ED action against Amway India: The Enforcement Directorate (ED) has taken major action and registered a complaint against direct selling firm Amway India. The complaint has been filed in a special court in Hyderabad under the PMLA in connection with alleged money laundering of Rs 4,050 crore. Taking notice of this complaint, the court has ordered to take legal action on it by November 20, 2023. The ED investigation is based on a complaint lodged by the Telangana police and several FIRs against Amway and its directors.
What’s the whole deal?
The Enforcement Directorate has accused Amway India of promoting an illegal ‘money circulation scheme’ among investors. It is also alleged that she was cheating people by promising them high commission through easy registration under the guise of selling goods. A probe by the ED revealed that the scheme of Amway India was a pyramid scheme through which people at the top were getting huge profits. In this scheme, the newly joined member will nominate many people and it will form a chain. The commission amount increases as more people join.
The company earned Rs 4050.21 crore
The ED has found in its investigation that Amway earned a total of Rs 4050.21 crore through this ‘money circulation scheme’. Along with this, the investigation also revealed that the company had transferred Rs 2,859 crore to the accounts of investors sitting abroad. In this case, the ED has also attached movable and immovable assets of the company worth Rs 757.77 crore. At present, ED investigation is going on in this case.
The company gave this explanation.
Following the action initiated by the Enforcement Directorate, the company clarified that the matter was related to the 2011 complaint. The company is extending its full cooperation to the ED in the investigation of the matter and is also providing the details sought by the investigating agency. The company said it started its operations in India 25 years ago and abides by all the laws of the country. It has more than 2500 employees and more than 5.5 lakh distributors across the country. In such a situation the company will protect the interests of all its people.
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