SC rejects Maharashtra govt plea challenging stay on QNet probe

Final hearing in the case to take place in October

The Supreme Court has dismissed a plea of the government of Maharashtra seeking vacation of the stay granted by the apex court earlier for pursuing an investigation against the direct selling company QNet and its sub-franchisee Vihaan Direct Selling (India).

The two-judge bench comprising Justice Rohinton Fali Nariman and Justice Sanjay Kishan Kaul rejected the appeal in which the state government had sought the permission of the court to file additional documents, thereby, vacating the stay order related to the case.

"Upon hearing the counsel, the application for vacating stay is dismissed. Let the writ petition be set down for final hearing in the month of October 2017," the apex court said in its order dated July 10.

Earlier on March 27, 2017, the Supreme Court had ordered a stay on all first information reports (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 instil confidence in the industry with the introduction of the model direct selling guidelines.

Meanwhile, the apex court sought information on the status of appointment of the monitoring authority in various states. In response, the state of Maharashtra indicated that they have not taken any steps in this regard.

The direct selling industry has been gradually coming out of the woods due to a series of favourable measures undertaken by the government, including the issue of guidelines to be followed by companies in this sector. The hitherto unregulated industry will now find itself following norms set out by its governing ministry- the Ministry of Consumer Affairs.

The industry seems to be of significant importance in today's economic context considering that the World Federation of Direct Selling Associations' reported that the industry clocked $183 billion in retail sales globally, marking an increase of up 1.9 per cent over last year. This trend is likely to continue in the future, thereby, offering a huge opportunity to those looking at furthering their entrepreneurial dreams. It is also expected to address some pressing questions relating to employment generation for economies like India, where millions join the workforce on an annual basis.