The direct selling company Amway India is the target of a criminal case brought by the Enforcement Directorate (ED) on Monday in accordance with the Prevention of Money Laundering Act, 2002 (PMLA).

The Hon'ble Metropolitan Sessions Judge cum Special Court (PMLA) in Hyderabad has received the complaint, and it was granted cognizance that same day.

The Indian Penal Code (IPC), 1860 and several FIRs filed by the Telangana Police against Amway and its Directors are the basis for the ED's probe.

According to the probe agency, Amway has been defrauding the public by promising them extremely high commissions or incentives for enlisting new members and by claiming that these commissions or incentives would last forever. The allegations suggest that Amway engaged in promoting an illegal "Money Circulation Scheme" under the guise of selling goods.

Amway has been pushing a pyramid scam under the pretence of direct selling, according to ED's findings. Amway created a multi-level marketing strategy that involves numerous intermediaries in the form of distributors, rather than selling items directly to the final consumer.

Enrolling new members is the scheme's main means of survival, with commissions and incentives rising for those who go up the ranks.

According to the Enforcement Department, Amway's operations amount to a money circulation and multi-level marketing scheme that creates proceeds of crime totaling Rs 4050.21 crore through the scheduled offence of cheating.

Additionally, the investigation found that more than Rs 2,859 crore in funds that were taken from the members had been took and were being kept in foreign investors' bank accounts under the pretence of dividends, royalties, and payments for other costs.

In relation to this investigation, the Enforcement Department (ED) claimed to have attached immovable and mobile properties worth Rs 757.77 crore.

In this case, further inquiry is presently being conducted.

A spokesman for Amway India responded to the ED's prosecution by releasing a statement that discussed the inquiry, which began in 2011.