MLM / Chain Money
QNet: The Suresh Thimiri link between Vihaan and Transview

Mr Thimiri, the so-called CEO of the controversial MLM, owns registered trademark of QNet in India. He also admitted before the High Court that his company Transview imports and manufactures products for selling to Vihaan Direct, the official franchisee of QNet in India

The case of QNet, the Hong Kong-based controversial multi-level marketing (MLM) operator is taking new twists every day even as all top executives of the company in India decided to stay hidden citing a case filed with economics offences wing (EOW) of Mumbai police.


Interestingly, Suresh Thimiri, who is often touted as QNet India's chief executive and had denied any relationship with QNet or any of its representatives, owns the 'QNet' trademark in India through his company Transview Enterprises Pvt Ltd! See the images below obtained from Trade Marks Registry. Mr Thimiri's company has filed class 42 application for 'QNet' trademark in India.

As Moneylife reported, Mr Thimiri, in his anticipatory bail application filed on 19 August 2013, before additional session Judge DA Dholkia had said, "The applicant (Thimiri) does not hold any sort of relation neither with the Company (QNet) nor its representative (including Eswaran and Vihaan Direct Selling India Pvt Ltd) against whom the Complaint has been lodged by the respondents (Gurupreet Singh Anand) in Oshiwara Police Station." (See image below)

Transview Enterprises is an associate company of Vihaan Direct Selling that handles QNet's 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. QuestNet Enterprises was operating QNEI eStore, a platform from where IRs, which is how the investor-dealers of QNet are described, could place orders or buy products and also enrol new recruits. After launching Vihaan, the company asked all its old IRs to mandatorily register under the new business name in order to receive their commissions. Vihaan 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 had denied any relations with QNet and its representative, 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."


These revelations may come as shocker to few die-hard independent representatives (IRs) of QNet as they strongly believe that all QNet products are imported! From where? Only the company knew about, as it is kept hidden from public view. Anyway, now with Mr Thimiri's clarification about 'manufacturing' of QNet products, these IRs will know the truth.


After perusing both the applications filed by Mr Thimiri before Courts, here are some facts...

1. Mr Thimiri accepted that Transview does not have any relations with Vihaan Direct Selling except supplier-purchaser relations.

2. Mr Thimiri's Transview Enterprise owns the QNet trademark (used exclusively by Vihaan) in India.

3. Vihaan Direct Selling is QNet Ltd's franchisee that carries the QNet brand name in India. After launching Vihaan, the company asked all its old IRs to mandatorily register under the new business name in order to receive their commissions.

4. Mr Thimiri has been named as accused in the report submitted by the EOW before the Sessions Court, Mumbai. It states: “The accused Suresh Thimiri has played active role in running the Money Circulation Scheme under the guise of investment opportunity and the income earned by the participants is based on enrolment of new members into the scheme.”


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.


Another interesting aspect in the whole episode is all top officials (?) of QNet India do not want to reveal their identity and remain hidden. We repeatedly sent emails to the company's official PR agency and also some officials from its parent QI group.


We asked "Can you please tell us about Mr Suresh Thimiri, who is often labelled as India CEO of QNet on QNetIndia's Facebook page. Is Mr Thimiri the CEO of QNet in India? If not, then who heads QNet in India and who are the top management people? In addition, we would like to know the relations, if any, between QNet, Vihaan Direct Selling India Pvt Ltd and Transview Enterprises Pvt Ltd."


Here is the reply we received from the PR agency of QNet India...

"This is apropos our telecon now a while back and in furtherance to our earlier discussion which took place on the 30 August 2013 with regards to our client QNET, referred by you in your email. On your request, we reached out to our client again today, but they were of the same considered view that since the matter is still sub-judice, they would not like to give any comments for the time being. We will be happy to reach out to you should our client decide to make any statement to the media in the future."





1 month ago


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 make sure to reach in time __/\__ . You can contact on 7498063701 in case of difficulty in locating us :)

Jai Hind.

jitu moni

1 month ago
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

2 months ago
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.

jitu moni

3 months ago
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 and 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

5 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

5 months ago
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.

jitu moni

6 months ago

QNet: Secret SFIO report says MLM, Ponzi schemes a threat to national security
Read article

jitu moni

6 months ago

Hello Everyone

The company Qnet is celebrating VCon from 3-7 May. As a present,yesterday late night, I posted lot of comments on numerous pics uploaded on Instagram. I also posted on VChief Pathmans account. Unfortunately, they kept deleting my posts and had to ultimately block me. If each one of us, Indians, takes to instagram and starts posting messages like me, then they would have to either block us or abandon their account, which is their money making tool. You can start with Qnetofficial,TheV, Pathmans account, etc with phrases like Pyramid Scheme, Qnetscam, Franchise Fraud, Police arrests, court cases,Cheating, etc. They cannot stop us if we all work as one unit.

Hope we all teach them a lesson and save other fellow Indians.

Jai Hind

jitu moni

6 months ago
CM Devendra Fadnavis has assured detailed inquiry into QNet: BJP
Chief minister Devendra Fadnavis has promised to make a detailed inquiry of the alleged irregularities by the QNet multilevel marketing company and take action against the offenders, said BJP spokesperson Madhav Bhandari on Saturday. Former union minister P. Chidambaram’s wife was a legal counsellor with the company.

The QNet company, which was earlier known as Goldquest, has cheated 12 lakh people to the tune of thousands of crores of rupees. The court has rejected anticipatory bail to the accused in this case. When the CM was contacted about this, he promised to make a detailed inquiry and take action. If necessary, he said that the CBI’s help would also be taken, said Mr Bhandari.

The party spokesperson demanded that the role of former Union minister P. Chidambaram and his wife needs to be probed in this case. “Mr Chidambaram’s wife was a legal counsellor of the concerned company. Taking note of complaint registered by a lawyer from Chennai, the Central Vigilance Department handed over the case to the CBI. The complaint also has a mention of former Union minister Shashi Tharoor. However, the CBI did not investigate the matter during the tenure of Congress government at the Centre,” he alleged.

In Maharashtra, the wife of Gurpreet Singh Anand had in 2013 filed a complaint of fraud against the company. However, there was not much inquiry during the Congress-NCP regime. But since the court has denied anticipatory bail to other accused, including sportsman Michael Ferreira, the investigation can be expedited. Many sensational things are expected to come out in the investigation as the CM has promised to carry out a detailed probe in the case, said Mr Bhandari.

jitu moni

6 months ago

Mumbai police seeks Zee business help in probe of QNet

jitu moni

6 months ago
A group of investors in the QNet multi-level market case on Sunday gathered near Holy Family Church and marched as a protest and public awarness against ponzi schemes. The protesetors reached at the house of accused Padma Bhushan Michael feriera in the QNet cheating case. The protesters were holding placards that read, Michel Ferriera Shame Shame! and Ban QNet".

"We chose Bandra for protest since most of the accused in this scam reside here. We had informed the police in advance and stated that the peaceful march will be for awareness about such fraud schemes and protest against such ponzi schemes," said Gurpreet Singh Anand, the first complainant in the QNet cheating case. He added that thgough it was his birthday but he did not spend time at home and was busy in the awareness drive.
Similar protests were held in New Delhi, Bangalore and Hyderabad on Sunday. Last month a special MPIDA court rejected the anticipatory bail plea of Michael Ferreira, winner of the World Amateur Billiards Championship and a Padma Bhushan recipient, and four others in the QNet case. They have approached the Bombay High Court for anticipatory bail. Ferreira, 77, and others had applied for

jitu moni

6 months ago
The economic offences wing of Mumbai police, probing the multicrore Qnet scam, has issued notices to Indian Super League (ISL) officials to gather details about taking sponsorship from the tainted company.
Qnet had made celebratory association as the official direct selling partner of Goa Football Club (FC Goa) throughout the Indian Super League 2015 season, from October to December. FC Goa is a part of the ISL football league tournament. Sources said the police are trying to find out the how the proceeds of crime of a company under serious investigation, have been used to sponsor the team. Police are also baffled as how the Qnet managed to generate money when its accounts have been seized. "We have sum moned ISL officials to understand the amount and flow of money in their sponsorship from the Qnet company which had defrauded several investors," said an official.

jitu moni

6 months ago

The fight against the Qnet scam wheré more than 7000 crores of rupees has been laundered out to foreign shores from India has just got bigger.

The Saradha Scam which started mainly in Bengal looks relatively smaller compared to the Qnet scam which had defrauded people across various cities like Mumbai,Delhi,Bangalore,Hyderabad etc for over a period of 10 years.

To unite and protest against this MLM scam plaguing India, all victims,activists, are requested that they gather outside Holy Family church,Hill Road,Bandra West at 10.30 A.M. tomorrow 24th April,2016.

Various press and media agencies will be present to cover the event meet and address grievances to authorities.

The current government has taken note of the Qnet scam and matter will be taken up at upcoming Parliament session.

All Indians are cordially invited to support the cause and join in the protest. We need to end the scam by spreading awareness and recover the money taken away by the scamsters.

A request to all to please forward this message on Facebook, twitter and WhatsApp groups... Jai Hind


7 months ago






Ground Floor, Annexe 2 Building
Police Commissioner Office
Crawford Market, Mumbai - 400001


Deputy Commissioner of Police
Economic Offences Wing
Delhi Police
Mandir Marg
New Delhi 110001


Cyber Crime Police Station,
CID Annexe Building, Carlton House,
# 1, Palace Road,
Bangalore - 560001.


Deputy Commissioner of Police(EOW)
Chennai Police
Economic Offences Wing CID
C 48, II- Avenue, TNHB, 3rd Floor,

Anna Nagar, Chennai-40.


Office of the Addl.Director General of Police,
Crime Investigation Department
Andra Pradesh at RBVRR Telangana State Police Academy,
Himayatsagar,Hyderabad-500091, Telangana State



7 months ago

Six persons have been arrested for allegedly running a marketing scam through the company Qnet.

According to the police, the company is engaged in a ‘chain link multilevel marketing’ scam. Persons were encouraged to pay Rs. 2,500 and join as ‘members’ with the promise of high commissions for getting more members into the organisation, said the police who received ‘numerous’ complaints. Over 100 people were ‘duped’ into joining, says a police release.

Members could offer ‘packages’ that cost between Rs. 40,000 and Rs. 3.75 lakh, and would get commissions up to 30 per cent for enticing others to avail these packages.

The Central Crime Branch, fraud and misappropriation squad, raided the company’s office at Byappanahalli on March 13 and arrested six persons. A release said Amit Soni (34), Ashok Sharma (33), Rakesh M. (33) – all from Mumbai – Nikunj Kumar (29), Avinash Shah (32) and Ankit Kandel (34) – all from Kolkata – were arrested.

However, a company spokespersons said the charges are ‘baseless’ and the operations – which includes networking – had been ‘misconstrued’ as a Ponzi scheme.

How the RBI can be made more accountable— Part 3

The Reserve Bank must tender accountability in order to claim and enjoy autonomy from the government. Scale notwithstanding, lobbying, as a strategy, is also debatable

Accountability and ethics are very crucial to the survival of the financial sector and there is no doubt that there has been a systemic breakdown in the accountability and ethics globally across the financial sector in the last few years, leading to various forms of economic crisis, the effects of which we are still experiencing today! As all of you would agree, the integrity and credibility of financial markets and peoples’ trust in these markets is of paramount importance to the economic health of countries and India is no exception to this basic dictum. And therefore, without any doubt, the stability, soundness, safety and sustained prosperity of India’s financial system and larger economy rely fundamentally on the notions of fairness, transparency and accountability.


That said, while businesses and individuals in the financial sector have every right to pursue profits, at the same time they also have an intrinsic duty to produce services of high quality and need to conduct themselves fairly and with a high degree of transparency and accountability. However, this change can happen in real time only if the central bank (the Reserve Bank of India-RBI), which is the primary regulator of the financial sector, starts to facilitate this process of metamorphosis, which is required NOW, more than ever before! In other words, unless the RBI becomes the change that it wants to see on the ground in the financial sector, I am afraid that there will be very little action on the ground in terms of accountability!


So, what needs to be done to help move the RBI to a more accountable entity, from a long term perspective? We discuss this briefly in this final article in the series on RBI’s accountability!


First, there is the issue of legal accountability. Like in many other countries (USA and elsewhere), this would require the governor of the RBI to depose on a quarterly or semi-annual basis before a select committee of Hon Parliament such as the Hon Parliamentary Standing Committee on Finance (PSCF). Ideally, this deposition should follow the policy pronouncements made by the RBI. Being an unelected individual with such huge powers, the RBI governor must clearly be subject to Parliamentary Accountability, apart from the existing mechanisms. This would also mean to suggest that the RBI governor should therefore, be appointed by a Parliamentary committee and also be capable of being removed by them, if the situation so demands!


And, as noted in the media, Dr Duvvuri Subbarao, former governor of RBI, has argued for the same and I quote him,


The Reserve Bank must tender accountability in order to claim and enjoy autonomy from the government ... We must be conscious to the fact that we are unelected officials. And our mandate is that the government has appointed us. In order to claim, demand autonomy from the government, and to enjoy that autonomy, we must remember that we must tender accountability ... Reserve Bank must take its accountability seriously if it wants to be knowledge institution. ...The governor should go before a select committee of the Parliament  ... Just like it happens in US, UK, where the governor goes and gives evidence before the committee. In India too, the governor must go and tender accountability to members of Parliament select committee. That will be a good practice,"i


Second, while Parliamentary accountability is crucial, it cannot however be a substitute for basic accountability of the RBI to the non-executive members of the RBI board—especially, from an operational perspective. Here, I would like to humbly state that, these board members must become serious and active players in the immediate accountability of the RBI and the governor—that is why they are in the RBI board in the first place.


Let us face it! The RBI is a great example of a central bank that has, by and large, individual centric decision making. Whether it is monetary policy or any other function, the governor unquestionably reigns supreme.  An added factor makes the respected governor omnipresent and omnipotent at the RBI—the high level of discretion currently available to himii (which I am not questioning here).


Given the above, my overall point is simple: subject the presently available huge discretionary decision making powers with the RBI governor to normal checks and balances (of good governance) so as to facilitate greater accountability in decision making! Put differently, make the governor answerable to the non-executive members of the board of the RBI. In fact, at this basic level, the non-executive members of the RBI board must make the governor and RBI accountable for the use of the countries’ (scarce) resources, performance of regulatory and supervisory functions and the consequences of their actions.


Thus, as at Bank of New Zealand, what is needed is a framework of accountable autonomy where the governor (along with his team) are the primary decision-makers at the central bank and the Board exclusively engages in a monitoring role, evaluating the performance of the central bank and governor.


Third, facilitate the transition from being an individual centric decision maker (that most RBI governor’s have tended to be) to one who uses the collection potential and wisdom of RBI’s deputy governor’s, executive directors and others. This model of central banking is certainly not without merits and must be tried before it is dismissed. More importantly, this would certainly call for the creation of an empowered monetary policy committee along with voting rights—an advisory committee would not do here as it fixes no responsibility at all. Of course, this would also require that clear mandates and objectives exist (for the RBI) along with inflation and other targets. To reiterate, there is considerable evidence globally from the experience of central banks to show that group based collective decision making has led to better results and actions on the ground for the economy as compared to highly individualistic decision making that most of  our RBI governor’s have tended to engage in!iii


Fourth, the RBI must not only be audited by independent external auditors but more importantly, it should also be subject to audit by the CAG (The Comptroller and Auditor General). Look at the example of Bundesbank (Germany), which is a much cited example of a central bank in Europe. It has been subject to both independent external audits as well as oversight by the supreme audit authority (federal court of auditors). I fail to understand the logic that the RBI is different and therefore needs no CAG oversight. In fact, Parliamentary (and legal) accountability will be enhanced significantly, if and only if the RBI is subject to a CAG audit!


Last but not the least, there is so much lobbying that happens by firms and individuals in the financial services industry, and especially with the regulator. The RBI must be more transparent on such lobbying. Without any doubt, the right to voice our concerns and interests, and thereby attempt to influence public policy, is fundamental to any democracy like India. Many stakeholders including individuals, businesses, industry associations, advocacy organisations and other stakeholders have this fundamental right. However, lobbying is, indeed facing a crisis of legitimacy (e.g., the Radia tapes have revealed a lot). It is also very big business, especially for those representing these companies and (sometimes, even) foreign countries. Even the normally passionate civil society lobbying, has started to acquire significant commercial dimensions, often galvanising support for an extraordinary range of objectives. Without any doubt, the sheer numbers of lobbyists and the huge resources at their command perhaps, even threaten to overwhelm and/or co-opt public (minded) officials and the RBI is no exception to this trend—in fact, there was said to be significant lobbying by industry associations and others before, during and after the 2010 AP micro-finance crisis.


Another issue is relevant here. Scale notwithstanding, lobbying, as a strategy, is also debatable for several reasons. Many a time, sadly, the spirit of law is not observed. Further, sometimes undue influence falls into too few hands, or into the hands of those with very narrow commercial interests—I have pointed out in the earlier articles the present case where a single person holds seven (I had thought just six) very high profile positions related to the RBI. And of course, not to sound like a broken record, there are conflicts of interests in the recent financial inclusion and banking selection advisory committees appointed by the RBI.


All of the above in short, show that there is an accountability deficit, especially concerning lobbying with the financial sector regulator. Concrete action is therefore needed to make such lobbying more transparent and accountable and here again the buck stops with the RBI in the financial sector and it must show a clear actionable way forward—so that it is not only becomes accountable but is also perceived to be accountable, by the people at large!

ii There has been no lady Governor to the best of my knowledge

iii Those of you who are interested in getting more information on this, may contact me at and I would be most happy to share whatever evidence I have on hand from global experiences


You may also want to read…

Should the RBI be made more accountable? —Part1

How the RBI can be made more accountable – Part 2


(Ramesh S Arunachalam has over two decades of strong grass-roots and institutional experience in rural finance, MSME development, agriculture and rural livelihood systems, rural and urban development and urban poverty alleviation across Asia, Africa, North America and Europe. He has worked with national and state governments and multilateral agencies. His book—Indian Microfinance, The Way Forward—is the first authentic compendium on the history of microfinance in India and its possible future.)





3 years ago

There is no doubt or no second opinion to the fact that RBI should be made more accountable. The question is accountable to whom? There is no doubt that Parliament is supreme in our democracy. But is it really true? This is the only country in the world which is of course claims to be largest democracy, where even exports are done to the tune of several crores illegally. Every one knows how exports are done and what are formalities involved in exporting a product. Even such a complicated process is done illegally. If any one digs up a road he will be arrested by police, but illegal mining is very common.
So Let RBI be accountable to their conscious. The democracy has almost became a mockery here.

Yerram Raju Behara

3 years ago

This is a very good articulation on the need for greater accountability of the regulator in the financial sector to the Parliament. In democracy like ours the Parliament also needs to mature to a degree to insist on regulatory impact assessment of every new enactment on the subjects of the law at the beginning of the financial year. The first three days after the formal inaugural day that has some compulsory agenda should be devoted to such exercise. This will improve the governance, transparency and accountability.

V Rajendran

3 years ago

Very well written. Not undermining the capability of RBI especially how it has steered India with no scratch in the aftermath of US financial crisis, European economic crisis etc, it is quite reasonable that there has to be some accountability on the part of RBI like reporting to Parliamentary panel etc. When RBI itself looks up to US and the UK on many principles like Basel Conventions (now Basel III), Risk Management, NPA Management, BC-DR Study etc and tries to adopt those in the Indian scenario, why does it not suggest an accountability structure also, as it exists in the US, UK and Germany. It is a commendable gesture that even D Subba Rao has suggested it. V Rajendran, Chennai

Supreme Court asks Centre, States to have fixed tenure for bureaucrats

The apex court said Parliament must enact a law to regulate postings, transfers and disciplinary action against bureaucrats

The Supreme Court on Thursday, while suggesting fixed tenure for bureaucrats to insulate them from political interference and frequent transfers said these officers should not act on verbal orders given by political bosses.


Suggesting sweeping reforms in the functioning of bureaucracy, a bench headed by Justice KS Radhakrishnan said Parliament must enact a law to regulate postings, transfers and disciplinary action against bureaucrats.


Holding that much of the deterioration in bureaucracy is because of political interference, it said that civil servants should not act on verbal orders given by political executives and all actions must be taken by them on the basis of written communication.


The bench also comprising Justice PC Ghose said giving a fixed minimum tenure to a civil servant will not only promote professionalism and efficiency, but also good governance.


It asked the Centre and all State governments along with Union Territories to issue directions within three months for providing fixed tenure to civil servants.


The bench also said Civil Services Board should be constituted at the Centre and State-levels.


The verdict, which is on the line of apex court’s earlier order on police reforms for giving fixed tenure to senior police officers in Prakash Singh case, will go a long way in giving freedom and independence to the functioning of bureaucracy.


The judgement comes close on the heels of controversies surrounding Ashok Khemka, IAS officer of Haryana cadre over DLF—Robert Vadra land deal, and Durga Sakhti Nagpal, UP cadre IAS officer, who was targeted by the State government for alleged misconduct.


The apex court passed the verdict on a public interest litigation (PIL) filed by 83 retired bureaucrats including former Cabinet Secretary TSR Subramanian seeking its directions for insulating bureaucracy from political interference.


The petitioners also include former Indian Ambassador to the US Abid Hussain, former Chief Election Commissioner N Gopalaswami, former Election Commissioner TS Krishna Murthy, former IPS officer Ved Prakash Marwah, and former CBI directors Joginder Singh and DR Kaarthikeyan.


“This is a landmark judgement. Public servants are not private servants,” said Subramanian.


“Today faith in our Constitution has been reaffirmed...our faith in the strength of democracy has been reaffirmed because the highest court of the land has recognised the problems,” he said, adding “malgovernance affected people and quality of administration”.


Krishna Murthy lauded the verdict, saying “Good governance is critical to good quality democracy.


“Most of us have seen in our career how most of the transfers, promotions, postings and foreign assignments, all of them are decided on whimsical basis very often,” he said.


Singh said, “I am happy over this judgement but having said that I am aware that similar judgement was passed by the Supreme Court on September 20, 2006 on fixed tenure of police officers but all states are dilly-dallying.”


The PIL had alleged that at present, the system of transfers, postings, promotions, disciplinary action and other personnel matters pertaining to the members of civil services are ad-hoc and non-transparent.


“There is an urgent need to make the civil servants accountable, sensitive and responsive. If this is achieved, there will be across-the-spectrum benefits...


“Transfers are often used as instruments of reward and punishment, with officials being frequently transferred on the whims and caprices as well as the personal needs of local politicians and other vested interests. Officers, especially those in the All India Services serving in state governments, have no stability or security of tenure,” it had said.


The PIL had also said the civil servants at all levels should be given a minimum three-year fixed tenure on each post to foster functional freedom and independence.


Any premature transfer should specifically be authorised by the ‘civil service board/commission’ on specific circumstances to be brought out in writing, it had said.


At least four high-powered panels made recommendations for freeing the bureaucracy from political interference but the government had not taken any concrete step for implementation of the reforms suggested by them, it had said.


“Change of government invariably leads to new rounds of transfers as the incoming group of political leaders seeks to reward supporters and put its “own” staff in key positions.


“Moreover, the ‘transfer industry’ is backed by entrenched and powerful vested interests as frequent transfers generate huge amounts of black money for corrupt officials and politicians...,” it had said.


The PIL had said that there should be an independent, high-powered and statutory ‘civil services board’ in each state which should process proposals of postings and transfers.




3 years ago

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