ED files prosecution complaint under PMLA against Amway India
The Enforcement Directorate (ED) has filed a prosecution complaint against direct-selling company Amway India under the Prevention of Money Laundering Act, 2002 (PMLA). The Metropolitan Sessions Judge cum Special Court (PMLA) in Hyderabad has acknowledged the complaint, signifying the start of legal proceedings. An Amway spokesperson stated that the current prosecution complaint is connected to an investigation that began in 2011.
Seizure of assets valued at over Rs. 757 crore
In April 2022, Amway India's assets valued at over Rs. 757 crore were confiscated under anti-money laundering regulations. The seized assets comprised land and a factory building in Tamil Nadu's Dindigul district, plant and machinery, bank accounts, vehicles, and fixed deposits. Of the total assets attached under PMLA, immovable and movable properties amount to Rs. 411.83 crore, while the remaining Rs. 345.94 crore are bank balances.
Allegations of multi-level marketing scheme
Previously, the ED accused Amway India of participating in a multi-level marketing (MLM) scheme. The agency alleged that the prices of most of its products were "exorbitant compared to comparable products from reputable manufacturers available in the open market." Furthermore, the ED accused Amway of actively promoting the idea that the general public could become wealthier by joining as a member and using its products to conceal this "MLM pyramid fraud."
Amway's financial transactions under scrutiny
The ED asserted that between FY2003 and FY2022, Amway India amassed a total of Rs. 27,562 crore. From this amount, they distributed a commission of Rs. 7,588 crore to their affiliated members and distributors in the US and India. The details of Amway India's alleged money laundering activities are expected to be disclosed during the legal proceedings.
