In a 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.

Superintendent of Police, CID, EOW, VC Sajjanar says, "Gullible people enrol without understanding the viability of the scheme. We have told people that enrolling in such schemes is illiegal. The act is very clear, Police have the power to search and seize any time. So people should not enroll."

Police sources say they have formed a special team to further investigate the matter and more arrests of officials linked with the company are likely.

They say that central economic enforcement agencies have also been brought in to investigate the matter. A representative of Amway told CNBC-TV18 that they will be contesting the CID claim.