Global direct selling major QNet says it has "big plans" for India but needs clear-cut norms that differentiate genuine direct-sellers from those involved in illicit investment schemes.
Malaysia-based QNet's Global CEO Trevor Kuna emphasised that it sells products and services and not into "investment business" and said it has been paying all its taxes and all their payments have been made after deduction of taxes and that too through non-cash modes with full documentation and transparency.
The group and its Indian franchisee has been facing several legal cases in India and has been accused of indulging in fraudulent business activities -- the charges which it has been refuting consistently.
"We do have big plans for India, but like many other companies we are waiting and watching how the implementation of the guidelines unfolds on the ground," Kuna told PTI in an email interview from Malaysia.
Amid persisting concerns over direct selling activities, the government last year came out with draft guidelines for such business with the aim to protect the consumers' interest.
On various occasions, certain direct selling companies, including QNet, have come under the scanner of government agencies for alleged malpractices.
"The draft guidelines are a good first step, but we have a long way to go before we can compare with these international laws.
"The need of the hour is to formulate clear-cut laws to govern the direct selling industry in India which has been generating large scale self-employment," Kuna said.
Further, he said there is still no protection for genuine direct selling companies from the application of the Prize Chits and Money Circulation (banning) Act or other investment- related acts.
It has been alleged that QNet had perpetrated fraudulent activities and a case is going in the court.
"Now that the chargesheet has been filed in the case in Mumbai and the matter will formally be heard in court, we will be able to prove beyond doubt the genuine character of our business model," Kuna said.
Betting big on Indian markets, he said, "QNet has always recognised the potential of this market. Despite multiple hurdles over the years due to lack of legislation and awareness we have stood by our commitment to all stakeholders in the Indian market.
"I believe that the true potential for direct selling in India is yet to be realised. India is one of our top 5 markets and we are here for the long term, and seek a sustainable future.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
