Certain media outlets in India have recently published reports about QNET’s operations in India. While we appreciate media scrutiny, some of these reports contain inaccuracies and unsubstantiated claims that besmirch the reputed brand of QNET. To ensure transparency and address any misconceptions, we’d like to directly clarify our position on these matters.
QNET’s franchisee in India, Vihaan Direct Selling (India) Pty. Ltd., has noted with alarm that the contents of the article in these media circles which contain numerous instances of unsubstantiated and incorrect information. QNET therefore seeks to address specific aspects for the benefit of its customers.
Below are our responses to each of the published allegations:
Allegation 1: Govt. Urged To Put an End to QNet Supply Chain Before It Claims More Lives
This attribution is baseless, unfounded and a clear attempt at click-baiting. QNET is a 26-year-old, established direct selling business. We firmly stand by our commitment to providing life-enhancing products to our customers, as well as distributors who are building their own independent sales business by promoting these products.
Allegation 2: Governments have to take a strong stand against the illegal pyramid and ponzi schemes
The allegations of QNET being involved in “illegal pyramid and ponzi schemes” lack any substance. QNET operates in India through its sub-franchisee Vihaan Direct Selling (India) Pvt. Ltd., as an e-commerce-based direct selling company offering a diverse range of health, wellness, and lifestyle products.
We are especially alarmed by this assertion considering that all First Information Reports (FIRs) against Vihaan have been ‘stayed’ by the Honourable Supreme Court of India as of March 2017.
The landmark Supreme Court Order as reported by media circles is here!
Furthermore, the Honourable High Court of Karnataka, while “quashing” a criminal complaint, made significant observations regarding Vihaan’s business operations in India, as highlighted in the news link here. These observations categorically refute any insinuation of Vihaan’s business being a ponzi scheme:
“Material of unimpeachable character pertaining to the activities of QNET have been produced before the Court. A perusal of the material and the charge sheet averments prima facie indicate that the activities of QNET and Vihaan, i.e., the multilevel marketing companies, do not constitute offences under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978. The activities of the company do not fall within the definition of ‘Money Circulation Scheme’ under Section 2(c) of the Act, nor does it fall within the definition of ‘Prize Chit’ under Section 2(e) of the Act. When the activities of these companies do not constitute either Money Circulation Scheme or Prize Chits, the offences under section 4 and 5 of the Act do not even remotely apply to such activities, and consequently charging the accused for such offences is unsustainable.”
In accordance with this Order, it is evident that any assertion of ‘making money’ through schemes or pyramiding is untenable.
Read: More about the business legitimacy of QNET India
Allegation 3: On March 8, a multi-level marketing agent from Rangareddy district had killed his three children and then himself as he could not tolerate the pressure of people, whom he had forced to deposit money in their schemes.
The insinuation linking extreme actions, such as the referenced deaths, to QNET or Vihaan is baseless and unfounded. The news reports about this tragic incident make no mention of a connection between the victims and QNet or Vihaan. It is an irresponsible and dangerous assumption, in the absence of any evidence, to attempt to connect this tragic incident with QNET or Vihaan.
Allegation 4: QNet’s parent organisation, Vihaan Direct Selling (India) Pvt. Ltd., has been involved in several anti-national activities like money laundering and running illegal ponzi schemes under several names from 1998 onwards apart from funding terrorist activities in the country.
These allegations are not just alarming, they are wholly inaccurate. Refer to the response under Allegation 2, above, where Vihaan and QNet have been clearly deemed not be a Ponzi scheme in the order from the High Court of Karnataka. Unsurprisingly, your additional accusations of Vihaan engaging in money laundering and financing terrorist activities also lack merit. At no point has Vihaan or QNet been accused of engaging in any funding of terrorist activity within or outside of India. This is a serious accusation and you have failed to provide any form of supporting evidence for these claims and therefore we are left with no choice but to reserve all our rights, in equity and law, in this regard.
Allegation 5: Registrar of companies issued a notice to the service providers about the fraudulent activities of Vihaan and QNet, India Post and Blue Dart terminated their contract with immediate effect
Contrary to the above statement, please note that – India Post has only intimated that the service of pre-deposit and certain other benefits are not renewed. The same is also clarified before the High Court of Karnataka in W.P. 7603/2024 in order dated 13/03/2024 where it is recorded in the order that services continue.
Allegation 6: They sell basic glass with a minimal carving on it, by marketing as an ‘energy provider’ and sell a product worth Rs 50 for Rs 35,000
We find it exceedingly egregious that certain independent associations seek to impugn the quality and exclusivity of our products. Rest assured, all our products undergo rigorous quality checks and adhere meticulously to global production and sourcing standards.
We emphatically implore media houses to refrain from disseminating any further unfounded information regarding QNET and Vihaan’s business. We believe that certain publications / channels are being exploited by propagandists who resort to nothing but criminal intimidation tactics.
