Money laundering: Amway India under ED scanner

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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 Daily Mail.

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

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