The Mumbai Mirror reported that The Economic Offences Wing is on the trail of the pioneer of direct marketing, which is accused of running a national scam with its money circulation schemes (full article below).
According to the article, raids were conducted on Amway offices in September 2006 and criminal cases were booked against the company and some of it distributors.
Another article stated "In series of raids that ended on Wednesday night the Economic Offences Wing of the Hyderabad police shut down all offices of international multi level marketing firm Amway. With it, the fate of 80,000 distributors of the company has been sealed. The enforcement says the business model of the company is illegal."
Amway has contested the claim, which was recently heard in a court of law and is awaiting a decision. A retired scientist has filed a public interest litigation in the high court of Andhra Pradesh stating that that his two son's seven year involvement in Amway caused them to suffer both financially and morally.
A law enforcement official has advised that a consumer association has petitioned the Monopolies Restrictive Trade Practices Commission (MRTP) regarding "illegal and unethical practices".
Updates will be posted as these cases progress. See PDFs here: