MLM / Chain Money
Noose Tightens around QNet after 12 Long Years
From Bombay to Goa and Chennai, the noose is finally tightening around QNet, the global Ponzi scheme that has been allowed to raise several thousand crores of rupees for 16 years (upward of Rs8,000 crore, according to estimates) from gullible people, luring them with fake promises of high returns or an attractive business opportunity. If Kirit Somaiya raised the issue in parliament in early May, then another BJP leader thundered against the scheme and its political links at a press conference at BJP’s headquarters in Mumbai. 
 
QNet’s roots run deep into India’s powerful elite: politicians, bureaucrats, the police, investigative agencies, defence services as well as film and sports stars. It also enjoyed strong media clout as big advertiser and sponsor of popular television shows. But what next? Will the recent bursts of outrage and police action, finally, halt the steady and unrelenting march of a scheme that has successfully trapped people for over a decade? Let’s take a dispassionate look. 
 
QNet flourished during the United Progressive Alliance (UPA) and touted its connection with Nalini Chidambaram, wife of the powerful finance minister. This happened even  though an investigation by the serious frauds investigation office (SFIO) was ordered way back in 2010, 10 years after the company was set up in Chennai in the name of Gold Quest (Quest Net is another of its avatars), to sell numismatic coins, figurines and travel packages. 
 
In March 2012, SFIO signed off on a bulky ‘secret’ report, which remained buried for four years until Gurpreet Singh, a whistleblower and relentless crusader against QNet, who has faced untold persecution by the company, presented it in the Bombay High Court. The SFIO report rips apart every pretension that QNet runs a legitimate business. In fact, it calls QNet a threat to national security. The report also reveals how QNet, while running a pyramid scheme, has itself used petitions and lawsuits in various courts, including the Supreme Court of India, to obtain relief from investigation; invariably, it has had the most expensive and powerful lawyers in the country to argue its case. 
 
Even in 2010, the Supreme Court appointed a one-man commission to settle complaints against QNet but allowed it to continue doing business because the question of its legality was left open; it has not been settled as yet, says the SFIO. In effect, like hundreds of other Ponzi schemes, QNet had mastered the art of gaming the legal system to ensure that its operations were allowed to continue undisturbed by merely settling the few hundred formal complaints lodged against it. 
 
The most startling part of the SFIO report is the categorical assertion that the QNet group is “not only conducting an illegal business contumaciously, but is also keeping and submitting falsified documents to the regulatory agencies.” Further, that its business operations and conduct are “totally unfair and prejudicial to public interest. They are also a potential threat to national security,” since the persons enrolled include large numbers from defence services and ministries. The report also establishes, with facts and figures, how a majority of people enrolled by QNet as participants in a big business opportunity have not been paid their commissions and have lost money. 
 
If the SFIO report were not explosive enough, the government has a detailed study on Ponzi and pyramid schemes by the standing committee of parliament on finance, headed by Veerappa Moily, which was presented in October 2015. This report provides a macro perspective by pointing out that “huge amount of money has been transferred out of Ponzi schemes to multi-state cooperatives” which have become a “shelter for illegitimate funds due to their weak regulatory regime.” More shockingly, it says, such cooperatives, operating under the agriculture ministry, have increased 100-fold since 2010. 
 
With these two reports in hand, we should have witnessed a nationwide crackdown against QNet and thousands of other Ponzi schemes that are looting ill-informed and gullible people. Instead, we have some shouting and name-calling in parliament and at press conferences and a few hundred orders by the Securities & Exchange Board of India (SEBI) asking money circulation schemes to stop raising funds or to refund the money. We have no clue if these orders are being obeyed and whether SEBI even has the capacity to enforce them. Meanwhile, each law enforcement agency uses a different law to initiate action against specific Ponzis. We do not see any attempt as yet to act on the standing committee’s recommendation to frame a single comprehensive law that will actually protect people from this rampant loot through pyramid and multi-level marketing schemes. 

User

COMMENTS

gurupreet

3 months ago

GOOD NEWS...QNET VICTIMS IN MUMBAI...DEDICATED QUESTIONS & ANSWERS SESSION FOR QNET VICTIMS on Sunday 18th September 2016.

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 buy 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 tomorrow is the BIG DAY finally , Please do join us tomorrow (Sunday) afternoon at 1.30 PM sharp at Andheri east, outside Sarangi Restaurant (Just 1 minute from the Andheri station on the east side).

Please do come and also inform other victims of the QNETSCAM.
Tomorrow (Sunday) afternoon sharp 1.30 PM, outside Sarangi Restaurant , Andheri-east, Mumbai.

Please note we have limited seats, first come first served basis allotment..so make sure to reach in time __/\__ . You can contact on 7498063701 in case of difficulty in locating us :)

Jai Hind.

jitu moni

3 months ago

http://timesofindia.indiatimes.com/city/hyderabad/4-persons-associated-with-MLM-company-arrested/articleshowprint/54204335.cms?null
Four persons, who were associated with Hong Kong-based QNET, a multi-level marketing (MLM) company, and duped 200 persons by promising them jobs, were arrested by Central Crime Station (CCS) officials on Thursday. However, the MD and directors of QNET and its sister company Vihaan Direct Selling are still at large.


Deputy commissioner of police (CCS) Avinash Mohanty said Sreenath Konda, Prasanna Kumar Reddy, V Kanchana, B Dhan Raj were arrested from different locations in the city for cheating people.


Police said the accused had been enrolling gullible people as agents by collecting Rs 10 lakh from a group of 10 persons.


Each person would be given status of promoter, direct them to attract a group (i.e., 10 persons) and make them join QNET by paying Rs 10 lakh, for which the promoter would be assured commission.

jitu moni

3 months ago

http://zeenews.india.com/news/maharashtra/qnet-case-sc-directs-maharashtra-govt-to-file-latest-probe-report_1924693.html
Mumbai: The Supreme Court on Thursday directed the Maharashtra Government to file the latest status report regarding investigation so far on the anticipatory bail plea of World Billiards champion Michael Ferreira and four others, who are facing charges of money laundering in the multi-crore QNet case.

The next hearing in the matter will take place on September 14.

Besides Ferreira, the others whose anticipatory bail plea were rejected were Malcom Desai, Vanka Srinivas, Maganlal Balaji, all directors of M/s Vihaan Direct Selling (India) Pvt. Ltd, and Suresh Themiri, director of Transview Enterprises.
They are facing charges under Sections 420 (mischief), 468 (forgery), 471 (using forged document knowing it is not genuine) of the Indian Penal Code (IPC).

Justice Mridula Bhatkar of the Bombay High Court, who took on record the statement of public prosecutor Pradeep Gharat that investigations were still on, had in May rejected their anticipatory bail pleas.

Ferreira had started the operations of QNet, a multi-level marketing company, in India via his firm Vihaan Enteprises.

The QNet cheating case began with a complaint by Gurpreet Singh Anand, who raised his voice after losing Rs. 30,000.

According to the police, the money involved has crossed Rs. 1,000 crores in the alleged scam with more than five lakh investors allegedly losing their money in the case against QNet which is being probed by the Economic Offences Wing.
ANI

jitu moni

4 months ago

http://www.newsambit.com/eow-of-delhi-police-registered-case-against-qnet-india-and-its-irs/
NewsAmbit, New Delhi
Delhi Police Economic Offence Wing(EOW) has registered an FIR against QNET India/Vihaan Direct selling India Private Limited and its three independent representatives on the allegations of cheating and fraudulently operating the multi level marketing, which is illegal in India. Police have initiated the investigation and suspecting huge scam, which is estimated in crores.
A senior Police officer of EOW said that we received a combined complaint against QNET India and its three independent representatives from more than dozen of people in the month of March this year. As per the allegations of main complainant Anuj Jain alleged that his friend Himashu Aggarwal approached him for an business opportunity. He said that he is an independent representative(IR) of an e-commerce based company. He said that he can arrange an meeting with the other IR’s who will tell you about the business and if they find you suitable you will get chance to be a part of the company. After few days Himanshu called Anuj Jain to come with a CV at a café situated in Nehru Place area on 29 November 2015. Anuj reached there, where he met with Himanshu and his to associates Anita Jaggi and Kanika. Trio told him about the business profile and also assured that this is not a networking marketing company. They demanded Rs 6.5 lakh to be a member of the company. They also said that company has millions of customers. IR of the company is treated as a partner and also got the profit share for each sale. After three four days Anuj gave them 6.5 lakh rupees but after some time he got to know that this is a multi level marketing company and fraudulently cheating innocent persons by roping them in it’s banned business with the help of IRs.
Police said that Anuj is not the only complainant so many more complainants also approached to EOW. After which a preliminary enquiry had conducted. It was found that some persons who are termed as IR contact their friends and close persons to join a new e-commerce business. They don’t tell the name of the company or complete business module at the beginning. After alluring them they set various amounts from the victim. Independent Representatives(IR) get training during the joining and talk to make further members. These kinds of IRs of the company are operated from different cafes and food courts situated in Delhi and NCR.
Those who join the company get user id etc and products like ravel packages, some other items etc are shown purchase from their money. The delivery address given in the portal is also found of overseas area most of the time and mostly that address is too fake type location only which shows that no products are being sold and it is a completely a money circulation scheme. Two websites were found involved in the namely www.unetindia.in and www.cmetindia.net were found mated to Vihaan Direct selling (India) Pvt ltd which is stated Indian Franchisee of Hong Kong based net company. Investigations are on. Police are trying to unearth the whole network of the IRs on which this company is running its business unlawfully in Delhi. A case has been registered u/s 420/120B/34 IPC and 4/5/6 of Prize Chits and money circulation Schemes(Banning) Act,1978 .

Profiles of IRs
Himashu works with Samsung
Anita Jaggi works with RBS

jitu moni

6 months ago

Bluru QNet agent who earned 50L a yr as commission held
Mumbai: The Economic Offences Wing (EOW) has arrested Ram Singh, an accused in the Rs 1,000 crore QNet case, for earning Rs 50 lakh or more as commission each year from proceeds of the crime.

Singh, a Bengaluru resident, was arrested last week after the imigration authorities at Bangalore airport detained him over a look out circular notice (LOC) issued by the Mumbai police. "We are going through all his bank account details and trying to ascertain the source of money to his account," said DCP Pravin Padwal of the EOW.

Singh's name had cropped up during the initial investigation in 2013 but the police could not locate him then. In January 2015, a police team visited his Bengaluru residence but did not find him there. The house was locked. He is the 19th accused to be arrested in this case so far.

"We are working to arrest all the culprits in this case. A special investigation team has been formed to nab the othe accused invovled," said Dhananjay Kamalakar, joint police commissioner, EOW. Singh, said police sources, has been sending money to his daughter who is studying in Canada. "We have to know his source of income. He has sent a major chunk of money to Canada. We suspect this money was gained from QNet. Moreover, he was looking after the QNet business in Dubai and has been shuttling between Dubai and India. We got his passport number late. Soon after getting it, we issued an LOC notice and he was detained," said an officer.

A special MPIDA court in February this year rejected the anticipatory bail plea of Michael Ferreira (77) winner of the World Amateur Billiards Championship and a Padma Bhushan recipient, and four others, Malcom Desai, Vanka Srinivas, Maganlal Balaji, all directors of M/s Vihaan Direct Selling (India) Pvt Ltd and Suresh Themiri, director Transview Enterprises. They all have approached the high court now in the QNet case.

"They posed as a marketing firm which would sell bio-discs, watches, herbal products, holiday packages, etc. They even claimed that by using the bio-disc, one can cure cancer and brain diseases," cops said. Some money has been transferred to Malayasia, Singapore and Hong Kong, too, cops added.

jitu moni

7 months ago


http://timesofindia.indiatimes.com/city/mumbai/EOW-to-now-probe-celebs-role-in-QNet/articleshow/52333087.cms
Mumbai: The city's economic offences wing (EOW) is now looking into allegations that several Bollywood celebrities campaigned for the cheat firm, QNet, through advetisements or by promoting the schemes of the self-proclaimed marketing firm.

Gurupreet Singh Anand, complainant in the Rs 1,000-crore QNet cheating case, on Wednesday said at least four Bollywood actors promoted the Ponzi schemes at different times in the QNet's promotional programs in United Kingdom and Malaysia. He has submitted a 23-page letter wherein he has attached the celebrities' pictures promoting the programs.

"I have submitted letter and all the relevant information to the EOW on May 12. I am hoping some action soon," Anand told TOI. He alleged that the money was laundered from India to Hong Kong and Malaysia.

Anand was speaking at a press conference where suddenly a group of QNet sympathisers appeared with "I trust QNet" placards.. They were later asked to leave the conference room.

atul gupta

7 months ago


Be ready to fight against QNET and all your uplines including friend.
Find QNET REFUND and FIGHT AGAINST QNET procedure as below.
1st Option
If your purchase on portal is in INR rupees then with in 30 days of purchase or if your purchase is in USD dollar then with in 7 days you can send email to Qnet customer support for refund otherwise Qnet will deny you refund. Then go to 2nd option which all need to go for even after you get refund to get QNET banned from India and to save our brothers & sisters.
1. Get your IR ID first.It will come to your mail box once your upline register your email id on portal. If email id is given wrong then call Qnet customer support numbers and complain about your upline. Ask your IR ID from them.
2. Send a cancellation mail to the support team of QNET with a subject line as "REFUND IN****".
provinding all details of transactions and product details.Usually IR number will be like IN4444 and all. Attach scanned PAN CARD in the mail to them.
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
3.Once this mail is sent, the support team will create a CRF number and sends to Hong Kong team for approvals for the refund request. It will take 15-20 working days for the approvals for refund request.
4.Meanwhile, mail them or call them on every alternative days for an update.
Numbers:
9900060061,62,64,68-veronica
9900060605-rekha,jasvinder kaur
5.Once Refund request is completed ,they ask for the mode of payment.
Ecards or Account Money transfer. Better go for Money transfer to your account.
If you opt for account transfer, then you have to send a scanned copy of your account cheque leaf or bank statement.
6.After 20 working days, you will get your money refunded of the product to your bank account.
7.Rest of money left , you collect from your upline by filing complaint in local police station.
2nd Option
pls all go for 2nd option even if you get money refunded as per option 1 by QNET to ban QNET and save indians.
File written complaint against your friend and all uplines at local police station and write in complaint that QNET is running money circulation scheme which is banned in india as per prize ,chit and money circulation scheme ,1978. Your uplines will be called by police and they will return you money through QNET or themselves as you can not get refund from Qnet after one month is over if products purchased through indian portal and after 7 days if purchased through world portal. Warn your uplines that you are going to file complaint/FIR against them.
Besides above process kindly lodge your complaint to THE DCP, ECONOMIC OFFENSES WING, MANDIR MARG, DELHI OR EOW MUMBAI also to ban QNET from India to save our brothers & sisters.
In your complaint attach uplines photos, mobile numbers, your bank account statement if you transferred money from your account to upline account or cash/DD deposit receipt, pan card, address proof, purchase receipts, gurupreet singh anand first FIR copy against Qnet scam and google news 5-6 against Qnet. Mention in your complaint that meeting took place nearby your home or office otherwise local police will ask you to lodge complaint at police station where actual meeting took place.
File complaint at your nearby police station and EOW/Crime branch both in your city to fight against QNET. Please whatsapp me at 9871853120 only if any extra information required.

atul gupta

7 months ago


Be ready to fight against QNET and all your uplines including friend.
Find QNET REFUND and FIGHT AGAINST QNET procedure as below.
1st Option
If your purchase on portal is in INR rupees then with in 30 days of purchase or if your purchase is in USD dollar then with in 7 days you can send email to Qnet customer support for refund otherwise Qnet will deny you refund. Then go to 2nd option which all need to go for even after you get refund to get QNET banned from India and to save our brothers & sisters.
1. Get your IR ID first.It will come to your mail box once your upline register your email id on portal. If email id is given wrong then call Qnet customer support numbers and complain about your upline. Ask your IR ID from them.
2. Send a cancellation mail to the support team of QNET with a subject line as "REFUND IN****".
provinding all details of transactions and product details.Usually IR number will be like IN4444 and all. Attach scanned PAN CARD in the mail to them.
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
3.Once this mail is sent, the support team will create a CRF number and sends to Hong Kong team for approvals for the refund request. It will take 15-20 working days for the approvals for refund request.
4.Meanwhile, mail them or call them on every alternative days for an update.
Numbers:
9900060061,62,64,68-veronica
9900060605-rekha,jasvinder kaur
5.Once Refund request is completed ,they ask for the mode of payment.
Ecards or Account Money transfer. Better go for Money transfer to your account.
If you opt for account transfer, then you have to send a scanned copy of your account cheque leaf or bank statement.
6.After 20 working days, you will get your money refunded of the product to your bank account.
7.Rest of money left , you collect from your upline by filing complaint in local police station.
2nd Option
pls all go for 2nd option even if you get money refunded as per option 1 by QNET to ban QNET and save indians.
File written complaint against your friend and all uplines at local police station and write in complaint that QNET is running money circulation scheme which is banned in india as per prize ,chit and money circulation scheme ,1978. Your uplines will be called by police and they will return you money through QNET or themselves as you can not get refund from Qnet after one month is over if products purchased through indian portal and after 7 days if purchased through world portal. Warn your uplines that you are going to file complaint/FIR against them.
Besides above process kindly lodge your complaint to THE DCP, ECONOMIC OFFENSES WING, MANDIR MARG, DELHI OR EOW MUMBAI also to ban QNET from India to save our brothers & sisters.
In your complaint attach uplines photos, mobile numbers, your bank account statement if you transferred money from your account to upline account or cash/DD deposit receipt, pan card, address proof, purchase receipts, gurupreet singh anand first FIR copy against Qnet scam and google news 5-6 against Qnet. Mention in your complaint that meeting took place nearby your home or office otherwise local police will ask you to lodge complaint at police station where actual meeting took place.
File complaint at your nearby police station and EOW/Crime branch both in your city to fight against QNET. Please whatsapp me at 9871853120 only if any extra information required.

Ro Desu

7 months ago

If you are reading this comment and are researching on Qnet.
First find out which team you will be in. There are three teams and many more.
BE AWAY OR STAY AWAY FROM -TEAM INFINITY UNDER KSHIPRA AND DOWN. VERY GREEDY AND DANGEROUS PEOPLE.

Ro Desu

7 months ago

If you are reading this comment and are researching on Qnet.
First find out which team you will be in. There are three teams and many more.
BE AWAY OR STAY AWAY FROM -TEAM INFINITY UNDER KSHIPRA AND DOWN. VERY GREEDY AND DANGEROUS PEOPLE.

D S Ranga Rao

7 months ago

In the hindsight, i feel whether it's Qnet or some other net, it's ultimately the customer who's at fault and to be blamed for his/her foolishness and greed. You see, these fraudsters have not come and grabbed their customers forcibly in to their nets. The customers themselves willingly walked in to their traps without having any sense of prudence. There are cheats everywhere including in the Western countries. But the regulations are so tough in the Western countries that nobody can escape the law there. But not so in India. The bigger the fraud, the easier to escape, because stately figures are involved in cheating with the tacit or indirect connivance of the state itself! Without assessing pros and cons of these 'games', if one chooses to dive in to them, he/she will be doing so at their own risk. After all, one should know that there is no short cut to get rich quick overnight except by hard work and prudence.

REPLY

vimlesh

In Reply to D S Ranga Rao 7 months ago

Sir.. the problem is that the people are being cheated by thier near and dear ones. Even in some cases wife is pushing husband to join.......or husband is pushing wife.....or brother....very close friend to whom you share everything........prudence doesn't work there. Its the credibility of the close one which works and people submit........After the money has transferred victim sees the change in the behavior of his close one..... ...........I have also been cheated for 6 lacs by my close colleague Mudit mishra(Sr manager Idea cellular limited, corporate)...........It is very difficult explain the complete situation........pathetic.........He is greedy like anything..........I have seen his greed......He is made for money..........He behaves very nicely in public, office, very down to earth. But I have seen the beast inside him in the "V-cell", "Qnet association", "V-con"............He can do anything......At last I am paying EMIs......have to pay for the next 4 years..........cost of believing on friends...........This is really damaging our side and India...........People will not help and believe anybody...........Qnet is producing criminals.........It is criminal producing factory..........Vijay mallya and others just looted money, did not transformed innocent people to criminal..........but this Qnet is transforming innocent to criminals........

D S Ranga Rao

In Reply to vimlesh 7 months ago

That's what prudence is, not herd mentality. Just because your spouse dived in to the pool, you needn't follow blindly without pausing and finding it safe enough for you or not. If not greed or prudence, you followed the herd mentality by blindly believing in your so called friend and in the end you had to suffer. Prudence dictates to be of your own; but, herd mentality says that just because husband does it, wife also can or must do and vice versa which is not correct in financial investments. Sorry, if i am a bit harsh. But, truth is always bitter.

Ro Desu

In Reply to vimlesh 7 months ago

I agree with both of you as both have very strong points. In India people are starved for money and high desires. ALL THEY DO IS FISHING, SOME FISHES GET FRIED SOME ESCAPE.
Important thing is to identify these traitors and inform everyone around them to be careful.
It's like a war on the families. Qnet is definitely producing crimes and a terminator is required to erase it.

Ro Desu

7 months ago

Qnet is made to look clean from outside. But inside people are rotting. There is so much of fights always amongst them. But mind you they are good in drama too. I could call them con-men too.
Now IR's say Qnet is changing lives on many people. Okay let's say -great job. But let's examine the facts too-
1. If Qnet is changing lives of many people then where are these many people? Why don't they come in the open and protest? Why don't they prove that they are getting so much of money every Week? Why don't they give answers to the questions the public or prospect asks? Why there is sense of mystery and magic before joining the business?
Qnet IR s only declare only 3% people succeed in this business. I don't understand how this data shows Qnet is changing lives?
Or rather I should looting lives of this country

Ro Desu

7 months ago

Qnet is an absolute fraud and threat to all individuals of the world. It's a virus which is spreading very fast and looting people of their hard earned money. An ANTI DOTE is always there and it's coming soon. The remedy is termination of Qnet and its allies. A CLEAR SWEEP

Ro Desu

7 months ago

Qnet is an absolute fraud and threat to all individuals of the world. It's a virus which is spreading very fast and looting people of their hard earned money. An ANTI DOTE is always there and it's coming soon. The remedy is termination of Qnet and its allies. A CLEAR SWEEP

vimlesh

7 months ago

I have attended some "association"(daily in food courts of malls till 11:00 PM) and "V-cell" (Weekly, even upline comes to know about exact address just 15 min before it starts, to avoid police raids), there I came to know that even our minister Mr Ram vilas paswan is trying to get Direct selling accrediation in India. They have got the Direct selling included curriculum of some university of karnataka. They are working slowly with ministers,media,police,legal advicers.... to completely rule the country as per their ill will. Qnet is another East India company. East India company took over royal families of India and by default the people. Qnet is attacking on both fronts, from top (ministry, celebrities......anil kapoor, ram vilas paswan, nalini chidambaram etc).......and common people(friends, relatives, close family members, son, daughter......). They are playing the double strategy. Qnet speakers in thier seminars always talked about the lavish life of Dubai, malaysia, German cars, never discussed about the product. ........This is greed and totally game of words........................I have been cheated for 6 lacs by my colleague Mudit mishra(Sr manger Idea cellular Ltd, corporate team)

How the Mauritius Tax Treaty will affect FII inflows into the Indian market
India has amended its 33-year old tax treaty with Mauritius that may hit investment inflows, especially considering over the past 10 years, it was nearly $81.8 billion or 34% of the total inflows routed through that country. India has signed a protocol agreement with Mauritius to prevent evasion of taxes on income and capital gains by entities of either side. Among other measures in the protocol pact with Mauritius is to have a source-based taxation of capital gains on shares. 
 
According to Edelweiss Broking Ltd, nearly 60% of investments coming into India through participatory notes (P-notes) or overseas direct investments (ODIs) come through Singapore and Mauritius. The changes in tax laws would mean that short-term capital gains would now are taxed for but starting 1 April 2017. This means the government has given ample room for changes to take effect and even out the transition, it added. 
 
Edelweiss said, "Private and venture capital investments may also see an impact. As most of these investors prefer to invest through alternate routes like preferential shares, the changes in tax law would entail applicable taxes on conversion. Therefore, some of these investors may accelerate investments till the window of 1 April 2017 kicks in."
 
"Indian markets have seen a number of factors turn in favour over the recent months. Reversal in commodities has removed the threat of systemic risk in commodity producing emerging markets, monetary policy in US and elsewhere remain accommodative, monsoon rainfall is expected to be above normal, government investment in infrastructure remains supportive and banking stress seems to be priced in. There we believe that the current reaction to the changes in tax laws is an opportunity to benefit from the upcoming bull trend. We continue to remain bullish on markets," the report added.
 
Here are the important changes and its effects...
 

The Treaty Change

  • If as a foreign investor you invest in Indian companies by buying shares, at the time of selling these investments you pay capital gains tax. Now there are certain countries with which India had a long standing double taxation avoidance agreement (DTAA).
  • This agreement allowed capital gain on the sale of shares to be untaxed in India. Countries like Mauritius, Cyprus and Singapore had a these DTAA which allowed investors to set up shell companies in these countries to enjoy no taxation.
  • There are around 88 countries with which India has DTAA agreement but in few countries (Mauritius, Singapore and Cyprus) DTAA agreement clause give exception from capital gain, interest received, dividend tax. After the change in treaty with Mauritius this tax haven status will go away.

The Tax Change

The “worry” part
a. From 1 April 2017, any shares that are purchased, by Mauritius entities, will see capital gains taxes in India.
b. 7.5% withholding tax on Interest income arising in India to Mauritian resident banks in respect of debt claims or loans made after 31 March 2017.
c. Shares bought and then sold after 31st March 2019 will attractive full domestic tax rates
 

The positive, Grandfathering

a. Shares bought before 1 April 2017 will exempt from tax, as per amended DTAA
b. Shares bought after 1 April 2017 and sold before 1 April 2019 will attract half the domestic tax rate (7.5%, which is half of 15%). For this to be applicable the investor needs to qualify under the limitation of business (LOB) principle Long term capital gain on sale of shares is currently zero in India; therefore the impact would be on futures and options (F&O) activity, P-Notes (intensity of impact would be clear after releasing of protocol text.) 
 

The Foreign Flows

  • In the past 10 years India has received $239 billion of foreign direct investment (FDI) inflows. Out of this, nearly $81.8 billion or 34% has come through Mauritius. So, Mauritius is very important for FDI flows into India.
  • In the same period Singapore has accounted for $42 billion or 22% of FDI flows into India. So put together Singapore, Mauritius account for more than half of the FDI into India.
  • Since both these countries had DTAA, amendment to the tax laws can cause changes in flow of FDI.
 

User

Transforming governance with app-based platforms
Technology solutions and apps can transform citizens' access to civic services and governance as shown by Nashik Municipal Corp. Mumbai and other cities too can use similar app-based platforms to transform governance and ease lives of citizens, say experts at a panel discussion organised by Moneylife Foundation. These experts have developed private apps to offer solutions to everyday issues and to help build communities.
 
The experts include Umesh Jain, Founder of AasPaas, Chetam Temkar, Founder of SmartShehar and Prof Avkash Jadhav, nominated municipal councillor at the BrihanMumbai Municipal Corp (BMC). Prof Jadhav also explained initiatives of the municipal corporation and provided some perspectives on why citizens need to participate more actively in civic governance in order to make it effective.
 
Mr Jain, a technology expert, said AasPaas is an app-based neighbourhood engagement platform that connects all stakeholders such as citizens, administration officials, civic bodies, elected representatives and non-governmental organisation (NGOs). "Our objective is to help build stronger communities and enable quicker resolution of civic issues, better governance and effective delivery by NGOs too. It is like a Mohalla on Social Media," he added.
 

While the app is ready, AasPaas plans to start a pilot project for community engagement at Bandra, very shortly. His idea is that the app would not only allow citizens to engage with municipal authorities, but will also be the go-to destination to discover entertainment, sports events, social gatherings and fun community events in the neighbourhood.  
 
Mr Temkar, who, after working with several Fortune 500 companies has returned to India from the US, provided his broader views on concept of SmartShehar. He says, "We can re-imagine 'Smart Cities' through a series of mobile phone apps that will allow you to ease commuting, crowd source information, report complaints, connect with other like-minded citizens, log events and so on. This has transformational implications across urban planning, agriculture, education and transport planning."
 
For example, Mr Temkar says when someone opens the SmartShehar mobile app in Mumbai, he will get basic information like location, nearest railway station, city bus stops as well as fares to reach the station. In addition, he said, on the app, one can raise specific issues that are then forwarded to the authorities for redressal. "We would really love to have the authorities responding to such queries, grievances online. But as we know, most government offices still prefer the document submission, we have given this option as well for the users. User can take a print out and submit it to the authorities. If the issues are resolved, then the user can close it. There are several NGOs that are willing to take issues that remain unresolved after certain time," he added.
 
SmartShehar already has successful apps to know about BEST and railway routes, which have received wide coverage.
 
Mr Jain also highlighted the role played by NGOs in such app based platforms to improve governance. Replying to a question asked by Prakash Joshi, one of the attendees, Mr Jain said AasPaas apps helps connect citizens who wants to volunteer and the NGOs who are looking out for such help locally. 
 
The session was attended by several activists and concerned citizens leading to an interesting discussion. A key question was how to get people more engaged. Prof Jadhav correctly pointed out that apps should not give citizens the impression that they can merely complain at the press of a button on their smart phones, there is a crying need for people to participate in the democratic process.  Echoing this view, Mr Temkar said, while there were endless complaints about lack of amenities or proper services, most citizens have not made the effort to file a single complaint. 
 
Another activist asked whether smart corporators and aspiring corporators could use the apps effectively to engage with their wards and constituencies. Replying to this, Prof Jadhav said, he had shared the app-based platform initiatives with some of the corporators from across the party line, and received good response. "They (the corporators) are very much interested in such developments, but due to time constraints and pre-engagements, may not be present for today's session," he asserted.
 
According to Mr Temkar, even a local member of Legislative Assembly (MLA) has shown keen interest in SmartSheher and they are taking it forward. 
 
When asked for funding module used by app-based platforms, as most government bodies shy away from supporting such initiatives, both the experts and developers feel that the government should support them. Especially, Mr Temkar explained how similar app-based platform is funded by the US government. However, in India, since there is lack is similar support, we need to raise the funds by local advertising and may be by sharing the data, he said.
 
Mr Jain says AasPass will do the local advertising as well as may take some part money or fees from NGOs seeking volunteer or may be from the reward received by people for raising queries on the platform. But it will take some time, he added.    

 

 

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