The Enforcement Directorate has accused Amway India Enterprises of running a multi-level marketing scam, while attaching its assets worth Rs 757 crore on Monday, including its factory in Tamil Nadu’s Dindigul district and bank balances of Rs 346 crore.

The agency said its money trail against Amway revealed that the company had collected Rs 27,562 crore from its business operations from 2002-03 to 2021-22. Out of this, Amway paid a commission of Rs 7,588 crore to its distributors and members in India and the USA.

“Investigation revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing networks. The prices of most of the products offered are exorbitant as compared to the alternative popular products of reputed manufacturers available in the open market,” the agency said. The ED has attached properties worth Rs 412 crore and bank balances of Rs 346 crore in 36 different accounts belonging to Amway.

“The entire focus of the company is about propagating how members can become rich by becoming members. Products are used to masquerade this MLM Pyramid fraud as a direct selling company,” ED said. "Amway brought Rs 21.3 crore as share capital to India in 1996-97. Its outward remittance, however, crossed Rs 2,859 crore till 2020-21 by way of dividend, royalty and other payments to their investors and parent entities," the agency said. The common gullible public is induced to join as members of the company and purchase products at exorbitant prices and are thus losing their money, the EDclaimed.

“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 the hike of prices of the products,” ED said.