New Delhi: The Enforcement Directorate (ED) has attached assets worth over Rs 757 crore, of one of the country's most known multi-level marketing (MLM) and direct-selling companies, Amway India, as part of a money-laundering investigation.

The federal agency issued a statement on Monday, alleging that the company was perpetrating a "scam" by running a pyramid "fraud" in the guise of a direct-selling MLM network.

"The entire focus of the company is about propagating how members can become rich by becoming members. There is no focus on the products.

"Products are used to masquerade this MLM pyramid fraud as a direct-selling company," the ED alleged.

An Amway spokesperson said they are cooperating with the authorities "towards a fair, legal and logical conclusion of the outstanding issues".

The ED issued a provisional order under the Prevention of Money Laundering Act (PMLA) for the attachment of assets worth Rs 757.77 crore belonging to Amway India Enterprises Private Limited.

It said the company is accused of "running a multi-level marketing scam",

The attached properties include land and factory buildings of Amway located in the Dindigul district of Tamil Nadu, plant and machinery, vehicles, bank accounts, and fixed deposits.

Amway said the ED action was with regard to an investigation dating back to 2011 and since then the company has been cooperating with the agency and has shared all the information sought by it from time to time.

Officials involved in the probe said the company had been operating in the country for years and many people were linked to its MLM scheme.

The agency said the company collected a total amount of Rs 27,562 crore from its business operations during 2002-03 to 2021-22 and of this, "paid" a commission of Rs 7,588 crore to its distributors and members in India and the United States from 2002-03 to 2020-21.

"A money-laundering in- investigation by the ED revealed that Amway is running a pyramid fraud in the guise of direct-selling multi-level marketing network.

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"Without knowing the real facts, the common gullible public is induced to join members of the company and purchase products at exorbitant prices and are thus losing their hard-earned money," the federal agency said.

The new members, it said, are not buying the products to use those, but to become rich by becoming members C as showcased by the upline members.

"The reality is that the commissions received by the upline members contribute enormously in the hike of prices of the products," it said.

Source-PTI