High Court Grants Stay to QNET
QNET welcomes the decision of the Hon’ble High Court of
Hyderabad which has seen merit in granting a stay
on all proceedings against the company, in the state. The
decision is a significant win for QNET which has been trying to defend its
business model in Mumbai for the last three years.
The order provides welcome relief to the directors and shareholders of Vihaan Direct
Selling Pvt Ltd, the sub-franchisee of direct selling company
QNET in India. The company and its officials have continued to cooperate with
the authorities in all investigations since 2013 and have submitted more than
50,000 pages of documents to support its stand as a legitimate business.
In a major relief to
direct selling company QNET, which has been trying to defend its business model
in Mumbai for the last three years, the High Court of Hyderabad has seen merit
in granting a stay on all proceedings against the company in the state. The
decision comes at a time when the government has taken steps towards
recognising and regularising the direct selling industry in the country. Last
month, the Ministry of Consumer Affairs had issued Direct Selling Guidelines
2016 for all companies operating in this space for many years in the country,
without a clear legislation in place to protect the companies or the consumers.
The thriving direct selling industry in India is estimated to have generated
approximately Rs.7200 crores in revenues in 2015. The decision by Justice Sri
Ramachandra Rao at the Hyderabad High Court grants welcome relief to the
directors and shareholders of Vihaan Direct Selling Pvt Ltd, the sub-franchisee
of direct selling company QNET in India. The company and its officers have
continued to cooperate with the authorities in all investigations since 2013
and have submitted more than 50,000 pages of documents to support its stand as
a legitimate business. (ANI)
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