QNET Response On Arrest Of 8 Distributors In India

JR Mayer, Managing Director, QNET


This statement is in response to various media reports within the last 24 hours wherein various aspects about the ongoing investigation on QNET in India have been incorrectly reported. QNET expressly through this PRESS STATEMENT clarifies the following:

1. It has been alleged that QNET operates a “binary” compensation plan. This is not correct. QNET operates a “hybrid” compensation plan that is accepted worldwide.

2. It has been alleged that the “binary” compensation plan is banned in India. This is not correct. There is no law that currently legislates this industry as-of-now and no clear legislation banning the “binary” or any other compensation plan. In any event QNet’s compensation plan is not binary in nature or form.

3. It is alleged that 8 company executives have been arrested. This is not correct. The arrested individuals are QNET ‘Distributors’ or ‘Independent Representatives’ (IR’s – as they are referred to in QNET).

4. It has been alleged that the 8 arrested QNET IR’s have earned their commissions through “referrals” or “recruitment” pointing the business to be a ‘Pyramid Scheme’. This is not correct. QNET pays commissions on ‘SALE’ or ‘PURCHASE’ of products only. Numerous supporting documents have been already provided to the Mumbai EOW confirming this.

5. It has been alleged that QNET draws “investment” from members. This is not correct. QNET is not in the business of investments but only conducts sales of products for which commissions are earned.

6. It has been alleged that only the IR’s on top make money. This is not correct. QNET provides equal opportunity to everybody to earn commissions. Again, documents confirming this have been provided to the Mumbai EOW on this fact. QNET is, through its representatives, in the process of further clarifying the same with Mumbai EOW. In the meantime, for the last 3 months QNET has further extended its full cooperation to investigating authorities with numerous documents already having been submitted.

Directors and various officials have appeared to explain matters as well. We remain confident of receiving justice sooner or later. QNET is amongst the leading Direct Selling Multi-level-marketing companies is Asia and amongst the early few to have entered India. Also, QNET continues to operate in India as it has not been convicted or banned by any courts in the country. In 2008 The CB-CID had initially claimed that more than 30,000 people were defrauded by GoldQuest/Questnet and had alleged various other irregularities.

After more than one year of investigation, they were unable to find any wrong doing and only 200 names were submitted as 'legitimate' complaints wherein these people had not received their products. When the company checked their names in the database it was found that the only reason these people had not received the products were because of either wrong address, or their orders were received just before the Chennai police has seized all the products in the warehouse hence preventing the company from sending their products out.

Further to this order, the Supreme Court ordered the appointment of a settlement commissioner to deal with these claimants and all of them have now been settled. QNET is a Direct Selling Multi-Level-Marketing company. MLM also refers to Network Marketing and is just a methodology utilized by Direct Selling companies to sell products. No illegality attaches to the terms or business in India. QNET does not promise or encourage its IR's to promise any sort of return to prospective IR's.

A clear and concise explanation of the Company's stand on this matter is published in the Company's website under the title of Earnings and Income Disclaimer https://www.qnetindia.in/ en/footer/earnings_and_income_disclaimer/

Get more information, facts and figures about QNet, click here for the QNet overview.

Become a Recommended Distributor

Direct Selling Distributors, they are active professionals, who love to team up with you!

Comments (1)

  1. I had a unimaginable inclusion with MLM in India. I am working with a MLM association for latest 3 years. I bombarded in benefitting in these 3 years as I foreseen from the essential day yet I took in a huge amount of basic things from here. I made myself before myself. I made sense of how to live with people, how to win people, how to support people and how to serve them. I developed stacks of business understanding.

Write a comment

Connect with