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QNet: MPID Court says activities of the MLM are

not legal
Moneylife Digital Team
01 April 2017 26

While granting bail to two accused in the multi-crore QNet multi-level


marketing (MLM) fraud case, the special Maharashtra Protection of Interest of
Depositors (MPID) Court said the activities of the MLM are not legal. The
MPID Court granted bail to Srinivas Rao Vanka, Magaral V Balaji and Aditi
Mitra.
"I would also like to mention here that prima-facie the activities of QNet
seems to be not legal. The reasons for the same is already discussed in the
bail orders of the co-accused. Hence pending the final hearing of the petition
before the Supreme Court, they cannot be allowed to continue with the same
or similar or like illegal activities, "Justice DP Surana said in an order issued
on 30 March 2017.
Based on the decision given by the apex court, the MPID Court granted bail
to Vanka, Balaji and Mitra on similar terms and condition as stated by the
Supreme Court while giving bail to prime accused Michael Ferreira, the
former world billiards champion, and his partner Malcolm Nozer Desai last
week.
Requesting the MPID Court to reject the bail applications, Gurupreet Singh
Anand, the complainant in the case, stated that the Bombay High Court has
held the activities of QNet as illegal which was confirmed by the Apex Court
and as such, the illegal activities should not be continued.
In his order, the Special Judge of MPID Court stated, "The role of applicants
(Vanka, Balaji and Mitra), as regards to Section 3 of the MPID Act is
concerned, being Director, Independent Representative (IR) or trainer will be
less to the role of Michael Ferreira and Malcolm Desai. So also, when the
order of the Apex Court, is very clear that there shall be stay on further
proceeding in all the 19 first information reports (FIRs) pending hearing and
final disposal of the petition, there is no propriety in keeping the applicants
too behind the bars."
Earlier, the Bombay High Court had rejected the anticipatory bail applications
of all the accused calling the whole business of QNET as prima facie illegal
business.
The HC order mentioned "The motto of the company 'sell more, earn more'
appears very attractive and innocuous. However, this motto is fully
camouflaged. The company stands on a basic statement that people can be
fooled. Thus, the true motto is 'sell more earn more' by fooling people. In fact
it is a chain where a person is fooled and then he is trained to fool others to
earn money. For that purpose, workshops are conducted where study and
business material is provided with a jugglery of words, promises and dreams.
Thus, the deceit and fraud is camouflaged under the name of e-marketing
and business."
"It has very grave and serious impact on the economic status and mental
health of the people on a large scale. On considering parameters of section
438 of the Code of Criminal Procedure, I am not inclined to protect the
accused. It will not be out of place to mention that such circulation is
required to be stopped. It is necessary for the prosecution to take injunctive
steps against this business activity, which is prima facie, illegal.
Even, the Serious Frauds Investigation Office (SFIO) had termed the whole
business of the QI GROUP in India as a threat to the national security said
the whistle blower Gurupreet Anand who submitted the SFIO report in
Bombay High Court as well as Supreme Court of India along with other
documents and the Supreme Court had dismissed all special leave petitions
(SLPs) filed by all the accused ordering them to surrender within seven days.
In February 2014, the Enforcement Directorate (ED) too had registered a
case under the prevention of money laundering act (PMLA) against QNet,
Vihaan Direct Selling, Ferreira and QNet founder Vijay Eswaran and three
other independent representatives (IRs) of the MLM operator.
Gurupreet Singh Anand, a computer consultant from Lokhandawala, Andheri
in his first information report (FIR) stated that his wife was duped for
Rs30,000 by some people who had introduced themselves as the
independent representatives (IRs) of QNet. Anand told the police, They (IRs)
had said that one of the bio-products my wife bought could be used to treat
my 12-year-old son's brain-related diseases.
Here is the order passed by the MPID Court

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