No more FIRs against Michael Ferreira in QNet case as SC rejects vacation plea filed by Maharashtra
After the Supreme Court dismissed the plea for vacation of stay on further proceedings in QNet case, billiards legend Michael Ferreira will not face any police custody into the 19 FIRs filed against the Hong Kong-based direct selling firm.
In Short
- On March 27, Supreme Court ordered a stay on all FIRs against QNet's business in India.
- Dismissal of the plea gives relief to many officials accused in cases against QNet.
- The initial relief was granted to QNet in Feb when Karnataka HC quashed an FIR against Naresh Subramaniam.
The Supreme Court has dismissed the plea for vacation of stay on further proceedings against QNet marketing fraud case that was filed by the Maharashtra government in March this year.
The order will ensure that billiards legend and Padmashree Michael Ferreira will not face any police custody into the 19 FIRs filed against QNet and Vihaan Direct Selling Ltd. across the country.
The Supreme Court dismissed the application filed by the state of Maharashtra seeking vacation of stay.
Earlier on March 27 this year, the Supreme Court had ordered a stay on all FIRs and proceedings against QNet's business in India.
The dismissal of the plea also gives relief to various officials and agents accused in cases against QNet who would have been taken into custody if the stay had been vacated by the apex court.
FERREIRA INITIALLY TAKEN INTO CUSTODY BY MUMBAI EOW
Ferreira was taken into custody initially by Mumbai EOW (Economic Offences Wing) when his bail plea got rejected by the Supreme Court. He was later taken into custody by Hyderabad, Delhi and Bangalore police.
The process of his ongoing arrests in 19 cases would have gone on if the stay was vacated on the order issued by Supreme Court.
Also, the order gives relief as there won't be any more FIRs concerning QNet. Had the court vacated the stay on proceedings, many more FIRs would have probably surfaced in various parts of the country where QNet was conducting business operations. The company's business operations won't suffer anymore. The order of rejection of the application for vacation of stay granted by the apex court earlier keeps the window of hope open for QNet and its subsidiaries in the country.
There had been several cases registered against QNet starting with the first filed by the Mumbai police's Economic Offences Wing (EOW) on a complaint filed by one Gurpreet Anand. Anand in his complaint alleged that QNet and its franchisee Vihaan Direct Markting run by billiards legend and Padmashree Michael Ferreira and his family members were duping people in the name of QNet. He had alleged that QNet agents were selling various products like Biodiscs, watches and pendants, which they claimed could cure cancer and other brain-related ailments. Anand's wife was approached by a QNet agent, who told her that the biodiscs they were selling for Rs 35,000 could change molecular structure of water, thus helping cure serious diseases like cancer and other brain-related ailments. He alleged that the agents presurised them to buy the product and when they refused, she started pressurising them. He also claimed that several offers of holiday packages and others were offered if one would bring in more clients for QNet. Based on the complaint, the Mumbai EOW registered an FIR and arrested several agents and also Ferreira when his anticipatory bail plea was rejected by the Supreme Court last year.
OTHER STATES THAT HAVE REGISTERED CASES AGAINST QNet
Various other states like Karnataka, Andhra Pradesh, Tamil Nadu and Delhi also registered cases against QNet and its franchisee company Vihaan Direct Selling Ltd. The cases registered against QNet officials and Vihaan officials were for cheating, fraud and under various sections of the IT Act. The Mumbai EOW had also sealed various bank accounts, which contained more than Rs 200 crores in them along with several properties belonging to the company. The FIR also contained names of QNet officials based in its headquarters in Malaysia and Hongkong. The Mumbai EOW suspected that the fraud committed by QNet and its subsidiary franchisees in India couldn't be worth more than Rs 1,000 crore.
The initial relief was granted to QNet when the Karnataka High Court quashed an FIR registered against QNet senior official Naresh Subramaniam in February this year. QNet and its sub-franchisee Vihaan Direct Selling Ltd were granted further relief when the Supreme Court granted no interference to the stay issued earlier in March.
A bench of Justice Nariman and Justice Kaul heard the matter briefly and observed that the stay granted on the earlier occasion needed no interference. The court thereafter dismissed the application filed by the state of Maharashtra seeking vacation of stay.
The Supreme 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 had not taken any steps in this regard.
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