ED attaches assets worth Rs 757 cr of Amway India; Know about the Pyramid Fraud case
The Enforcement Directorate on April 18 attached assets worth over Rs 757 crore belonging to Amway India Enterprises Pvt Ltd. Amway India Enterprises Private Limited is a company which incorporated on 20 February 1995. It’s multi-level marketing and direct selling company and is a private unlisted company and is classified as a company limited by shares’. The case against the company is called Pyramid Fraud case and it is now in discussion, First Post reported.
ED attached land and factory building of Amway in Tamil Nadu`s Dindigul district, plant and machinery, vehicles, bank accounts, and fixed deposits. The ED had temporarily seized movable and immovable assets worth Rs 411.83 crore and bank balances worth Rs 345.94 crore from 36 different accounts.
Pyramid Fraud case
According to the case that runs behind the company Amway, it was found that the prices of most of the products offered by the company are exorbitant as compared to the alternative popular products of the famous manufacturers available in the open market. The case is called Pyramid Fraud case and the name has been given due to the direct selling which is seen as a pyramid scheme under the guise of a multi-level marketing network.
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The public, without knowing the real facts, is forced to join the company and buy products at exorbitant prices and thus lose the money they have earned. The public joins without any idea what is happening. The whole focus of the company is on spreading the word about how members can become rich by becoming a member.
The agency claimed that the company collected an amount of Rs 27,562 crore between FY 2002-03 and FY 2020-21, out of which, the company paid a commission of Rs 7,588 crore to their affiliated members and distributors in the United States and India. Moreover, the Pyramid scheme has also been promoted by other companies.
