MLM / Chain Money
A sustained campaign by victims gets QNet's name deleted from a govt event
When it comes to seeking sponsorship and finding, the government apparently does not bother about the colour or quality of money. QNet, a controversial multi-level marketing (MLM), was billed as one of the key partners of BIMSTEC SAARC Women Economic Forum, held in New Delhi on 13 January 2016. Organised by the Associated Chambers of Commerce and Industry of India (Assocham), the high profile forum was attended by Mridula Sinha, Governor of Goa, and Anupriya Patel, Minister of State in the Ministry of Health and Family Welfare. 
 
What shocked people is that QNet was one of the main sponsors and its logo was plastered across banners and posters during the pre-event publicity campaign. Angry victims of QNet then launched a sustained campaign and flooded social media to draw the government's attention to the controversial company. Although the government and Assocham have not officially acknowledged the pleas by QNet victims, it was seen that QNet had vanished from the logos of the actual event. 
 
QNet has been severely indicated by various courts, the Serious Frauds Investigation office (SFIO) and has several of its officials and associates in jail, including Padma Bhushan awardee and former Worlds Billiards Champion Michael Ferreira, who remains in custody.
 
The victims raised an alarm when Ajay Sharma, director of Assocham posted a photo on Twitter about the event with QNet as one of the sponsors. Mark Ferreira, one of the accused in the multi-crore QNet scam and son of Michael Ferreira, who is in police custody in the same fraud, also posted a photo of this event on Facebook. In his post, Mark says, "QNet is proud co-sponsor of the Women's Economic Forum on Jan 13th 2017 to be held in Delhi". Mark is part of the charge sheet filed by the Economic Offences Wing (EOW) in the Maharashtra Protection of Interest of Depositors (MPID) Court in Mumbai in December 2016 against QNet and its franchisee Vihaan Direct selling (India) Pvt Ltd. The charge sheet states that Mark is not traceable and Police are still looking for him.
 
 
Led by Whistle blower and original complainant Gurupreet Singh Anand, the QNet victims pointed out to Assocham officials the many cases, investigation reports and court orders against QNet. The victims also filed an online complaint on the Ministry of External Affairs (as the concerned Ministry for this event) besides posing several messages on Assocham's Facebook page. According to the victims, Assocham did not indicate whether or not it would remove QNet's name as sponsor.  
 
Hemal Ashar, a journalist from Mid-Day newspaper too faced similar issue with Mr Sharma. She contacted Mr Sharma for an article on the issue. However, Mr Sharma did not even let her complete her query on phone about QNet sponsorship, she says. “I have been getting calls about the company we are associating with. Why should I discuss anything with you? There is nothing to be discussed,” he said before disconnecting, Ms Ashar wrote in her article
 
We further learn that Vihaan, the exclusive franchisee of QNet, the MLM company and Assocham member. Consequently, Assocham has also been lobbying the government to allow companies like QNet to operate as 'genuine' direct selling companies. In 2014 Assocham wrote letters to the Finance Minister, Minister of Consumer Affairs, Minister for Corporate Affairs and Home Minister pointing to the "immediate need for the government to act for the interest of the citizen-consumer, distributors and genuine direct selling and MLM companies in India". (Read: Legislation Key for Survival of Direct Selling/Multi-Level Marketing Industry in India)
 
However, the industry body appears to have overlooked reports from investigation agencies and several court cases filed against QNet. 
 
The Serious Frauds Investigation Office (SFIO) in its detailed 'secret' report in 2012 on GoldQuest International Pvt Ltd and Quest Enterprises India Pvt Ltd, previous avatar of QNet, had called MLM schemes run by overseas operators as "a potential threat to national security". 
 
Last year the Bombay High Court, while rejecting anticipatory bail application of five prime accused, including Michael Ferreira, former world champion of billiards, has called the whole business of QNet as "prima facie illegal business".
 
The HC order mentioned "The motto of the company 'sell more, earn more' appears very attractive and innocuous. However, this motto is fully camouflaged. The company stands on a basic statement that people can be fooled. Thus, the true motto is 'sell more earn more' by fooling people. In fact it is a chain where a person is fooled and then he is trained to fool others to earn money. For that purpose, workshops are conducted where study and business material is provided with a jugglery of words, promises and dreams. Thus, the deceit and fraud is camouflaged under the name of e-marketing and business." (http://www.moneylife.in/article/qnet-ldquoit-is-a-chain-where-a-person-is-fooled-and-then-he-is-trained-to-fool-others-to-earn-moneyrdquo-says-bombay-hc-order/46857.html)
 
Ferreira, along with Srinivas Rao Vanka and Magaral Veervalli Balaji, both directors of Vihaan Direct selling (India) Pvt Ltd, Malcolm Nozer Desai, who is a 20% stakeholder in Vihaan were in the custody of Thane EOW as per order from the Special MPID Court, Thane.
 

 

User

COMMENTS

gurupreet

4 days ago

💥📣 HYDERABAD QNETSCAM victims meeting update 📣💥
Dont REGRET later if you miss this meeting, for which we are taking special efforts.

Please gather tomorrow sharp 11AM at Sudarshan 35MM, RTC Cross Road, CHIKKADPALLI, HYDERABAD..
For answers to your questions

Ever since you lost your hard earned money in QNET SCAM, you all have multiple questions and facing multiple issues like:

1. Where and whom to approach for recovering your hard earned money?

2. How to help fight and stop this QNET SCAM?

3. How to teach your CHEATER UPLINES a lesson?

4. Issues regarding the “so called” “REFUND POLICY”.

5. Are you eligible for “Compensations”?

6. Issues regarding action by police authorities.

7. What is the status of the court cases etc

These are an example of just a few issues and concerns you are facing, but there is GOOD NEWS for you all. We have been working overtime to try and bring an end to these woes and issues faced by Victims of Financial Frauds like this QNETSCAM.

So guys and girls coming Sunday i.e 23rd of July 2017 is the BIG DAY finally , Please do join us at 11AM at the above mentioned address and the location is also attached here with.

Please do come and also inform other victims of the QNETSCAM in Hyderabad, Telangana and Andra Pradesh.

For details WhatsApp me on 7498063701 or call on +918978700018 and speak to Mr. Raghav.

Please pass this important message on all WhatsApp groups, Facebook and Twitter etc so all victims of QNETSCAM in Hyderabad and around can attend.

Those who are attending please confirm in advance as we have limited capacity only🙏

Jai Hind

REPLY

brave mazumder

In Reply to gurupreet 4 days ago

Jai Hind Mr. Freedom fighter...

gurupreet

4 weeks ago

#QNETSCAM & SUPREME COURT MATTER UPDATE - Please read till the end.

Dear Members,

Jai Hind to all. As you are aware I have had fought the QNET SCAM since last 4 years and devoted all these years full time towards taking effort to expose the QNET SCAM because of which millions of innocent people in India are loosing thier hard earned money and due to my efforts the #QNETSCAM had almost come to a stand still.

This fight has had taken a HUGE effort and affected my personal and professional life beyond what can be explained here, though all cases in which I appeared had verdicts coming in favor of the victims of #QNETSCAM

In Bombay High Court and the Supreme Court I have faced the best and most expensive lawyers in India like Mahesh Jhetmalani , Kapil Sibbal, Salman Kurshid , Dushant Dave etc but they could not protect the accused involved in the #QNETSCAM till recently when...

These accused cheated and played FRAUD upon the Supreme Court and obtained an stay order on all proceedings against QNET all over India. It is very very Important for all of us to come together and unite so that this fraud can be exposed and correct facts are brought before the Supreme Court.

To carry forward this fight further I need to move to Delhi and need support from you all without which this fight will come to an end. I request Donations from you all for fighting this #QNETSCAM which is destroying lifes, families and careers and thousands of crores are being laundered out of our country India.

I request donations and the same can be send thru Bank transfer or deposits in my bank account number as below:

Account number: 32280724593

BANK:
state bank of India, Lokhandwala branch


IFSC: SBIN0013204


Name as in bank records: Gurupreet Singh Anand

You can also donate via Paytm on 7498063701. Any donations big or small are welcome.

Other help in form of a place to stay in Delhi and if anyone has an extra activa or similar gear less two wheeler which I can use is also welcome. If you think you can help in any other ways please whatsapp me on 7498063701

Regards

Gurupreet Anand



Please pass this message to all groups, Facebook, Twitter, activists, members and victims of QNETSCAM, please join the fight in exposing the biggest ponzi scheme in India and stop the money being laundered out of our country



Vande Matram

chaitanyamallipudi

4 months ago

Qnet is a great company. Don't just spread negativity. People r fine with celebrity taking crores for promoting a product but real common man promoting a product is bad for u. Funny people

REPLY

gurupreet

In Reply to chaitanyamallipudi 4 months ago

whats "PRODUCTS" are u talking about?

jitu moni

4 months ago

http://www.mid-day.com/articles/qnet-case-scam-mumbai-news-mumbai-airport-arrest-eow-aditi-mitra/18084164
The Economic Offences Wing (EOW) of the city police arrested a woman in her early 30s on Thursday for her active involvement in the multi-crore QNet scam. The total number of arrested accused has now reached 47, which includes Billiards champion and Padma Bhushan recipient Michael Ferreira.
In the Rs 1,000-crore scam of Hong Kong-based company QNet, nearly 5 lakh investors across the country were duped. QNet has been accused of using the banned binary pyramid business model for its multi-level marketing schemes to lure investors.

QNet posed as a marketing firm selling bio-discs, watches, herbal products, holiday packages, etc. It also claimed that by using the bio-disc, one could cure cancer and brain diseases, the police said.
Too much baggage
Accused Aditi Mitra was intercepted at the Chhatrapati Shivaji International Airport, and subsequently, arrested based on the lookout circular that had been issued against her.

Assistant commissioner of police Arun Jadhav confirmed her arrest said she was sent to police custody till March 23.
Mitra was allegedly trying to flee to Dubai for good. She was carrying eight big bags and two handbags. Of the eight, two contained her belongings; she refused to say what was in the other six, sources said.

Mitra, an independent representative associated with QNet, had been getting hefty commissions in return. She has multiple bank accounts, with one alone having Rs 25 lakh, as EOW officials found, adding that all her bank accounts have been frozen.

Active player
Investigators found that on the instructions of the other accused, Mitra was actively involved in the scam. She had brainwashed victims in order to induce them to invest in the scheme,” said special public prosecutor Pradip Gharat.

A victim, Sewri resident Arpita Majarekar, said, “She would conduct welcome sessions in malls and trap people with her sweet talk.

She had promised me and many others that if we invested in the scheme, we would get double the amount in three years.” Majarekar, who works in a private firm in Andheri, had invested nearly Rs 12.5 lakh in the scheme through Mitra.

She has been booked under relevant sections of the Maharashtra Protection of Interest of Depositors in Financial Establishments Act, Prize, Chits and Money Circulation Schemes (Banning) Act, and the Indian Penal Code.

gurupreet

6 months ago

QNET VICTIMS please beware of this shady character one Mr. Rafiq whose posing as an "High Court Advocate & RTI Activist" at various online web sites.

This guy is a sweet talker and will promise you refund from QNET if you appoint him as an advocate, he is doing nothing but cheating your further...here is his modus operandi...

He also claims to be behind several actions that have been taken place by mumbai police and FFVA but the FACT remains that he has nothing to do with any of these actions being taken all over India.

He will convince victims to appoint him as an ADVOCATE and thereafter tell victims to deposit Rs 50,000 in various bank accounts to show that he has been apponited.

He will promise that he will return back the money after showing that to QNET office but the FACT remains that after the money is transferred he will stop recieving your calls and vanish .

We have recieved multiple complaints against this FRAUD, please BEWARE you all have already been cheated dont get cheated again.

For your REFUNDS only follow the correct and LEGAL way to get your refunds along with compensation, for more info do drop us a email at [email protected]

FFVA i.e Financial Frauds Victims Association has been formed to help and provide legal aid to victims of QNET SCAM.

http://www.mid-day.com/articles/qnet-forms-financial-fraud-victims-forum-scam-gurupreet-singh-anand/17659179

Please stay away from crooks and fight for your legal rights in correct and proper way.

Regards
Gurupreet

Rehan Hayder Jafri

6 months ago

Big time cheaters actually

REPLY

jitu moni

In Reply to Rehan Hayder Jafri 4 months ago

File EOW complaint against upline. Go to Qnet Scam fb page for procedure details

Rajveer

6 months ago

I am with QNET from past one and a half year.. Learning and earning are just out of the box. i happy very very very happy that i started with QNET. Network Marketing will be the biggest industry of all the times. Whosoever is having any questions on this Industry do research do not just do search and about the products QNET products are the best. If anyone is having any doubt can come up for open discussion our products are best and value for money products. #paidmedia #paidmoneylife

REPLY

jitu moni

In Reply to Rajveer 4 months ago

Have you sold anything to unknown retail customers or you call up friends for showing plan to financial freedom and ask for investment without telling its an MLM QNET SCAM

chaitanyamallipudi

In Reply to jitu moni 4 months ago

Get a life.

Rehan Hayder Jafri

In Reply to Rajveer 6 months ago

Rajveer
My journey with qnet was almost 4 yrs. After destroyed my 4 yrs I realise that they r the biggest cheaters of all time.

Rajveer

In Reply to Rehan Hayder Jafri 6 months ago

who cheated you ? Company is running successfully paying commissions on time with not even a single default. Increase product line massively. Introspect bro what you have done in past 4 years before blaming anyone and shouting on social media. take time and speak to yourself

gurupreet

In Reply to Rajveer 6 months ago

Robbing Paul to pay Peter is not business

jitu moni

In Reply to Rajveer 4 months ago

47 Accused arrested . Bank account reveals commission for enrolling members not selling products in retail. You want to join the group

brave mazumder

In Reply to Rajveer 6 months ago

Jio Mr. Rajbir

Jitender Singh

6 months ago

Qnet for a fact is scam, and these people are so brainwashed tgat they don't even understand it's a scam. They are going to tell u k aaj tak zindagi mai kia hi kya h n once you start believing that you are not capable enough, you start trusting qnet. Theres no point to argue with them about the business because it's there moto "fuck logic" abd they are going to tell you dimag lagaya to kama nahi paoge. Jo log logic sunna hi nahi chahte unhe samjaoge kya and all those who says its legit to phle network marketing ka matlab hi sikh lo, even in that you have sell a product but qnet mai aisa kuch hai hi nahi wo bas dikhane k ly hai online. These guys nothing to sell just know to scam people in the name of trust. For example : i have a cousin jo har dusre month jail mai hota hai for x y z reason. We don't have relations with his family that much but jab koi uske jaisa insan jail s bahar aa jata hai kuch paise khilane p cz india mai paisa chalta hai. So crores k business ko white dikhana kya bdi bat hai. We really need some strongs law against these companies and a government to take actions

REPLY

Rehan Hayder Jafri

In Reply to Jitender Singh 6 months ago

Actually qnet is not a scam, but followers of qnet make it scam, practice of doing mlm is very dirty.

Rajveer

In Reply to Rehan Hayder Jafri 6 months ago

Rehan i think you are very confused. take time and think bro. you're own comments are controversial. one time you say QNET is scam and other time you say no..lol

Yuvaraj Pb

In Reply to Jitender Singh 6 months ago

Qnet is not a scam, I am a proud IR and it is the most caring, ethical and legal business entity in the world. We get the product for paying money and with that company is providing free of cost business opportunity... My entire family is there in this and if the company helps people to make money by providing awesome training and guidance then I am happy to be part of it for entire life... Please don't try to uproot Qnet it is already deep-rooted and stands strong....
Does your company asks you how to make dreams come true, ha ha no. Our company QNET will help us to realize our dreams. Don't talk like fools. Be a man and accept challenges in life to become millionaire like shri Ambaniji, shri narayanmurthy, Birlas etc.,

jitu moni

In Reply to Yuvaraj Pb 4 months ago

Go make a sale without luring people of financial freedom and tell them there is a 30 day refund policy if you dare in this MLM

gurupreet

In Reply to Yuvaraj Pb 6 months ago

Ambani and others went all the way to Malaysia to learn that stupidity of F2 from cheap pathman?

If your entire family is involved in this illegal business you better beware then... Police will come knocking your doors soon

Rehan Hayder Jafri

In Reply to Yuvaraj Pb 6 months ago

Chootiya bnana bund karo yuvraj.
Ethically they r wrong. Dream dream bta kar tumko bewaqoof bnate rehte hayn.
Itni hi acchi hay to first call me kyon nahi btate ki qnet hay.
Phat ti kyon hay. Kyon ke tum log Chor ho

Jitender Singh

6 months ago

Qnet for a fact is scam, and these people are so brainwashed tgat they don't even understand it's a scam. They are going to tell u k aaj tak zindagi mai kia hi kya h n once you start believing that you are not capable enough, you start trusting qnet. Theres no point to argue with them about the business because it's there moto "fuck logic" abd they are going to tell you dimag lagaya to kama nahi paoge. Jo log logic sunna hi nahi chahte unhe samjaoge kya and all those who says its legit to phle network marketing ka matlab hi sikh lo, even in that you have sell a product but qnet mai aisa kuch hai hi nahi wo bas dikhane k ly hai online. These guys nothing to sell just know to scam people in the name of trust. For example : i have a cousin jo har dusre month jail mai hota hai for x y z reason. We don't have relations with his family that much but jab koi uske jaisa insan jail s bahar aa jata hai kuch paise khilane p cz india mai paisa chalta hai. So crores k business ko white dikhana kya bdi bat hai. We really need some strongs law against these companies and a government to take actions

REPLY

brave mazumder

In Reply to Jitender Singh 6 months ago

Bro, u go and ask govt to do all the actions you have in ur mind.

Karte rahi tum log aisa..

All the best

Jitender Singh

In Reply to brave mazumder 6 months ago

Bro, i have my best feiend included in this shit. I grew up with him har wqt sath and i consider him as my real brother. N jo tum log hot sign up khte ho na, where u don't tell the person what's going on, whi hua hai mra. Uska pura aacha khasa brain wash kar rakha hai... Agar uska naam hta jae na. To jis 14 15 IR's ko mai janta hu. Unhe rulane mai 1 din nahi lagega. 1 din, literally khoon k aasu rula dunga without gov sirf ek naam k wjha s chup mai. That is my own brother from another mother

brave mazumder

In Reply to Jitender Singh 6 months ago

If u really care and trust ur frnd then u should work with him, else u have no right to say anything abt the organization without knowing the actual truth. There is nothing illegal in direct selling..all problems are in ur mind rather than in the company.

Jitender Singh

6 months ago

Qnet for a fact is scam, and these people are so brainwashed tgat they don't even understand it's a scam. They are going to tell u k aaj tak zindagi mai kia hi kya h n once you start believing that you are not capable enough, you start trusting qnet. Theres no point to argue with them about the business because it's there moto "fuck logic" abd they are going to tell you dimag lagaya to kama nahi paoge. Jo log logic sunna hi nahi chahte unhe samjaoge kya and all those who says its legit to phle network marketing ka matlab hi sikh lo, even in that you have sell a product but qnet mai aisa kuch hai hi nahi wo bas dikhane k ly hai online. These guys nothing to sell just know to scam people in the name of trust. For example : i have a cousin jo har dusre month jail mai hota hai for x y z reason. We don't have relations with his family that much but jab koi uske jaisa insan jail s bahar aa jata hai kuch paise khilane p cz india mai paisa chalta hai. So crores k business ko white dikhana kya bdi bat hai. We really need some strongs law against these companies and a government to take actions

REPLY

satish H.C

In Reply to Jitender Singh 6 months ago

I am qnet IR and I don't see any issue in it, it is as good as any other industry and you pay for the product and get paid for your effort in building the business and I had never see anyone who are forcing anybody to join the business and we require only serious networkers and that's all. If you don't know the facts, just pls shut up and mind your own business and don't try to become nuisance ya pain in the a##.

gurupreet

In Reply to satish H.C 6 months ago

If you don't force or want only serious networkers why you do hot zones then

Rehan Hayder Jafri

In Reply to satish H.C 6 months ago

Chor hay qnet,bahut badi wali
Vcon me kitna paisa leti hay , 30000 minimum, kyon ,kis liye,poochhna dato se ya chief se.

gurupreet

In Reply to Rehan Hayder Jafri 6 months ago

V-con=We-Con after cheating you once they cheat you again on the name of business conference

Abhijit Srivastava

6 months ago

I am a proud IR of Qnet, I am in this business and it's totally different from what media is talking about it across the nation. The question which should be raised is why government is not making any regulatory body for it. #PaidMedia

REPLY

gurupreet

In Reply to Abhijit Srivastava 6 months ago

How does one regulate a illegal money circulation, money laundering scheme... By putting the owners and director's into jail

That's what courts have done

Sriharsha Ramesh

In Reply to gurupreet 5 months ago

Time will answer you 😊

brave mazumder

In Reply to Abhijit Srivastava 6 months ago

Absolutely !!

All the IRs should stand together and raise a voice to save the integrity of the company against all the odds who are talking bullshit.

Rajesh Dube

6 months ago

This is absolutely wrong attitude of Moneylife and showing some sort of personal grudges towards the industry or Company Qnet. I have been into the business for last 4+ yrs and have never felt an inch of whatever Indian media is talking about today. Also would like the same media to get an answer why is India not taking an immediate action to regularize and bring the company and it's working IRs on track with the right terms ... why taking so much time .

REPLY

Rehan Hayder Jafri

In Reply to Rajesh Dube 6 months ago

Aate kyon nahi India tumhare directors, V partners..
Kyon ki Chor hayn. Chootiya bna kar paisa kmate hay. Vcon ka ticket kyon itna costly hay. Iska koi jawaab nahi hay, na hoga,

brave mazumder

In Reply to Rajesh Dube 6 months ago

Media is sold and Just trying to stop qnet From working here in India

Jitender Singh

In Reply to brave mazumder 6 months ago

haan bhai n jo log scam bolte hai wo bh pagal hai, i am part of qnet and seen what you do and it is for a fact is scam. you guys don't have guts to stand alone and succeed in your life to jab tumhe 1st meeting mai btaya gaya ki aaj tak life mai ukhada hi kya hai to man lia and dreams dreams keh k ho liye tab bh.. don't even let anyone tell you that you are good for nothing and that is what every qnet guy preach about.... and believe me these guys are the biggest loosers because they actualy let others tell them that they are loosers.....

brave mazumder

6 months ago

I simply think that I am a proud representative of Qnet as it is doing legal business in India following the norms of direct selling. Stop spreading negative news abt the company as it is a rock solid company. Also stop following the idiot guy Mr Anand who is just doing all the stuff to get attention and become popular.

Start your life with qnet and see the change in ur life guys

REPLY

jitu moni

In Reply to brave mazumder 4 months ago

Direct sellers sell products to anybody with name of company, and dont keep earning commissions when their tenth level downline recruits eleventh level downline. That becomes money circulation, product based pyramid

chaitanyamallipudi

In Reply to jitu moni 4 months ago

Wen company pays a part of profit to the brand ambassadors like sharukh khan etc.. Is it money circulation?. Then all celebrities should be arrested. Cant u think properly?

gurupreet

In Reply to brave mazumder 6 months ago

If I am an idiot doing for publicity... What about judges of high Court and Supreme Court who have put your owners and director's in jail

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment- The Hindu

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment
http://www.thehindu.com/business/Industry/sc-order-gives-new-life-to-direct-selling-segment/article17725369.ece

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment
http://www.thehindu.com/business/Industry/sc-order-gives-new-life-to-direct-selling-segment/article17725369.ece

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment
http://www.thehindu.com/business/Industry/sc-order-gives-new-life-to-direct-selling-segment/article17725369.ece

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment
http://www.thehindu.com/business/Industry/sc-order-gives-new-life-to-direct-selling-segment/article17725369.ece

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment- The Hindu

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment- The Hindu

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment- The Hindu

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment
http://www.thehindu.com/business/Industry/sc-order-gives-new-life-to-direct-selling-segment/article17725369.ece

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment
http://www.thehindu.com/business/Industry/sc-order-gives-new-life-to-direct-selling-segment/article17725369.ece

bhupesh .shukla

In Reply to gurupreet 3 months ago

Kindly read the recent judgement from Supreme court. SC order gives new life to direct selling segment
http://www.thehindu.com/business/Industry/sc-order-gives-new-life-to-direct-selling-segment/article17725369.ece

Rehan Hayder Jafri

In Reply to brave mazumder 6 months ago

If it is really legal as u said, than why ur directors and V partners are not coming in India since very long time, no bcoz they r cheaters

Demonetisation to cause sustained downturn, hit recovery prospects: CMIE
Expecting the demonetisation to cause sustained downturn, the Centre for Monitoring Indian Economy Pvt Ltd (CMIE) says it sees India's real gross domestic product (GDP) slipping to 6% in FY2016-17. The Indian economy is unlikely to achieve a growth of 7% anytime during the coming five years, it said in a note.
 
Says CMIE, "Before the demonetisation shock, the Indian economy was expected to gradually accelerate its real GDP growth rate from 7.5% to over 8% per annum. The immediate impact of demonetisation was a sharp reduction in private final consumption expenditure, a corresponding fall in retail prices of perishable commodities, a substantive dislocation of labour and corresponding losses in wages and a breakdown of supply chains in many parts. Compared to our earlier forecast, this year’s growth estimate has been scaled down 164 basis points following demonetisation."
 
"However," it says, "we expect the long-term damage to be greater than the damage caused to growth during 2016-17. On an average, growth during the coming five years up to 2020-21 has been scaled down by 187 basis points compared to our earlier forecast for the same period. We now expect this growth trajectory to shift down to about 6% per annum for the next five years. The economy is unlikely to achieve a growth of 7% any time during the coming five years."
 
Demonetisation would damage recovery prospects, CMIE says, adding, "Demonetisation has further damaged the prevailing bleak investment prospects. Consumer demand has fallen and liquidity is constrained. Entrepreneurs also face a business environment where the government talks of raids and punitive actions. While these intentions could be good, the effect could be increased litigation and depressed demand."
 
Pointing out towards the huge cash deposits in banks, CMIE says there should be no dearth of funds for investment in such a scenario, but credit growth is very poor. "As more new currency notes are introduced, some of the deposits with banks will reduce as people who cannot get cash today will start withdrawing it successfully when the cash becomes available. Thus, banks will be less flush with funds towards the end of 2017. It is likely that their non-performing assets (NPAs) will rise because of demonetisation. The government has already announced a relaxation of repayment of loans. The flood of cash notwithstanding, banks’ balance sheets are stressed with large NPAs and their ability to lend aggressively still remains constrained. In fact, the banks’ financial position is somewhat messed because of demonetisation."
 
"...an investment environment that was already plagued with poor demand and low capacity utilisation is now infested with fears of a further depression in demand, prospects of inspections and raids and a somewhat messed up banking system. Investors are likely to wait for demand to be restored, supply chains to be repaired, the spectre of raids to go away and banks to return to normalcy before they display any enthusiasm regarding the creation of new capacities," CMIE added.
 
According to the economic think-tank, private final consumption expenditure declined because the available cash on hand to transact retail purchases reduced sharply following the removal of 86% of the currency in circulation. The cash to GDP ratio is high at 12% and reportedly over 90% of the transactions in India are cash-based. As a result, the sudden and sharp reduction in currency had an immediate and significant impact on consumption expenditure.
 
The fall in retail inflation to 3.6% in November and the fall in sales reported by several fast-moving consumer goods (FMCG) companies are early indications of the fall in consumption expenditure.
 
Says CMIE, "Labour has been dislocated from productive work as they were forced to line up in front of banks to convert their old currency notes into new ones. Given that banks did not have sufficient new currency notes, this led to substantial dislocation of labour and a corresponding loss of wages. The fall in consumer demand combined with fall in availability of cash also led to a fall in the demand for labour. This sets in a vicious cycle of low demand for labour and low consumption expenditure."
 
"We expect this low demand to persist till three conditions are met. First, liquidity is fully restored, secondly, confidence in liquidity is fully restored and thirdly, consumers are yanked out of their equilibrium at lower levels of consumption of non-essential commodities," it added.
 
However, it sees none of these conditions to be fulfilled in a hurry. It says, "Estimates of restoration of full liquidity range from mid-January to September 2017. The Rs2,000 currency notes do not provide liquidity like the decommissioned currencies provided and so we believe that liquidity is likely to be restored only towards the early second half of 2017. It would take a little longer to gain confidence that the liquidity is for real. The government or Reserve Bank of India (RBI) have not taken steps to scotch rumours of demonetisation of theRs2,000 currency notes. As a result, the effective liquidity in the markets is much lower than is measured by the issuance of new currency notes. The Rs2,000 note is less liquid than it would be without the rumours regarding its lifespan."
 
Further, it says a flight from currency in hand to other asset forms because of a fear of potential loss of liquidity through further demonetisation and a fear of raids or enquiries could structurally reduce the propensity to spend on consumption goods.
 
"As a result, we expect the hit on consumer spending to last much longer than just a few quarters. Private final consumption expenditure grew 7.5% in 2015-16. This marked a recovery from the much lower growth rates of around 6% in the preceding four years. We had expected private final consumption expenditure (PFCE) growth to accelerate to 7.8% in 2016-17 and then to over 8% going forward. Now, we have scaled back the PFCE growth estimate to 5.5% for 2016-17 and to 6.8% per annum going forward," the note added.
 
This trend shift in consumption expenditure will delay a revival in investments, CMIE says, adding, "We expect capital formation to shrink by nearly 2% in 2016-17 as against an earlier expectation of a 2.3% increase in the same. We had expected investments to pick up pace each year thereafter to reach 10% growth only in 2020-21. Gross fixed capital formation was expected to remain around 29% and reach 30% of GDP only in 2020-21. Now, we believe that the investments-to-GDP ratio would be only around 27-28%."
 
"Assuming that private final consumption expenditure does rise at 6-7% per annum, we project that capacity utilisation will rise sufficiently to drive at least some investments. We do not expect any big changes in government or private spending on infrastructure. The push for infrastructure development has been a constant since the mid-1990s. We expect this to continue similarly without any particular acceleration from the trend. We expect government spending to offset part of the impact of demonetisation through increased spending. But, government has a smaller role and can contain the damage only partially," CMIE concluded.

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COMMENTS

shrinivas

6 months ago

With the way the Govt., talking that there is no damage at all till now and if the damage is there, it is created by the opposition, we will never know what really happened ! The Govt., will manipulate figures and prove that the demonetisation is really a success story !
Even now the RBI governor is saying that he does not know how much currency has come back !

PRANAV DAMANIA

6 months ago

I agree with you Ramesh

Ramesh Mehta

6 months ago

Readers may want to read Howard Marks latest memo on "expert opinion"
Nobody really knows the impact. Only time will tell, but being too negative & listening to media is often harmful to investors...
https://www.oaktreecapital.com/insights/howard-marks-memos

Nifty, Sensex still in a bullish mode – Weekly closing report

The markets continued to rise this week. Nifty ended the week with a gain of 1.90%. It witnessed continuous buying during the week before selling pressure forced  Nifty to close at 8400.35 down 60.7 points from its high on Friday. The trends of the major indices in the course of the week are given in the table below:

Profit booking, coupled with rupee depreciation subdued the Indian equities markets on Monday. Pharma tumbled 1.5% whereas Metal and Auto turned negative with 0.1% of marginal losses. All eyes were on third quarter earnings season and macro data especially after the currency demonetisation. Asian markets rose on Monday tracking strong closure from main three indices of Wall Street. The Markets remained buoyed post US jobs data and ahead of policy measures under the reign of newly elected President Trump.
 
Hopes of positive third- quarter results, along with expectations on more spending support from the upcoming Union Budget and a strengthened rupee lifted the Indian equity markets on Tuesday. Eight sugar stocks hit their respective 52-week highs on the BSE with heavy volumes. BSE Metal and BSE Industrials were the top performers with the indices gaining by 1.42% and 1.57%. Britain's FTSE 100 continued its climb to record highs on Tuesday while Europe's top benchmark failed to hold early gains with financials the biggest drag.
 
Positive global cues, coupled with healthy third quarter (Q3) results pushed the
Indian equities markets higher on Wednesday. Besides, higher global crude oil prices and anticipation of sops to be announced during the Union Budget enhanced investors' risk-taking appetite. Healthy buying was witnessed in banking, metal and capital goods stocks. In the broader market, BSE Midcap index (up 1.4%) outperformed the headline indices. BSE Smallcap index gained 0.9%. Metal index rose on account of rise in international coking coal prices and China’s expected cut down of steel output in the next fiscal. Investors awaited the key quarterly corporate results from software services firm TCS and Infosys. The Asian markets was trading on a two-month high as investors were on the edge watching for President-elect Donald Trump's news conference later in the day for any clues to his policies on tax, fiscal spending, international trade and currencies.
 
Anticipation of budgetary sops, coupled with a strengthened rupee, buoyed the Indian equities markets on Thursday. Buying was witnessed in capital goods, IT and TECK (technology, media and entertainment) stocks. However, negative European indices and caution ahead of the release of the Index of Industrial Production (IIP) and Consumer Price Index (CPI) data for December capped gains. Pharma index pared earlier losses but still settled the day 0.60% lower. The index was down after Trump said yesterday pharmaceutical companies are "getting away with murder".
 
The US dollar nursed widespread losses on Thursday after President-elect Donald Trump's long-awaited news briefing provided scant clarity on future fiscal policies, disappointing bulls wagering on major stimulus. European shares fell, bucking gains in Asia and Wall Street overnight and weighed down by a 2% slump in healthcare stocks after Trump said pharmaceutical firms had been "getting away with murder" with their prices.
 
Profit booking, along with disappointing earning guidance from IT major Infosys, dragged the Indian equities markets marginally lower on Friday. The key indices provisionally closed the day's trade on a flat note - marginally in the red, as selling was witnessed in IT, automobile and Teck (technology, media and entertainment) stocks. The wider 51-scrip Nifty of the National Stock Exchange (NSE) shed 6.85 points or 0.08% to 8,400.35 points. The Sensex touched a high of 27,459.75 points and a low of 27,143.07 points during the intra-day trade. The BSE market breadth was tilted in favour of the bears -- with 1,490 declines and 1,237 advances. Sensex closed the week with gains of 1.90%.
 

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