'Will continue to cooperate,' says Amway after ED attaches assets worth Rs 757 cr

The Enforcement Directorate (ED) announced on Monday that it has attached assets worth Rs 757.77 crore belonging to Amway India Enterprises Private Limited which has been accused of operating a multi-level marketing scam.

Amway has stated that the action of the authorities is with regards to the investigation dating back to 2011 and since then it has been cooperating with the department. Amway added that it has shared all the information as sought for from time to time since 2011.

It further added that it will continue to cooperate with the relevant government authorities and the law officials towards a fair, legal, and logical conclusion of the outstanding issues. 

"However, the recent inclusion of Direct Selling under the Consumer Protection Act (Direct Selling) rules, 2021, have brought in the much- needed legal and regulatory clarity for the industry, while again confirming Amway India's continuous compliance with the spirit and letter of all laws and regulations in India," noted Amway. "Amway has a rich history of maintaining the highest levels of probity, integrity, corporate governance, and consumer protection, which are much ahead of time in the interest of the consumers at large," it conveyed. 

"As the matter is sub judice, we do not wish to comment further. We request you to exercise caution, considering a misleading impression about our business also affects the livelihood of over 5.5 lakh direct sellers in the country," Anway explained. 

The provisionally attached properties by the ED of Amway India Enterprises Pvt. Ltd. include land and factory building at Dindigul district in Tamil Nadu, plant and machinery, vehicles, bank accounts, and fixed deposits, it said in a statement.

Out of the total Rs, 757.77 crores of assets attached under the Prevention of Money Laundering Act (PMLA), immovable and movable properties are worth Rs 411.83 crore while the rest are bank balances of Rs 345.94 crore kept in 36 accounts belonging to Amway, it said.

The federal agency accused the company of running a multi-level marketing 'scam' where prices of most of the products offered by the company were ''exorbitant as compared to the alternative popular products of reputed manufacturers available in the open market.''

Also read: ED attaches Rs 757 crore worth assets of Amway India