Latest News | Direct Selling Entities in Compliance with All Laws: ADSEI

New Delhi, Apr 19 (PTI) The Association of Direct Selling Entities of India (ADSEI) on Tuesday said its members operate maintaining transparency and in compliance with the strict guidelines and regulatory framework in the country.

This comes a day after the Enforcement Directorate (ED) attached assets worth over Rs 757 crore of Amway India, as part of a money laundering investigation.

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The direct sellers body also said the industry has now switched to use of technology to conduct digital transactions, aligning with the government's Digital India initiative and bringing in much-needed clarity in the way businesses are conducted in India.

"There are strict guidelines and a regulatory framework within which all industry members operate to maintain transparency and compliance. The industry and its stakeholders continue to put their faith in the Indian law and abide by it," ADSEI Secretary Hem Pande said in a statement.

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Pande, the former secretary of the Ministry of Food Distribution and Consumer Affairs, further said despite economic setbacks during the pandemic, the direct selling industry has grown exponentially, creating economic opportunities for the large Indian population in the tier II and III towns as well.

"Direct selling companies continue to play a key role in enabling empowerment of millions and making them financially independent, which is crucial to the government of India's vision of an Atmanirbhar Bharat," he added.

ADSEI said the "sector has also been instrumental in providing employment to nearly 12.2 crore people, who lost their jobs during the pandemic-impacted period".

The industry body further said, "To enable transparency and safety, the direct selling industry has now switched to the use of technology to conduct digital transactions. This has aligned the industry with the government's vision of creating a Digital India and bring in much-needed clarity in the way businesses are conducted in India."

This has also enabled better quality checks of the products and a centralised platform of engagement with customers and distributors, it added.

The Enforcement Directorate (ED), in a statement issued on Monday, alleged that Amway India was perpetrating a "scam" by running a pyramid "fraud" in the guise of direct selling multi-level marketing network.

Amway on its part 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.

A spokesperson had said the company is cooperating with the authorities "towards a fair legal, and logical conclusion of the outstanding issues".

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)