QNET in India: Understanding the Local Business Alliance

When QNET required a local franchisee to navigate India’s complex direct selling regulations, Dilip Raj Pukkella and Muhammed Imthiaaz established Vihaan Direct Selling (India) Private Limited in October 2011. The Bangalore-based company became QNET’s sub-franchisee, bridging the gap between the Hong Kong-headquartered wellness company and one of the world’s most challenging yet promising direct selling markets.

More than a decade later, their partnership has weathered court battles and regulatory changes. Vihaan now manages operations for approximately 600,000 registered QNET distributors across India, making it one of the country’s largest direct selling networks. The alliance shows how foreign companies can build sustainable businesses in India’s complex regulatory environment—but success demands patience, local expertise, and constant adaptation.

Direct Selling in India

QNET chose the franchisee route rather than attempting direct operations in India. Foreign direct selling companies face complex regulatory requirements that create significant operational challenges. India’s Consumer Protection (Direct Selling) Rules 2021 impose comprehensive compliance obligations including mandatory registration, grievance redressal mechanisms, and data localization requirements

State governments must establish monitoring systems for direct selling entities, creating varying compliance requirements across different jurisdictions. The regulatory environment shifted with the 2021 rules replacing previous 2016 guidelines, specifically designed to distinguish legitimate direct selling from pyramid schemes.

To meet these guidelines Vihaan serves as QNET’s local compliance and operations partner, handling the regulatory requirements that foreign companies must navigate in India’s complex direct selling environment.

Who is QNET’s Partner in India?

Vihaan Direct Selling (India) Pvt. Ltd. is QNET’s exclusive Indian partner. Founded in 2011 under the Companies Act, Vihaan operates with a valid Corporate Identification Number and Supreme Court protection granted in 2017.

India’s economic growth has created demand for wellness and lifestyle products, and QNET is partnering with Vihaan to meet that demand

Direct selling companies in India now must register properly, establish customer complaint systems, and maintain transparent business practices. What seemed burdensome to some companies helped legitimate players like Vihaan by distinguishing them from fly-by-night operations.

“Our business model is built on the belief that everyone, regardless of their background deserves a chance to succeed,” said Trevor Kuna, chief marketing officer at QNET. “With comprehensive products, business training, robust customer support systems and a fair compensation plan. We are committed to empowering the entrepreneurial journey of people.”

Vihaan’s operations focus on local manufacturing partnerships and regulatory compliance. More than 75% of products sold through Vihaan are made in India, supporting local manufacturing while keeping costs competitive.

Quality control teams conduct inspections and testing to ensure products meet both QNET’s global standards and local regulatory requirements. Products receive certifications from agencies like FSSAI and Ayush, with guarantees or manufacturer warranties provided for consumer protection.

This local manufacturing approach allows Vihaan to serve as QNET’s compliance and operations partner while contributing to India’s manufacturing sector.

Legal Developments Shape Business Environment

January 2025 brought vindication for Vihaan when Bangalore’s City Civil Sessions Court issued a restraining order against a news portal publishing allegedly defamatory content. The court directed immediate removal of articles spreading “misinformation” about Vihaan’s business practices.

The Supreme Court’s 2017 stay order on police cases against Vihaan provided crucial breathing room. Karnataka High Court ruled that Vihaan’s activities fall outside pyramid scheme prohibitions. Most recently, National Company Law Tribunal proceedings that questioned the company’s operations concluded as “disposed of as withdrawn” without requiring business changes.

These legal victories matter because they establish precedents for other direct selling companies navigating India’s regulatory environment. Courts have distinguished between legitimate product-based businesses and fraudulent recruitment schemes, creating clearer guidelines for companies and consumers.

Legal clarity has helped the broader direct selling industry gain respectability in India. Government recognition of legitimate direct selling as distinct from pyramid schemes opens doors for companies that play by the rules while making it harder for fraudulent operations to hide behind regulatory confusion.

Industry Growth

India’s direct selling industry has expanded over the past decade, with companies competing for distributors and customers. Vihaan’s position reflects both QNET’s international reputation and the local expertise that makes foreign partnerships successful.

Consumer attitudes toward direct selling have shifted as people become more familiar with legitimate companies and regulatory protections improve. Urban professionals appreciate flexible income opportunities that don’t require traditional employment commitments. Rural communities value access to products that might not reach them through conventional retail channels.

Digital transformation accelerated during the pandemic as distributors learned to build businesses through social media and video calls rather than face-to-face meetings. Vihaan’s technology infrastructure supported this transition while maintaining compliance with evolving regulations.

Industry associations have welcomed clearer regulations that separate legitimate businesses from fraudulent schemes. Regulatory clarity helps companies like Vihaan compete on product quality and business opportunity rather than spending energy defending their basic legitimacy.

The partnership between QNET and Vihaan offers lessons for other international companies considering India’s complex but potentially rewarding market. Success requires genuine local expertise, patience with regulatory complexity, and commitment to building long-term relationships rather than seeking quick profits. Companies that get these elements right can build sustainable businesses that benefit international brands, local partners, and the millions of Indians seeking entrepreneurial opportunities.

Find a Home-Based Business to Start-Up >>> Hundreds of Business Listings.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}