The Free Business For Home App: Direct Selling News, Company Analysis and Market Data

Download for free:

JR Mayer, QNET

QNET Offers Full Cooperation On Scam “Allegations” To Indian Government

 

Zaheer Merchant, Director of Corporate Affairs from the international offices of QNet Ltd [QNet], has written to the Economic Offences Wing of the Mumbai Police in response to the 'scam' allegations made against QNet India.

In the letter he offers full cooperation and will provide any information which the Economic Offences Wing may require.

Furthermore he believes the Economic Offences Wing will take appropriate action and bring criminal proceedings against those who are shown to have made false allegations.

He has also stated that QNet intends to bring civil proceedings against any who have acted in any way to damage its reputation or that of its Group, once their lawyers have reviewed all the available information.

QNet has previously stated the situation surrounding QNet India in Mumbai appears to be an orchestrated and sustained attack against the company to undermine its reputation and to prevent it from competing fairly and openly in India.  

Facts about the allegations around QNet in India

In April 2013, Parmeet Kaur, the wife of computer consultant Gurupreet Singh Anand, filed a complaint against three Independent Representatives [IRs] and its local franchisee in India, Vihaan Direct Selling (India) Pvt. Ltd. [‘Vihaan’] at Oshiwara Police Station in Mumbai.  

The complaint alleged that three representatives of Vihaan Direct Selling sold Parmeet Kaur a bio-disc which would be able to 'help her son's brain damage'.  The three representatives deny misrepresenting any product to Parmeet Kaur as this would be in breach of the agreement they signed with Vihaan Direct Selling. Company records indicate that Parmeet Kaur did not agree to purchase a bio-disc but signed up for an educational course. This was cancelled by her husband along with the cheque.

The three representatives who allegedly misrepresented matters were not amongst those subsequently arrested for fraud.

The original complaint made by Parmeet Kaur was withdrawn on 18th May 2013.  The fact Parmeet Kaur's cheque to pay for the product was cancelled was cited in the police's closing report, which clearly shows that Parmeet Kaur was not a victim and under the circumstances no crime was committed.

On 16th August 2013 (3 months after the original complaint was deemed not to be a crime), the complaint was refiled by Parmeet Kaur's husband, Gurupreet Singh Anand.  This is in spite of the fact that no money changed hands between Parmeet Kaur and Vihaan Direct Selling and there has been no other change in circumstances.  Gurupreet Singh Anand confirmed in an interview that he cancelled the purchase before any product, as he claims, was received. This matter was recorded as a 'No Crime' by the Police when first reported and there has been no further change in this position. Independent legal review from various top senior Advocates in Mumbai confirms there is no evidence of any crime.

On 16th August 2013, as a result of this complaint by Anand, Vihaan Direct Selling's Office in Bangalore was visited by police officers from the Economic Offences Wing of Mumbai. Due to the absence of a legislative framework, which makes the task of differentiating Direct Selling Multi-Level Marketing companies from fraudulent Ponzi schemes impossible, the Economic Offences Wing of Mumbai Police seized several million dollars of assets and subsequently arrested nine Independent Representatives, including two couples, who were held with charge for weeks.

Those who misled the police or conspired and promoted the arrests, the freezing of substantial funds and assets based on a transaction, which didn't actually take place, will be subject to both criminal and civil complaints and litigation, the nature of which is presently under review.

  • QNet, a leading direct selling company, runs and licenses operations in over 100 countries.
  • QNet currently operates in India through a franchise model with Vihaan Direct Selling India Pvt. Ltd as its local partner.  
  • Vihaan Direct Selling owns and is responsible for managing QNet India's direct selling business including product delivery, commissions payment, warehouse and physical product delivery management, customer care and after-sales product support.
  • QNet has always complied with local regulations in any country it has operated in and contributes to numerous philanthropic activities.
  • QNET's grass-roots business model enables ordinary people from all walks of life to start their own business with minimal overhead.  With hard work and dedication, QNET distributors, known as Independent Representatives (IRs) have the opportunity to become economically self-sufficient, raising the standard of life for their families and communities.
  • QNet operates under a strict code of conduct: https://www.qnetindia.in/en/footer/code_of_ethics/  
  • QNet has a clear Earnings and Income Disclaimer: https://www.qnetindia.in/en/footer/earnings_and_income_disclaimer/

About QNET:

As a prominent Asian direct selling company, QNET provides a wide range of life-enhancing products that are offered through its proprietary e-commerce platform to customers and distributors in more than 100 countries. The company also has some 25 offices and agencies worldwide, and more than 50 stockists, apart from localized operations or franchisees in a number of countries. In India, QNET operates through franchisee companies based in Bangalore.

Established in Hong Kong in 1998, QNET is a member of the Direct Selling Association of Malaysia, Singapore, and the Philippines. QNET is also a part of the Hong Kong Health Food Association and the Health Supplements Industry Association of Singapore among others.

QNET is active in sports sponsorships around the world, including Formula 1, football, badminton and more, due to the company's strong belief that the drive, passion and teamwork of sports mirrors that of QNET. For more information, please visit the QNET website at https://www.qnetindia.in

About Vihaan Direct Selling India Pvt. Ltd.:  

Vihaan Direct Selling India Pvt. Ltd. is a company headquartered in Bangalore (India) incorporated September 2011 with the objective of marketing all kinds of consumable products and services throughout India, utilizing all forms of marketing including direct online, referral and multi-level selling. Since inception till March 2013 Vihaan Direct Selling was a sub-franchisee of QNET responsible for product delivery, commissions' payment, warehouse and physical product delivery management, customer care and L1 after-sales product support. From April 2013 onwards Vihaan Direct Selling entered into a direct agreement with QNET for managing QNET's Indian Direct Selling business.  Vihaan is a member of ASSOCHAM (The Associated Chambers of Commerce and Industry of India).

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

Load more