There is no straight way to answer this question. Inorder to understand QNet's position in India we need to understand a bit of its background. QNet operation started in India through their franchise called Vihaan Direct Selling (India) Pvt Ltd and that time the laws on MLM were not clear. Mostly direct selling are laws are governed by the State Government and not by the Central Government. However, this menance of so called ponzi scheme reached to a boiling point where in the Central Government had issued guidelines for the Direct Selling Industry in India. Apart from this, recently many State Government have also taken proactive steps by enacting Direct Selling Guidelines and Laws. Government of India's Consumer Affair ministy has also initiated prosecution against M/s Vihaan Direct Selling (India) Pvt. Ltd. under section 27 6B & 279(2) of the Income Tax Act, 1961; Read Here: Public Notice Over the years Qnet has been the center of many controversies, the most damaging being the alligation by Gurupreet Singh Anand.