Amway
November 20, 2023
India's Enforcement Directorate filed a prosecution complaint under the Prevention of Money Laundering Act against Amway India Enterprises in a special PMLA court in Hyderabad, which took cognizance of the complaint on November 20, 2023. The probe stems from police cases registered in Telangana against Amway and its directors.
The agency alleged that Amway operated a multi-level marketing and money-circulation scheme that, through cheating, generated proceeds of crime of about 4,050 crore rupees, or roughly 40.5 billion rupees, and that more than 2,859 crore rupees collected from members was moved to overseas investors in the form of dividends, royalties and other payments. It has previously attached about 757 crore rupees of Amway's movable and immovable property. Police alleged in the underlying cases that the company promoted an illegal scheme in the guise of selling goods by promising high commissions for enrolling new members.
An Amway India spokesperson said the complaint relates to an investigation dating to 2011, that the company has cooperated with the agency and that it remains committed to legal and regulatory compliance and confident in the Indian judicial process. Amway India has about 2,500 employees and more than 550,000 independent distributors.