Matters Surrounding the Arrest of the Director of Vihaan
Vihaan is located in India and it is owned by a Hong Kong-based direct selling company as its sub-franchisee, the parent company being Qnet. On the 25 January, 2019, India’s Supreme Court approved an interim order that favoured Vihaan direct selling (India) Pvt. Ltd. The Supreme Court order stated that there was ‘no coersive action’ against Vihaan direct selling (India) Pvt. Ltd. who are the petitioners of the case. The Supreme Court ordered the respondents of the case together with the state of Telangana to refrain from taking any further coersive steps in the FIRs that were filed against Vihaan direct selling (India) Pvt. Ltd.
The Cyberabad police arrested on 26 January, 2019 two independent representatives of Vihaan direct selling (India) Pvt. Ltd together with the director of the company namely, Dilip Raj, Chandar Kumar Chowdary and Atur Kumar. According to the arrests, it was alleged that the director of Vihaan direct selling (India) Pvt. Ltd together with his three independent representatives were guilty of the running of a Ponzi scheme that is able to operate through a multi-level marketing business of Qnet.
According to media reports, Dilip stated in the video that he wasn’t aware of any credible information about the financial deals of Qnet. Mr. Dilip went ahead to see that neither Vihaan direct selling (India) Pvt. Ltd nor himself as a director has any chance of making financial decisions of Qnet as the company is only a sub-franchisee partner of Qnet.
Qnet responded to the coersive action by the Cyberabad police as an unlawful arrest of its sub-franchisee partner’s director and that the action has no civil or criminal law conformance as it is in direct contempt of the order granted by the Hon. Supreme Court of India. Qnet went ahead to name the arrest by the Cyberabad police as police brutality stating that the director of Vihaan direct selling (India) Pvt. Ltd was forced into recording the video that circulated through the media reports through the many threats of police action.
Qnet put it out that transcripts of the arrest were requested from the Cyberabad police as it was against the orders of the Hon. Supreme Court of India and that they would use the transcript before the Hon. Court. Qnet said that they distributors get commissions out of product sales and that Ponzi scheme will totally be absurd in this case according to the claims by the respondent and Cyberabad police.
Qnet also wished for the public to know that Vihaan direct selling (India) Pvt. Ltd operates by the full financial guidelines of the Central Government’s Ministry Of Consumer Affairs as well as the state of Telengana.