fraud in the guise of direct selling multilevel marketing network it is observed that the prices of most of the products offered by the company are exorbitant as compared to the alternative popular products of reputed manufacturers available in the open market without knowing the real facts the common gullible public is induced to join as members of the company and purchase products at exorbitant prices and are thus losing their hard earned money the new members are not buying the products to use them but to become rich by becoming members as showcased by the upline members reality is that the commissions received by the upline members contributed enormously in hike of prices of the products it said in a press releaseit argued that there is absolutely no focus on the products which are just used to masquerade this mlm pyramid fraud as a direct selling companywhat assets has the ed attachedthe rs 75777 crore assets attached consists of rs 41183 crores worth of immovable and movable properties and rs 34594 crore kept in 36 different bank accountsthe amway properties attached by ed include land and factory buildings in tamil nadus dindigul district machinery vehicles bank accounts and fixed depositswhat is amways defenceresponding to the charges in a statement amway india said the action of the authorities is with regards to the investigation dating back to 2011 and since then we have been cooperating with the department and have shared all the information as sought for from time to time since 2011 we will continue to cooperate with the relevant government authorities and the law officials towards a fair legal and logical conclusion of the outstanding issuesas the matter is sub judice we do not wish to comment further we request you to exercise caution considering a misleading impression about our business also affects the livelihood of over 55 lakh direct sellers in the country the company addedwhat is the difference between mlm and the pyramid scheme and where does amway standmultilevel marketing mlm companies use promotional strategy in which a salesperson sells the products or services for a particular mlm business and recruits new sales promoters under his her downline to further sales of products and services this is a system of marketing in which a hierarchical pattern is followed where the sales promoters are organized in a pyramid structureas per the rules where a multi layered network subscribes to a scheme formed by direct selling then it doesnt fall under definition of pyramid scheme there is a thin line of distinction between boththough yet to be seen on a bare reading of the aforesaid amway seems to be playing on thin ice with respect to such schemes said anushkaa arora principal founder aba law officewhy are pyramid schemes dangerouspyramid schemes are not legal in india but such schemes continue to happen india has for a long time struggled with containing mlm and ponzi schemes which violate the provisions of prize chits and money circulation schemes