·
Gross
misrepresentation of facts, says spokesperson
·
Consumer
complaint withdrawn, case closed by Oshiwara police
·
No purchase
done by Gurupreet’s wife, she bounced her cheque
·
Product
in question is e-learning item, not Biodisc
·
Business
model is direct selling, NOT pyramid
MUMBAI,
January 15, 2014: Pointing out a series of misrepresentation
of facts against it, Hong Kong-based direct selling company QNET stressed that
its operations across the globe, including in India, are perfectly within the
parameters of law and any allegations of scam are entirely baseless.
“As a business interested in
sustainability, we respect the laws of the land in any country that we operate
in and ensure compliance accordingly. Wherever necessary, we even adjust our
business model to suit local requirements. India is one such place where we
conducted our due diligence and made the necessary adjustments so that our business
model does not violate any legal provisions,” Mr Zaheer Merchant, Director of
Corporate Affairs from QNET’s international headquarters in Hong Kong, said
dismissing allegations of conducting an illegal business in India.
“QNet has no shell companies
in India as has been alleged. We operate through a fully Indian company that
has the franchisee rights to the QNet brand.” He clarified.
“QNet prides itself in
having a wide range of life-enhancing products and services with a strong
consumer proposition. We offer more than 30 different brands of products under nine
different product categories globally. Products are sourced from international
suppliers in Germany, Switzerland, Australia, South Korea, France, USA, India
and many other countries, under strict guidelines and the highest quality control
standards. Wherever applicable, our
products have all the necessary certifications by credible agencies from around
the world,” Mr. Merchant explained.
QNet is an international
direct selling company with a proud Asian heritage that was established in 1998.
Today it has more than 60 lakh distributors and customers around the world with
product sales in 100+ countries, 25 worldwide offices and agencies and more
than 50 stockists.
In India, QNET through its
franchisee Vihaan, has approximately 50,000 distributors and customers.
Commenting on the business model, Merchant explained that QNet's grass-roots business model enables
ordinary people from all walks of life to start their own business with minimal
overhead. With hard work and dedication, QNET distributors, known as
Independent Representatives (IRs) have the opportunity to become economically
self-sufficient, raising the standard of life for their families and
communities.
“Internationally, direct selling is a popular
business model that has generated more than USD 160 billion in revenues in
2012. With no clear legislation in India to govern this industry, we are
constantly getting lumped under the Prize Chits and Money Circulation Act. The Act bans all illegal money
circulation schemes. It does not regulate the direct selling or MLM industry in
any way,” he said.
“QNet operates
internationally to the highest possible standards. Strict codes of
conduct exist and policies and procedures are reinforced by training so that
each of our many thousand Independent Representatives [IRs] understands the
rules governing product sales and abide by the ethical codes of practice we
follow. Whenever we are informed that any of our regulations have been
broken we investigate these thoroughly. In appropriate cases, stern
action is taken.” He said.
Referring to the ongoing case against it, Merchant explains: “This situation appears to be some form of
orchestrated sustained attack on the company to undermine our reputation and
prevent us from competing fairly and openly in India. The manner in
which an alleged unmerited claim of fraud, which itself has not and cannot be
substantiated, has been used to arrest IRs and freeze assets and simply does not bear up to scrutiny.
We are confident that as true facts emerge authorities will also see this
clearly – as a calculated attack on QNet and take appropriate action against
those responsible for scheming this at the first place.”
“First of all, the complaint
involving one Gurupreet Singh Anand was officially closed on May 18, 2013. The
complainant Gurupreet’s wife Parmeet Kaur withdrew the complaint vide a letter
dated 18th May 2013 and submitted a letter to the Police Sub-Inspector of
Oshiwara Police Station (in Northwest Mumbai) giving an undertaking in writing
that the matter has been resolved.,”
Mr. Merchant pointed out: “Strangely,
Gurpreet Singh Anand filed the same complaint, three months after the case has
been closed and the complaint withdrawn, in the same police station. In an even
stranger development, this matter, a consumer complaint involving an alleged
transaction of Rs 30,000, was transferred to the Mumbai EOW!”
“There are so many
misrepresentations about this entire case. Gurupreet Singh claims his wife bought
a biodisc, where as our records show that she ordered an e-learning course, for
which no money ever was paid to the company. The cheque was stopped before it
could be realized and hence the transaction was nullified. All these
allegations of QNet having sold his wife a ‘cancer-curing’ product are
completely false.”
Mr Merchant wondered: “We fail to understand how Gurupreet
brandishes a Biodisc on TV that he claims was bought by his wife!”.
He described as yet another
gross misrepresentation, the reference to the case as a “Rs 425 crore scam”.
“QNet’s Indian franchisee,
Vihaan is clearly registered with the RoC, as a direct selling / MLM / network
marketing company that will promote its business in India through a network of
Independent Representatives (IRs). The company has been paying all its taxes
and complying with all the regulations of the government of India. In fact, all
commissions payable to the IRs for product sales are paid only after TDS. All
documentation has been provided to the investigators and the management of
Vihaan are fully cooperating with them in this investigation. So where does the
question of a ‘scam’ arise?
"It is unfortunate that
the dispute involving Rs 30,000 in a nullified deal has been painted as a Rs
425 crore scam and we sincerely hope that all concerned will appreciate this
factual position. Truth shall prevail," Mr Merchant added.
