The HC refused to defreeze bank accounts of Transview Enterprises owned by Suresh Thimiri, who is often touted as QNet India's CEO but had denied any relations with the MLM operator
The Bombay High Court on Wednesday rejected interim application filed by Suresh Thimiri, who is often touted as QNet India's chief executive, to defreeze bank accounts Transview Enterprises Pvt Ltd, a separate company owned by him.
Transview Enterprises is an associate company of Vihaan Direct Selling Pvt Ltd that handles QNet's multi-level marketing (MLM) operations in India since 14 April 2012. Before that QNet's Indian operations were controlled by QuestNet Enterprises (India) Pvt Ltd, a company registered at Chennai.
Vihaan Direct Selling, in which Michael Ferreira, the former world billiards champion, owns 80% stake, is a direct selling agent of QNet and had done large financial transactions with Mr Thimiri's company Transview. This made the EOW to freeze Transview's bank accounts in ING Vyasa Bank at Bengaluru.
Mr Thimiri, who in his anticipatory bail application on 19 August 2013 had denied any relations with QNet and its representative, however, has ratified deals between Vihaan Direct Selling and his company, Transview Enterprise.
In his application before the Bombay High Court to defreeze bank accounts of Transview Enterprise, Mr Thimiri said, "The applicant (Mr Thimiri, director of Transview) is in the business of importing and manufacturing products such as Bio Discs, Chi Pendants, Nutriplus, Homepure, watches and various other products and sells the same to M/s Vihaan Direct Selling India Pvt Ltd."
While Mr Thimiri is trying very hard to de-link himself from the probe, his own submissions are revealing truth. Vihaan Direct Selling carries 'QNet' brand in India that is registered trademark of Transview Enterprise of Mr Thimiri. The submission made by Mr Thimiri before the Courts only underline his links with QNet in India.
Last week, the Enforcement Directorate (ED) registered a case under the prevention of money laundering act (PMLA) against QNet, Vihaan Direct Selling, Ferreira and QNet founder Vijay Eswaran and three other independent representatives (IRs) of the MLM operator.
The Economic Offences Wing (EOW) of Mumbai Police, which is also probing the MLM fraud, had so far arrested nine team leaders of QNet for allegedly duping investors by offering to sell products such as magnetic disks, herbal products and holiday schemes through fraudulent practices. The accused have been charged with cheating and forgery under relevant sections of the Prize, Chits and Money Circulation Schemes (Banning) Act 1978.
For weeks, the former world billiards champion avoided appearing before the EOW until a Mumbai court hearing his anticipatory bail application asked him to present himself before the police by 27th January. On 31st January, the Session Court extended till 17th February the interim protection from arrest granted to Mr Ferreira in the QNet scam. He however, has been asked to attend EOW offices as and when required besides obtaining prior permission from the Court before going abroad.
The complainant, Gurupreet Singh Anand, a computer consultant from Lokhandawala, Andheri in his first information report (FIR) before the EOW stated that his wife was duped for Rs30,000 by some people who had introduced themselves as the independent representatives (IRs) of QNet. Mr Anand told the police, “They (IRs) had said that one of the bio-products my wife bought could be used to treat my 12-year-old son's brain-related diseases.”
Moneylife’s online survey on tax compliance and issues shows that one out of ten respondents indulges in tax avoidance, which can land them in trouble. TDS credit mismatch is still an issue for 40% of respondents
A survey conducted among Moneylife readers on tax compliance and issues shows that respondents have varying degrees of awareness of various tax implications. Almost 8% have income from ‘other’ sources (business, bank fixed deposit-FD, stock/ mutual fund dividends/ capital gain), but do not show these in their tax returns. Over 9% even file form 15G/15H to prevent TDS (tax-deduction-at-source), even though they owe tax. Both the cases can be termed as tax avoidance which is a serious offence as we mentioned on our Cover Story “10 ways your unpaid income tax may boomerang” .
Our online survey received 715 responses.
Three out of four respondents are aware of advance tax (different from TDS) payment rules. But, only one out of two is aware of what assets attract wealth tax. Even worse, only one out of three know about annual information return (AIR) and how it can affect them.
Two out of three respondents always view Form 26AS before filing tax returns. Surprisingly, only 62% of respondents find that Form 26AS TDS credit matches with the tax deducted in reality. It means you will have to check with the bank/company to ensure that it gets corrected; otherwise you will end up paying taxes you really don’t owe.
Only 61% get Form 16 (salary) and 16A (other than salary) on time and without any hassle. These forms are your right and, hence, demand it from the concerned bank/company. Your TDS certificate is your credit receipt for taxes paid. Nearly 40%, do not file Form 15G/15H to prevent TDS deduction if they don’t have any taxable income.
Here are the Survey results in detail…
Please read Moneylife Cover Story - 10 Ways Your Perfect Tax Return Can Boomerang
Noting that compliance need to be enforced, the finance minister said in cases of deviations, faith must be put on the company's board of directors and shareholders to take action against those violating laws
Finance minister P Chidambaram on Wednesday said that regulators should intervene only in cases of gross violations by companies or when there are clear cases of criminality so that they do not get over burdened.
Speaking at the Golden Jubilee celebrations of the Central Vigilance Commission (CVC), the minister said the new companies’ law aims to ensure transparency, better disclosures and better accountability.
"Regulator or an armed regulator must intervene and I urge that they do so only on the basis of gross violation or gross excesses or if there is clear case of criminality, Chidambaram said, adding "We must keep faith in self-regulation".
He further said that if any non-criminal deviation shall be investigated or regulated by regulator, that way regulator will simply be over burdened by work and regulation will fail.
Noting that compliance need to be enforced, the finance minister said in cases of deviations, faith must be put on the company's board of directors and on shareholders to take action against those violating laws.
Referring to the new companies act, the minister stressed on caution while exercising the powers. "While I strongly support the structure of the new Companies Act, I would urge caution in the manner in which powers are exercised," he said.
"I reiterate, we must bring self-regulation, we must enforce compliance, need to heed to board of directors and shareholders and only in exceptional cases should regulator intervene to punish gross grave cases of proven criminality," Chidambaram added.
The new Companies Act, which was approved by Parliament last year, has various provisions to protect investor interests and to prevent corporate misdoings.
Later replying to questions, Chidambaram also said, "We have a problem of corruption and we have to deal with it. The belief that India is most corrupt nation is completely wrong.