ED filed Prosecution Complaint under the PMLA, 2002 against M/s Amway India Enterprise Pvt. Ltd. (Amway)

Directorate of Enforcement (ED) has filed Prosecution Complaint under the
Prevention of Money Laundering Act (PMLA), 2002 against M/s Amway India Enterprise
Pvt. Ltd. (Amway) in the Court of Hon’ble Metropolitan Sessions Judge cum Special Court
(PMLA) Hyderabad. The Hon’ble Court has taken cognizance of the Prosecution Complaint
on 20.11.2023.
ED initiated investigation on the basis of various FIRs registered by Telangana Police
under various sections of IPC, 1860 against Amway and its Directors. The FIRs alleged that
Amway has been promoting an illegal ‘Money Circulation Scheme’ under the guise of sale
of goods and has been cheating the general public by promising them very high
commissions / incentives through simple enrolment of new members and by claiming that
these commissions / incentives would continue in perpetuity.
ED investigation revealed that Amway has been promoting a Pyramid scheme in the
guise of direct selling. Instead of selling goods directly to the end consumer, Amway has
floated a multi-level marketing scheme of members and has introduced many intermediaries
in the name of distributors. The scheme does not focus on sale of products but survives
primarily on enrolling of members. Once a newcomer is convinced to pay money through
someone who has referred him to the company, he/she becomes a representative and to
earn commission, he/she has to enrol new members and as the number of persons
increases down the line, the ones on top get more commission and more incentives like
luxurious tours.
Thus, Amway has been operating a Multi-Level Marketing Scheme and Money
Circulation Scheme has collected huge amounts from the subscribers. By commission of
the scheduled offence of cheating, Amway has generated Proceeds of Crime totalling to Rs.
4050.21 Crore.
ED investigation also revealed that more than Rs. 2859 Crore of money collected
from the members has been being siphoned off and parked in the bank accounts of
overseas investors in the name of dividend, royalty and payments for other expenses.
During investigation, movable and immovable properties to the tune of Rs. 757.77
Crore have been attached by ED in this case. Further investigation is under progress.