Tamil NaduMLM Fraud Amway Assets Worth Rs 750 Crore Frozen by ED What...

MLM Fraud Amway Assets Worth Rs 750 Crore Frozen by ED What is the happened?

Amway India's assets worth Rs 758 crore have been frozen by the Enforcement Directorate under the Illegal Money Laundering Act.

Headquartered in the United States, Amway has established branches in various parts of the world, including India. Amway stands for American Way Sales. The company manufactures and sells cosmetics and home appliances.

The company, in the name of multi-level marketing, as in the movie Chess Hunt, has deceived millions of people into joining their company by inciting words of desire to become rich quickly by buying the company’s products and becoming a member.

The company has been brainwashing the public by holding meetings claiming to sell products and thereby engaging members like a chain of fraud. New members do not buy products for their own use, but buy products at high prices in the desire to become rich by joining as members. Andhra Pradesh CID police have arrested William Bingane, the CEO of Amway’s India branch in 2012, and two directors after discovering hundreds of crores of rupees in fraud.

The company was sued under the 1978 Gift Ticket and Prohibited Money Laundering Act. Based on this case, the enforcement department registered a case under the Illegal Money Transfer Act in 2012 and started an investigation. Enforcement found that Amway had committed Himalayan fraud under the guise of a multi-level marketing network, without directly selling their corporate products. According to the Enforcement Department, most of the products offered by the company are cheap and the general public, unaware of the facts, are encouraged to join the company and buy at higher prices.

Members will be added under the Silver, Gold, Platinum, Diamond scheme based on the number of members a person will add under him based on the Pyramid scheme and Multi Level Marketing.

More than five lakh members have joined the organization, including the first tier members, who have been holding meetings claiming that they have earned crores of rupees as commissions. The investigation revealed that the products distributed by Amway as its own product were substandard and that Amway, which was registered as a business entity, had emphasized the importance of committing fraud along with people.

Amway, which had invested 21 crore shares in 1996-97, now owns 2,859 crore shares, particularly making a profit of Rs 27,562 crore from 2002-03 to 2021-22, with a commission of Rs 7,588 crore for its distributors and members in India and the United States. The Enforcement Department said.

Amway India’s assets worth Rs 758 crore have been frozen by the Enforcement Department under the Illegal Money Laundering Act in connection with the scam. Accordingly, the company’s factory, machinery, vehicles, land and bank deposits in Dindigul district have been frozen.

The Enforcement Department said it had frozen 36 bank accounts owned by the company, including movable and immovable assets worth Rs 412 crore and bank deposits worth Rs 346 crore.

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