SC affirms the stay in QNET Case 

Dismisses application filed by the State of Maharashtra seeking vacation of stay.

 

Direct selling company QNet and its sub-franchisee Vihaan Direct Selling (India) Pvt. Ltd were granted further relief today when the Supreme Court issued a written order granting no interference to the stay issued earlier in March.

 

Bench of Justice Nariman and Justice Kaul heard the matter briefly and observed that the stay granted on the earlier occasion needs no interference. The court thereafter dismissed the application filed by the State of Maharashtra seeking vacation of stay.

 

The Hon’ble Supreme Court sought information from the State on the status of the appointment of the Monitoring Authority. In response, the state of Maharashtra indicated that they have not taken any steps in this regard.

 

Earlier on March 27, 2017, the Supreme Court had ordered a stay on all FIRs and proceedings against QNet's business in India. The order is seen as a positive development for the direct selling industry as it comes at a juncture when the government is trying to instill confidence in the industry with the introduction of the model Direct Selling Guidelines.

 

The SC stay paves the way for legal proceedings and investigations to take a logical turn for the better of all stakeholders.

 

In certain countries, the Direct Selling Association, a self-regulatory body works closely with consumer associations to provide independent accreditation for direct selling companies. In Malaysia, the Direct Selling Association works closely with the Ministry of Domestic Trade, Co-Operatives and Consumerism, Ministry of Finance, Ministry of Health and other government bodies to create and maintain an environment that is conducive to the growth and stability of the industry in Malaysia. DSA Malaysia’s Code of Conduct is an example of self-regulation. It is a strict and effective code of conduct implemented worldwide, and endorsed by the Ministry of Domestic Trade, Co-operatives & Consumerism. QNet is a member in various DSAs. It would help to have an independent self-regulating organisation in India under the purview of the Ministry that is not controlled by any one company.