Is QNET Banned in India?

Is QNET Banned in India?

May 26, 2022, 11:27:07 AM News

Direct selling is one of India’s fastest-growing industries. However, because of its rise in popularity, direct selling companies have been criticized in the media and accused of being a scam. This has resulted in many asking: Is QNET banned in India? The answer is no; QNET is not banned in India because direct selling is legal in that country. 

It embraces all that the nation has to offer and gives back to communities where it operates. According to the company, 70% of its products in India are made in India. This includes Mugnier timepieces, which are assembled in Maharashtra. “By assembling the Mugnier watches in India under quality control measures comparable to Swiss ateliers, we not only offer affordable luxury to our customers, we are also supporting the government’s Make in India initiative and supporting local industry,” said Rishi Chandiok, director of South Asia for QNET. “We are targeting the emerging demographic of watch lovers in India who are priced out of the high-end luxury watch market but have an appreciation for watches with a story. We estimate our overall watch product portfolio in India, which also includes the Chairos brand of Indian watches, will constitute 25% of our entire sales volume by 2023.”

According to senior company official N Churamani, “We are focusing more on the Ayurvedic products to tap into the ongoing trend in India. We are sourcing our herbal tea products from Coimbatore, soluble fiber products from Himachal Pradesh, and calcium products from SMEs in Bengaluru.”

With a little bit of research into the workings of direct sales businesses like QNET, anyone can understand that it presents a great opportunity for entrepreneurial advancement. The company and its sub-franchisee in India, Vihaan Direct Selling (India) Pvt. Ltd., are registered under the Companies Act, 1956. And in 2016, India’s Ministry of Consumer Affairs, Goods and Public Distribution established the Direct Selling Guidelines in order to curb fraudulent business practices and protect consumers’ legitimate rights and interests. The legislation is intended to add additional support to the legal operations of direct selling. 

Founded in 1998, QNET has grown into a global leader by providing world-class products and empowering entrepreneurs. The industry has a compound annual growth rate (CAGR) of 4.8% and 12.1% year-over-year growth. And by 2025, the direct selling industry is predicted to reach a value of 64,500 crore, and that sector is expected to generate self-employment for more than 18 million people. 

Favorable Judgments Illustrate That It Operates Legally in India 

The High Court of Karnataka overruled all criminal proceedings against the direct selling company in a 2017 cybercrime case. According to the ruling, “When the activities of these companies do not constitute either money circulation scheme or prize chit, the criminal offenses do not even remotely apply to such activities and consequently charging the accused of such offenses is unsustainable.”

The company received a positive outcome in another legal matter in 2017, when the Supreme Court of India ordered a stay on all proceedings against Vihaan Direct Selling Pvt. Ltd and its shareholders. That order halted all FIRs (first information reports) against the company throughout India. Then in 2019, courts ruled that Vihaan Direct Selling fully complied with the guidelines issued by the Union Ministry of Consumer Affairs and ordered the Cyberabad police commissioner, the Telangana government, and the Hyderabad police commissioner to stop taking action against distributors.

QNET: At the Intersection of Direct Selling and E-Commerce in India

According to QNET CEO Malou Caluza, “One of the smartest things our founders did was to merge the concept of direct selling with the then very new concept of e-commerce. This disrupted traditional direct selling, which was all about face-to-face interactions and establishing retail shops. So we experienced some challenges, but we had a lot of excitement, passion, and belief in what we were doing, and the experiment paid off.”

Caluza explains that the company tapped into the rise in micro-entrepreneurship. “The gig economy that everyone is talking about today is popularized by tech companies, but direct selling was the original tech economy business,” she says. “With passion and discipline, anything is possible. Once you have set your mind to a dream, pursue it with dedication and be consistent about it. The results will follow. These are unprecedented times we live in. The pandemic will leave an economic wasteland that will require years to heal — and traditional modes of income will be difficult to come by. Exploring direct selling is a viable and respectable profession, and if you choose the right company, you will be sufficiently supported and guided through your journey to becoming successful.” 

Integrity in Entrepreneurship

QNET is fully compliant with the government’s Direct Selling Guidelines 2016. It ensures that all distributors pay taxes in accordance with local laws and comply with the statutory requirements of India. Since its inception, QNET has been actively educating distributors about the benefits of direct selling and providing them the training and platform necessary to achieve their goals as successful business owners. 

Even though it gets mistaken for a get-rich-quick scam or pyramid scheme, QNET is 100% legal and transparent in India. According to the company, “QNET doesn’t ask individuals to invest any money. It is important to note that it is not an investment scheme. There is no joining fee to register as a distributor in India. If the distributor chooses to expand, it would require time and hard work to grow the business. QNET further encourages individuals to fully understand the opportunity and assess their situation before registering for the opportunity.”

Published by Samantha Brown

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