Taking action in the money laundering case, ED has filed a charge sheet against Amway India, a company running Multi Level Marketing (MLM) scheme. The agency has filed this charge sheet in the Special Court of Hyderabad, taking cognizance of which the court has issued a notice against the accused to appear in the court.
Accused of illegally circulating money
The agency had initiated money laundering proceedings against Amway India on the basis of the case registered by Telangana Police. According to the news of Zee News, the allegation was that Amway is diverting money illegally in the name of selling goods and money is being taken from people by asking them to join this company in the name of investment and profits. It is claimed by the company that the more people you add to the company, the more the profit will increase.
Amway India was running a pyramid scheme
After this, the agency started its investigation against the company and found that Amway India was running a pyramid scheme in the name of direct selling. Instead of selling the company’s goods directly to the people, the company first asks people to join the company and calls the people associated with Multi Level Marketing (MLM) as distributors.
Cheated people in the name of commission and profits
The investigation also revealed that instead of selling its goods, the company focuses more on investing and involving people in the company. Under the company’s scheme, the person who becomes a member of the company by paying money through an already connected person, becomes the representative of the company and gets commission. Similarly, he is also given the task of connecting more people with the company so that he can be given more commission.
Total fraud of Rs 4050 crore
In this way, ED earned Rs 4050 crore by including people in the MLM scheme, out of which Rs 2859 crore was sent abroad. The company had taken this money from people in the name of investment or becoming a member of the company. According to the investigation, the company sent the money defrauded from the people abroad in the name of dividend, royalty and other expenses and got it deposited in the bank accounts there. In this case, the agency has taken action against the company and has so far attached assets worth Rs 757.77 crore.
