SC declines to vacate stay probe in all QNet cases

MUMBAI: The Supreme Court on Monday dismissed the Maharashtra government’s application against a stay on all 19 FIRs filed in the alleged Rs 1,000-crore QNet multilevel marketing case across the country.
“Application for vacating stay is dismissed. Let the writ petition be set down for final hearing in October,” said a bench of Justices R F Nariman and Sanjay Kishan Kaul. It means no investigation, trial or any other legal proceedings can take place till further orders by the apex court.
On March 27, the Supreme Court had ordered a stay on all FIRs and proceedings against QNet’s business in India and granted bail to former world billiards champion Micheal Ferreira and another official of the firm’s Indian franchise. Ferreira owns 80% shares and Malcolm Desai the remaining 20% in Vihaan Direct Selling (India), a subsidiary of the Hong Kong-based QNet.
Ferreira and Desai were arrested last year for allegedly running ponzi schemes and violating laws. They had surrendered before a trial court in Mumbai after the SC had in September 2016 refused to grant them anticipatory bail.
A statement issued by the direct selling company on Thursday said, “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 seeking vacation of stay...The 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.”
The company statement added, “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 instil confidence in the industry with the introduction of the model direct selling guidelines.”