Vijayawada: ED files charge sheet against Amway

Vijayawada: The Directorate Enforcement (ED) has filed charge sheet against Amway India Enterprises in the Metropolitan Sessions-cum-Special Court (PMLA) at Hyderabad on Monday and the court took cognizance of the charge sheet, according to a communiqué from the office of Enforcement Directorate.

The Enforcement Directorate had launched an investigation, based on the criminal cases and FIRs filed by the police in the combined Andhra Pradesh under various sections of the Indian Penal Code against Amway and its directors. The FIRs clearly stated that Amway has been indulging in illegal money circulation scheme in the guise of sale of products and promise to pay commissions if the members recruited more members. The ED has stated that Amway has been conducting a pyramid scheme in the guise of direct selling. However, instead of directly selling products, it is indulging in multilevel marketing and introducing middlemen in the name of distributors. The scheme of Amway concentrates on joining more members into the scheme rather than on product sales.

According to the ED, Amway has collected huge amounts in the illegal money circulation scheme in the name of multilevel marketing. The ED found that Amway had amassed Rs 4,051.21 crore. It was also found that Amway has deposited Rs 2,859 crore in the foreign investor bank accounts, which was collected in the name of dividend, royalty and other expenses.

It may be recalled that the ED had already attached movable and immovable properties worth Rs 757.77 crore belonging to Amway during the investigation. Further inquiry is in progress.