Supreme Court Of India Rules In Favor Of QNET

Trevor Kuna, CEO, QNET


In a major development the Supreme Court has ordered a stay on all further proceedings against direct selling company QNET and its franchisee Vihaan Direct Selling Pvt Ltd (Vihaan).

It fundamentally also granted bail to its Indian shareholders Michael Ferreira and Malckolm Desai. QNet, which has been under investigation since 2013, views this with positivity thereby.

The order comes at a timely moment given the backdrop of the model Direct Selling Guidelines issued by the Ministry of Consumer Affairs for proper functioning of Direct Selling companies in India.

In an interim order, a two-judge bench comprising Mr. Justice Pinaki Chandra Ghose and Mr. Justice Rohinton Fali Nariman categorically stayed all FIRs against the business of QNET in India.

The Supreme Court has also stayed further proceedings in all 19 FIRs against the company across India.

As per the order of the Hon’ble Supreme Court, the FIRs are being stayed on the grounds mentioned in the Writ Petition. The petition explains that the business model followed by Vihaan Direct Selling (India) Pvt. Ltd is not a money circulation scheme as alleged and does not fall under the purview of the Prize Chits and Money Circulation (Banning) Act 1978. The petition further states that the business of Vihaan is compliant with all legal requirements of conducting business in India.

After six long months especially for the individuals needing bail, the Supreme Court unequivocally granted bail to the shareholders of Vihaan – Michael Ferreira and Malckolm Desai, who had surrendered before authorities in September 2016 for custodial enquiry.

The investigation into QNET and Vihaan arises from a misconceived complaint filed by self-proclaimed activist, Gurupreet Singh Anand in August 2013.  Anand had alleged that his wife had purchased a product and had been cheated by representatives of the company. Records from the company prove that Anand’s wife Parmeet Kaur had placed an order for an online education product valued at Rs.30,000 but had cancelled the payment before the order was processed and hence no commercial transaction ever took place between her and QNET.

Thereafter multiple baseless allegations were made against QNET’s products and its business model.

Commenting on the development Raj Vasudevan, Chief Legal Officer of QNet  said,

“This order is a vindication we have been seeking for more than 3 long years. It has come at a very apt time when the government is trying to instil confidence in this industry with the introduction of the Model Direct Selling Guidelines.”

The order from the Supreme Court comes soon after the Hon'ble High Court of Karnataka had allowed quashing of the chargesheet filed by the CID in Bangalore. It may be noted that the Hon'ble Justice Anandbyra Reddy has categorically stated that QNet is not a Ponzi scheme and the company does legitimate business in his detailed order. Also to be noted that the Hon'ble High Court of Telangana and AP had stayed all proceedings against the company in late 2016.

Karnataka High Court quashed a similar FIR and chargesheet against QNET last month stating that multilevel marketing does not constitute offences under the Prize Chits and Money Circulation Schemes (Banning) Act, or the charge of cheating under the IPC.

In October last year the Hyderabad High Court had granted a similar relief to the directors and shareholders of Vihaan Direct Selling Pvt Ltd, and stayed all proceedings against the company in the state.

QNet has fully cooperated with the investigation and has submitted more than 50,000 pages of documents in the course of the last three years to the relevant authorities to prove its legitimacy.

The company reiterates that it runs a legitimate direct selling business and promotes a wide range of high quality, innovative health, wellness and lifestyle products through its proprietary e-commerce platform.  QNet is also a staunch advocate of ethical marketing practices in network marketing and is committed to the sustainable development of the industry in India.

The Order comes at a crucial juncture and endorses these elements for the present.

About QNET:

QNET, a prominent Asian direct selling company, provides a wide range of life enhancing and luxury products that are offered through its proprietary e-commerce platform to customers and distributors in more than 100 countries. The company also has over 25 offices and agencies worldwide, and more than 50 stockists, apart from localised operations or franchisees in a number of countries.

Established in Hong Kong in 1998, QNET is a member of the Direct Selling Associations in Malaysia, Singapore, the Philippines, and Indonesia. QNET is also a member 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 football, badminton and more, due to the company’s strong belief that the drive, passion, and teamwork of sports mirror those of QNET. QNET recently signed a new and exciting partnership with Manchester City Football Club (MCFC), as its official direct selling partner for three years. For more information, please visit the QNET website at

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

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Comments (9)

  1. qnet in Ghana is a lot f complexities.
    It consists of people who have a deliberate mentality to deceive people and steal money from them in order that they may be rich. Those who fall into their traps and later become victims and still want to have their monies back join the line and the more they cheat others the more they gain money for themselves. They are too influential in their lies and deceptives.
    I don’t trust the judges in the court.
    Judges are humans and some humans are liars.
    cannot some of these liars be part of the Judges. certainly yes. Folks be careful.

  2. Its a full of lie and froud, its a mal practice of business through legal support. We all knew that money can influence any judgment.. Its a same unethical business practice.

  3. Great company which is proving many opportunities for the public. India has to support this company and Direct selling Industry as India is getting more profits from this industry especially from this company

  4. For physical products of QNET what one might say like biodisk it might be costly & overvalued ,what one will say about high value hotel stay for life time ,when practically QNET doesn’t own any hotel of it’s own and if one wants to avail such facilities it’s only allowed for it’s own conferences only as for individual use or for friends & families it’s big no whether in India for Vihan franchise etc here is the main fraud of QNET ,You pay money for lifetime hotel stay which you’ll not be allowed to stay even for a day for yourself or your friends & families.This is big cheating of lacs of rupees in India

  5. Please use Tripsaver for booking hotels in india and it will give you cheapest price in the world , first use then judge , you are just misleading others , i used this so many times and its awesome.

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