•Bail granted to shareholders based on protection of fundamental rights
Mumbai, 4th March, 2017 (GPN) : The Supreme Court early last week ordered the granting of bail to World billiards champion Michael Ferreira and his associate shareholder Malcolm Desai in the QNet case. Both had been under custody for more than 6 months after having surrendered on their own following a complaint filed in Mumbai by one Gurupreet Singh Anand.
The Supreme Court has stayed proceedings in all the 19 FIRs filed against QNet, its sub-franchisee Vihaan Direct Selling (India) Pvt Ltd and its executives and shareholders across the country. The bail was granted on grounds of protection of fundamental rights.
Ferreira and Desai in their petition had argued that their business module was in compliance with guidelines on direct selling issued last September by the Consumer Affairs Ministry.
Last year Michael Ferreira along with three others had surrendered before the Mumbai Police after an FIR had been filed against them by Oshiwara resident, Gurpreet Singh Anand. Anand, a computer consultant from Lokhandawala, Andheri in his FIR had stated that his wife was duped for Rs 30,000 by some people who had introduced themselves as the independent representatives (IRs) of QNet.
Granting them relief, the two-judge bench said in its order, “having regard to the fact that the petitioner 2 and 3 before us viz., Michael Joseph Ferriera and Malckolm Nozer Desai are detained in jail custody for about 6 months, they are directed to be released on bail, subject to certain conditions.” The petitioners also argued that Vihaan’s business complied with all legal requirements of conducting business in India.
According to a statement issued by QNet in Mumbai, the petition contended 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 direct selling business is today a $183.7 billion industry globally with more than 100 million people involved in it. In India, an estimated 40 lakh people are involved in this industry, and Indian companies generated approximately $1.18 billion in revenues in 2015.
Ministry of Consumer Affairs had issued Direct Selling Guidelines 2016 in September 2016. The model guidelines clearly indicate that multi-layered network of subscribers to a scheme formed by a direct selling company, which consists of subscribers enrolling one or more further subscribers in order to receive any benefit, directly or indirectly, where the benefit is, as a result of sale of goods or services for such subscribers, is not illegal.
The company also said it has been also argued that Vihaan’s business complied with all legal requirements of conducting business in India.
