The supreme court recently has ordered a stay on all
proceedings against Q net and its franchise Vihaan Direct selling pvt ltd.
Supreme court ha also stayed 17 other FIRs against the company. It has also
granted bail to its Indian shareholder Michael Ferreira and Malckolm Desai. Q
net was under investigation since 2013, but the order comes with all positivity
and comes at the time when model direct selling guidelines issued by the
ministry of consumer affairs for proper functioning of Direct selling companies
in India. Another interim stay order was issued by a two-judge comprising of
Mr. justice Pinaki Chandra Ghose and Mr. justice Rohinton Fali Nariman stayed
all FIRs against the business of Q net in India.
As per the order it’s not a money circulation scheme
as alleged and does not fall under the purview of money circulation or Prize
chits Act of 1978. The whole problem started when a misconceived complaint was
filed by Gurupreet Singh Ananad who had alleged that his was cheated by the
representatives of Q net when she had ordered
an educational product valued 30, 000 online. But it was found that
before the transaction took place between Qnet and the lady the order was
cancelled so the transaction never took place.
Though multiple baseless allegations were made
against Qnet’s products and business model but stay order has been issued
against all these allegations. The Supreme Court order came just after Hon’ble
High court of Karnataka had allowed quashing of the charge sheet filed by the
CID in Banagalore. Hon’ble Justice Anandbyra Reddy has stated that Qnet is not
a ponzi scheme but the company is a legitimate business. In 2016 the High court
of Telangana and AP has also issued stay
order against all proceedings against Qnet
in 2016. Hyderabad High Court had also granted similar relief. Qnet has proved
its legitimacy after submitting more than 50, 000 pages of document and now
runs a legitimate direct selling business and follows all ethics
