Money laundering: Amway India under ED scanner

New Delhi, Jan 23: The Amway India Enterprise (AIE), a popular direct marketing company, has come under the scanner of the Enforcement Directorate (ED) for forcing multi-level marketing (MLM) by registering people as members by offering them lucrative commissions on exorbitantly priced products, reports

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Report further claims that Hyderabad ED unit has already started the probe into the matter. Moreover, ED has registered an economic crime information report (ECIR) under Section 3 (proceeds of a crime) of the Prevention of Money Laundering Act (PMLA) after taking over the cases from the Hyderabad police.

Further more Criminal Investigation Department (CID) had also lodged a charge-sheet against AIE for violating the Prize Chits & Money Circulation (Banning) Act, 1978.

ED filed report claims that most people lose their investment in the Amway scheme. Also, ED revealed that "Being the promoters, the initial members - who enrolled the majority members into the scheme - get easy money without any effort. Thus, they are unlawfully enriching themselves at the cost of innocent members/distributors down the line."

Reacting to the issue, Amway India senior vice-president of legal and corporate affair Yoginder Singh said that company has not received any information from the ED with regard to their having filed a case against Amway or the allegations therein.

OneIndia News