Friday, 27 January 2012

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 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 Schemes (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

5 comments:

mlmmonavie1 said...

Dear Mr. Shyam sunder, nowadays one new company has entered in India called Monavie ( http://in.monavie.com/ ) please suggest is it a good company to work in. people are joining this company very fast from all over INDIA

thanks

Shyam Sundar said...

It is just another racket out to cheat Indians at large. It is also like other notorious crooks like Amway, Herbalife, et al, is a multilevel marketing chain system.
Don't fall for the smooth talk of these crooks you would end up losing all your hard-earned money and relationship with your friends and relatives.

nationwide said...

good jobs at all

Outsourcing Accounting

Karan Samal said...

Dont always discourage people for everything. What do u want them to do? Do NOTHING!!! just like you.. its easy to write a blog than go out and work in the real world. Those people who HAVE to be successful, are successful by following any MLM organization whether legal or illegal.

Shyam Sundar said...

It is better not to do anything instead of indulging in criminal activities. Joining and making others join in such schemes is a crime.
Andhra Pradesh High Court held that the business model of Amway is illegal and later the Supreme Court of India also upheld that judgement.
When the high courts of various States in the country held that multilevel marketing is illegal, how could you people join in such illegal and criminal activities.
History says that 99 per cent of people lost their money in MLM schemes.