Recently, Enforcement Directorate (ED) attached assets worth Rs 757.8 crore of Amway India Enterprises in connection with an alleged marketing scam. It claimed that Amway was running a multi-level marketing scam. The ED provisionally attached immovable and movable properties worth Rs 411.83 crore and bank balances of Rs 345.94 crore from 36 different accounts belonging to Amway. Data from the Department of Economic Affairs shows that in 2021-22 (until December 2021), ED had provisionally attached Rs 8,989.3 crore worth of assets.
The company has said it will expand the production capacity at its contract manufacturing facility in Baddi (Himachal Pradesh). The company has just inked an agreement with its Baddi-based leading vendor Sarvotham Care Ltd for the purpose. Amway India is a wholly owned Indian subsidiary of the $8.2 billion Amway Corporation, Michigan, USA, one of the largest Direct Selling Companies in the world.
It is not just Nestle India which has violated the regulatory and manufacturing standards leading to recall of its products.
The Enforcement Directorate (ED) has attached assets worth over Rs 757 crore of one of the country's most known multi-level marketing (MLM) and direct-selling companies, Amway India, as part of a money-laundering investigation. The central agency issued a statement on Monday, alleging that the company was perpetrating a "scam" by running a pyramid "fraud" in the guise of direct-selling MLM network. "The entire focus of the company is about propagating how members can become rich by becoming members. There is no focus on the products. "Products are used to masquerade this MLM pyramid fraud as a direct-selling company," the ED alleged.
Amway maintains the action was related to a case in 2011 and it has been cooperating with the investigative agency.
If the fear of ED could drive the powerful people of today to be honest or at least be minimally corrupt, will it not be a great thing for our nation?, asks Sudhir Bisht.
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