The Indian Enforcement Directorate authorities have found after a thorough investigation into its activities that Amway India has illegally siphoned out of the country Rs. 8,000 crore (Rs. 80 billion) to the USA. The Directorate has issued a show cause notice to Amway India Enterprises to that effect.
“The multilevel marketing company Amway India has siphoned out Rs. 8,000 crore from India illegally,” a top official of Enforcement Directorate said.
He also said that the Enforcement Directorate has been probing violations of Foreign Exchange Management Act (FEMA) indulged in by Amway India.
“We have issued show cause notice to Amway after completing the investigation. The violations regarding FEMA are being looking into for the repatriation of Rs. 8,000 crore in the past ten years, said the ED source.
The Corporate Frauds Watch has been raising the issue with the officials at various levels for the last several years that there were violations and the Amway India has been illegally siphoning out large scale of funds from the country.
Amway India has been claiming that it is investing Rs. 500 crore for setting up a plant in Tamil Nadu. But the fact it has illegally siphoned out the funds up to Rs. 8,000 crore and Rs. 500 crore is just peanuts.
In the name of multilevel marketing, the fraudulent company has been mulching the Indians and it is high time, the people realized the fraudulent activities of Amway India. The Corporate Frauds Watch estimated that Amway had siphoned out Rs. 10,000 crore during the last 15 years of its existence in the country. Now the cat is out of the bag and the Central Government should take initiative to curb the illegal business activities of the multilevel marketing company.