SC issued a contempt order to Cyberabad Police for coercive measures against Qnet representatives. - QNET Company

The Supreme Court has issued a notice to the Cyberabad Police in Telangana on a contempt petition alleging breach of court directives prohibiting 'coercive measures' and arrests of independent representatives of e-commerce QNet company .

A bench of justices R F Nariman and Vineet Saran issued a notice and asked the state administration for a response.

The high court also waived the attendance of the alleged contemnors and filed the contempt petition among other outstanding matters for final disposition.

The contempt notice was issued in response to a petition filed by Vihaan Direct Selling Pvt Ltd, QNet's Indian franchisee.

According to the plea, notwithstanding the highest court's order, independent representatives of the company were arrested by the Cyberabad Police on suspicion of running a ponzi scheme.

The QNet Distributors Welfare Association petitioned the Telangana High Court, alleging that state police officials were not following the state's notification on the Direct Selling Guidelines, 2017, and were indiscriminately registering criminal cases against independent representatives of QNet's Indian sub-franchisee Vihaan Direct Selling (India) Pvt. Ltd.

The franchisee said that the state guidelines were developed in response to an advise made by the central government's Department of Consumer Affairs.

On February 6, the Telangana government, the Hyderabad Police Commissioner, and the Cyberabad Police Commissioner were instructed by the high court not to take any action against Qnet Company distributors.

It stated that QNet's operations in India, conducted through the franchisee company Vihaan Direct Selling, are fully compliant with the Union Ministry of Consumer Affairs' rules.

"The action done by the police has no civil and criminal law compliance and is in clear contravention of the decision granted by the Supreme Court of India that has directed all states, including the state of Telangana, not to take any coercive action against the company," the firm stated.


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