 "Sessions court grants four-day police custody of four QNet officials and shareholders")
The Sessions Court of Mumbai on Friday granted four days of police custody of two former directors and two shareholders of the Hong Kong-based marketing franchise QNet in connection with online cheating case.
Acting on the first initial report (FIR) filed by Anuj Jain, a customer of QNet, against three Independent Representatives of Vihaan Direct Selling India Pvt Ltd, a 100% subsidiary of QNet, the Economic Offences Wing (EOW) of the Delhi police sought remand custody of four directors of QNet. Under vicarious liability, the Supreme Court on September 30, 2016, directed the Mumbai EOW to carry out the investigation. Since then, these two ex-directors – Magaral Balaji and Srinivas Rao Vanka and two shareholders – Malckolm Desai and former world billiards champion Michael Ferreira, have been in service custody in Mumbai. These directors and shareholders were surrendered before the court on September 30, 2016.
Now, the Delhi police is transferring these ex-officials and shareholders of the QNet to Delhi from Mumbai to produce before the competent magistrate on Monday.
“The move comes as a surprise to the company in view of the order passed by the Hyderabad High Court (on November 7) granting a stay on all further proceedings against the company officials in the state. The company expressed its disappointment on the development as the Delhi EoW is being granted permission to take custody of the Vihaan officials in a similar case,” said a company official.
Also, the Delhi High Court on Friday adjourned the hearing for November 16 on a petition seeking stay on the remand request made by Delhi EOW in the QNET case. The petitioners are ex-directors and shareholders of Vihaan Direct Selling (India) Pvt Ltd, franchisee of QNET in India.
“In fact, the investigation is continuing since 2013. The Mumbai EOW has been investigating allegations against QNet for more than three years and no charge sheet has been filed till date. The company’s business is going as usual. In this process, we believe the law of land is now followed properly,” said the official.
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QNet clarified that it does not solicit investments, take deposits or offer jobs to its business representatives. The company has a well laid out policy on ethical marketing practices and adheres to it without any compromise.
“We have full faith in the judiciary system and are confident that the truth shall prevail since we are complaint with the laws of the country. QNet is in the business of selling products and compensates its independent representatives accordingly,” said the official.
Meanwhile, the bail application for Magaral Balaji, the ex-director of Vihaan which was supposed to be held on Saturday has been scheduled for hearing by the MPID court on November 22, 2016.
QNet is one of Asia’s leading direct selling company that offers a portfolio of lifestyle products to customers in more than 100 countries through its proprietary e-commerce platform. The company also offers an entrepreneurial network marketing business opportunity. QNet has offices and agency representations in 25 countries around the world and employs approximately 1,000 employees.