors and parent entities.

“M/s. Britt Worldwide India Private Limited and M/s. Network Twenty One Private Limited also played a major role in promoting pyramid scheme of Amway by conducting seminars for joining members under the guise of sale of goods by enrollment of members in chain system.

The promoters are conducting mega conventions and flaunted their lavish lifestyle and used social media to lure gullible investors,” the agency said.

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