QNET files appeal against Magistrate's order blocking websites

Hong Kong-based multi-level marketing company QNET, allegedly involved in Rs 425-crore financial fraud, today filed an appeal through its Indian franchise challenging a Magistrate's order which had blocked its websites, saying the order was "bad in law".
The appeal, filed by Vihaan Direct Selling (India), the Indian franchise of QNET, would come up for hearing in sessions court by May 31, court sources said.
On a plea by Economic Offences Wing (EOW) of city police, a Magistrate had on May 3 issued an order asking the Indian Computer Emergency Response Team (CERT) of Information and Technology Department of the Union Government to block the websites/servers of the company.

Accordingly, CERT blocked these websites which were allegedly indulging in online illegal money circulation schemes. Being aggrieved, QNET filed an appeal.
The appeal contended that the Magistrate had not heard the company before passing the impugned order. It also said that allegations against QNET had not been proved yet and so the impugned order was "illegal."
The EOW had alleged that the websites of QNET induced the people to jump into money circulation scheme and thus they got cheated by way of selling various products.

The EOW had arrested nine team leaders of QNET for allegedly duping investors by offering to sell products like magnetic disks, herbal products and holiday schemes through fraudulent practices. However, they were released on bail.

QNET has also been accused of using the banned binary pyramid business model for their multi-level marketing schemes to entice investors. The accused have been charged with cheating and forgery under relevant sections of the Prize, Chits and Money Circulation Schemes (Banning) Act 1978.
QNET contended that it used its websites -- www.Qnet.Net, www.Questnet.Net and www.Qnetindia.In -- as their "e-commerce" platform to sell various products.
The company said that without hearing them or giving them an opportunity to plead its case, the Magistrate passed the impugned order asking the authorities to block websites.
QNET argued that it was engaged in e-commerce and hence its websites is their blood line. The EOW want to block their website to stop the blood line and bring the company business to collapse before proving the allegations against them in the FIR registered in August 2013.