Vihaan is a sub-franchisee in India of the Hong Kong-based direct selling company, Qnet. It so happened that on 25 January, 2019, an interim was passed by the Supreme Court of India in favor of Vihaan direct selling (India) Pvt. Ltd. The Supreme Court order stated that there was ‘no coersive action’ against Vihaan direct selling (India) Pvt. Ltd. who are the petitioners of the case. The order also stated that no coersive tips should be undertaken when it comes to the FIRs that provide against Vihaan direct selling (India) Pvt. Ltd. and this was addressed to the respondents together with the state of Telengana.
On 26 January, 2019 three persons were arrested by the Cyberabad police including the director of Vihaan direct selling (India) Pvt. Ltd, Dilip Raj, together with two other independent representatives, namely, Chandar Kumar Chowdary and a businessman called Atur Kumar. The three you are rested on alleged charges that they were running a Ponzi scheme which functioned in a way of a multi-level marketing business of Qnet.
Dilip Raj, the director of Vihaan direct selling (India) Pvt. Ltd, pleaded is innocence through a video put out to the media that he did not possess any knowledge about the financial deals of Qnet. He said that being a sub-franchisee, Vihaan direct selling (India) Pvt. Ltd have no authority to dictate the financial decisions of Qnet.
The response from Qnet follow after the arrest and they claimed that the Cyberabad police while undertaking the wrong coersive action against the sub-franchisee, Vihaan direct selling (India) Pvt. Ltd, by arresting its director and use of plastic out that there was no conformity to civil or criminal law in the action therefore categorizing it as a direct content of the Hon. Supreme Court of India’s order. Qnet went ahead to name the arrest by the Cyberabad police as police brutality stating that the director of Vihaan direct selling (India) Pvt. Ltd was forced into recording the video that circulated through the media reports through the many threats of police action.
Qnet stated that they had requested the transcripts of the arrest that was against the order of the Hon. Supreme Court of India and that they would present it before the Hon. Court. Qnet revealed that its distributors only earn commissions as a derivative of product sales and when the FIRs go to claim that the company is involved in a Ponzi scheme makes no sense at all.
Qnet also wished for the public to know that Vihaan direct selling (India) Pvt. Ltd operates by the full financial guidelines of the Central Government’s Ministry Of Consumer Affairs as well as the state of Telengana.
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