Hyderabad : Following the allegations made by some distributors in line with cheating harrasment, Criminal Investigation Department (CID) officials have on Monday raided offices of multilevel marketing firm Amway Corporation in Andhra Pradesh.

The state police has conducted a massive search and seizure operations at the offices of ‘Amway India Enterprises’ located in Hyderabad, Visakhapatnam, Vijayawada, Guntur, Nellor, Tirupati and other towns.
 
The police registered cases against the company and half-a-dozen persons involved in its operations under various sections of IPC,  including Section 420, and the Prize Chits and Money Circulation Scheme (prevention) Act of 1978. 
 
It is for the first time in the state and elsewhere that Amway, which runs direct marketing operations by offering incentive to  members on enrollment of new members, has run into trouble with the law enforcement agency. The police seized a number of  documents and articles from the Amway facilities. 
 
The allegations stated that the chain distribution schemes adopted by Amway and other such direct selling companies were resulting in financial benefit for a few who had joined at the beginning of the scheme and financial loss to a very large number of contributors who had joined the scheme at a later stage. 

Amway currently markets over 75 products in four categories and has 74 offices and 55 warehouses across the country besides  having a manufacturing unit in Hyderabad.