Enforcement Directorate (ED) seized assets worth 757.77 crores of foreign company AMWAY

    In 1930, a historian named Will Durant writes in his book 'The Story of 19 Civilizations' that the conquest of India by the British rulers was a living story of the destruction of a great civilization by a merchant company, the East India Company. He further says that the office of this East India Company was run in a small building in London with only 35 employees, but this East India Company plundered a great country like India and made it poor and slave. This East India Company had no conscience, no principles, no limits, no decency.
The East India Company had only greed and greed, the story of the East India Company is a true story of bribery killing theft, plundering by crushing weak countries with swords and guns.
The story which was repeated about 500 years ago during the time of East India Company, the same story is being repeated even today. In the instant case if we talk about Amway, a foreign company, the action taken by Enforcement Directorate (ED) on Amway shows that this company which in 1996-97 had a share capital of only 21 crores in India. And till the financial year 2020-21, this company has sent assets worth Rs 2,859 (two thousand eight hundred and sixty nine) crores outside the country as dividend and royalty to its investors, parent entities. You can imagine how these multinational companies rob by bringing only 21 crores to millions of people in this country by showing only advertisements and false dreams and taking out hard earned money from their pockets, however, while cheating the people and countries
they  have been sending property outside the country keeping the motive of profit as their only motto. 

In the name of multi level marketing, this company is giving false dreams to the people that there is no need to do any kind of work, without any become a millionaire of ability, earn money sitting at home by making allurement like making money from only your three acquaintances, relatives, knowledgeables, fooling them and making them member distributor of Amway. Let's say you take 10,000 rupees from your friends or relatives. 3,000 rupees will be given to you in that commission. In the name of the product, products worth Rs 500-1000 will be sold to you for Rs 10000. By selling 10 to 100 times expensive products, you will be shown a dream that you are using the best products in the world and in becoming this one member, this company earns 50 to 70 percent profit.

Fraud in the name of business

●    Currently AMWAY doing business lies in over 100 countries and in millions of cities. There have been many complaints against them in many of these countries, but still it is increasing its business continuously by collaborating with such commissioning officers and leaders in different countries, and on the basis of false survey, this company has made itself direct. Also promoted by Selling News as the world's number one direct selling company in 2018.
●    AMWAY’s top ten markets in China, Korea, USA, Japan, Thailand, Taiwan, India, Russia, Malaysia and Italy just established by commissioning captivating and attractive advertisements

A pyramid scheme is a business model in which instead of selling goods directly, people are involved on the promise that they will be paid a higher commission if they create more members like themselves. The pyramid scheme is completely banned in India from December 2021 by the Government of India.

What is Multi Level Chain Marketing or Network Marketing?

Multi-level marketing is also called pyramid scheme, in foreign countries such poor and empty people who have nothing to do on their own, such people made an idea that we will make a network in which one person takes some money from three people and gives them pyramid scheme or multi level marketing. Ka or Chain will make a part of marketing, in which some commission will go to the person who makes him a member and the rest of the profit will go to the account of the people running these multi level marketing companies. These companies with multi level marketing show lucrative dreams in the name of commission on sales, commission on making members to the people of villages, cities, organize seminars in good luxurious hotels and show such dreams to people by putting coat ties that you can benefit from this scheme. As soon as you join, you will become a millionaire, millionaire, you will have an expensive car. You have to work for a few days, after that the people who make members under you will keep earning royalty or commission and you will be able to live a luxurious life without working.
Most of these companies have no factory of their own, no product of their own. By taking a product from the market and only labeling it on it, those products are sold through their members to new people by luring them with membership and commission. Once a person is caught in the trap of these multi level marketing companies, chain marketing companies and wants to compensate for his loss by making other people also victims of this and thus this chain 1 to 3, 3 to 9, 9 to 27 Spreading among people, it makes thousands of millions of people their prey, innocent people fall in its guise and lose their hard earned money.
In most cases, these companies also violate the general laws of the government. Marketing agents of these companies make unemployed people as their soft target and make them a victim and these companies do not do any kind of development work in any nation, but work to make them useless by increasing manlessness among the unemployed. It instills a feeling among the people of the country that you can live a luxurious life without doing anything.

AMWAY Brands and Products

AMWAY sells general home and personal care products at prices ranging from 2 to 10 times more expensive than even good quality products available in the market. For example, a normal toothpaste which is available in the market for Rs 35/- sells it for more than Rs 199. Amway sells simple tablets of vitamins, millers, etc., which are normally priced at Re 1 by showing lucrative dreams up to Rs 20.

AMWAY company has been accused of cheating the general public through its multilevel marketing and pyramid scheme, some of which are as follows.
●    On 6 August 2011, following complaints by the Kerala Police, Kozhikode, Kannur, Kochi, Kottayam, Thrissur, Kollam and Amway's offices in Thiruvananthapuram sealed. In November 2012, the Economic Offenses Wing of the Kerala Police, as part of its crackdown on money chain activities, searched Amway's offices in Kozhikode, Thrissur and Kannur and closed the firm's godowns. Products worth Rs 21.4 million (about US$ 4,00,000 at that time) were also seized. Later, Amway's M manager, PM Rajkumar, who was arrested after a search, was sent to judicial custody for 14 days.
    (Credits: Hindustan Times, September 29, 2011)
●    On May 27, 2013, officials of the Crime Branch of Kerala Police arrested William S. Pinckney, Managing Director and CEO of Amway India Enterprises, along with two other directors of the company, from Kozhikode. All three were arrested for running the pyramid scheme. He was granted bail the next day and business remained unaffected. On June 8, 2013, the Kozhikode Court lifted the stay on Amway offices in Kerala. On 26 May 2014, based on a consumer complaint from Andhra Pradesh, police arrested Amway CEO William S. Pinckney for unethical circulation of money. He was later arrested in other criminal cases registered against him in the state on charges of financial irregularities by the company. Pinckney was jailed for two months until he was released on bail.
    (Credits: The Economic Times, May 29, 2013)

Amway's properties worth crores seized under the guise of direct selling MLM network Charges of forgery

New Delhi: Enforcement Directorate (ED) under its money laundering probe has seized assets worth more than Rs 757 crore of the country's well-known multi-level marketing (MLM) and direct selling company Amway India have been confiscated.

●    ED seizes assets of Amway India worth Rs 757 crore
●    Amway says that it has been cooperating with the investigating agency
●  The investigating agency alleges that the company has not been careful about its products
The Directorate of Enforcement issued a statement on April 18, 2022 alleging that the company was committing fraud under the guise of direct selling MLM network. The probe agency alleges, "The entire focus of the company is on promoting how people can become rich by becoming a member." No attention is paid to the products. The products are used to make this mlm fraud appear as a direct selling company. At the same time, an Amway spokesperson said that they are cooperating with the authorities to reach a fair legal and logical conclusion of the outstanding cases.

The seized properties include bank deposits worth Rs 354.94 crore: Amway's land and factory buildings, plant and machinery, vehicles, bank accounts and fixed assets located in Tamil Nadu's Dindigul district, worth Rs 757.77 crore, belonging to Amway India Enterprises Pvt Ltd. Deposits are included. These assets include movable and immovable properties worth Rs 411.83 crore and Rs 354.94 crore deposited in 36 bank accounts of Amway. Amway says the ED's action pertains to the investigations dating back to 2011 and since then the company has been cooperating with the investigating agency and has shared all the information sought from time to time.
Huge amount sent to parent company: Money Laundering the investigation revealed that during 1996-97, Amway had brought Rs 21.39 crore into India as share capital and by the end of the financial year 2020-21, it had made a huge amount of Rs 2,859 crore in the name of dividend, royalty and other payments. But it was sent to its investors and the parent company. The ED alleges that companies like Brit Worldwide India Pvt Ltd and Network Twenty One Pvt Ltd played a key role in promoting Amway's plans by organizing seminars etc. Promoters organize big conferences. Demonstrate a luxurious lifestyle and use internet media to lure gullible investors. It is noteworthy that in December 2021, the central government had banned the promotion of pyramid and money-circular schemes by direct selling companies and new rules were notified for the direct selling industry. (courtesy: Dainik Jagran)

People become members without knowing the facts:

"Without knowing the actual facts, the gullible general public gets motivated to join the company as a member and buy the product at exorbitant prices," the ED said. This is how he loses his hard earned money. The agency said new members buy products not to use them, but to get rich by becoming members, as demonstrated by members of their upper row. The fact is that the price increase of the products contributes a lot to the commission received by the upper row members.

Collection of Rs 27,562 crore
Officials involved in the investigation say that the company has been operating in the country for years and many people are associated with the MLM scheme. During 2002-03 to 2021-22, the company collected a total amount of Rs 27,562 crore from business activities and paid commission of Rs 7,588 crore to its distributors and members in India and USA.

This is not only the first case against a foreign company named AMWAY. Even before this, Amway has been accused of cheating and cheating the general public even before this. From the chief executive officer to the director of this company, he has been jailed. But still, these foreign companies consider India as a big market and continue to do business by influencing the court through big lawyers to rob India.