MALCKOM N DESAI Vs. GOVT OF NCT

JUDGEMENT

(1.) The present petition has been filed to seek quashing of FIR No. 87/2016 dated 10.06.2016 under Sections 420/120-B/34 Penal Code and Sections 4/5/6 of PC & MCSB Act, registered by EOW Delhi and the proceedings arising therefrom, and in the alternative, compound the offence as against the petitioners.

(2.) The case concerns ? what is claimed to be, a Multi-Level Marketing (MLM) Company called Vihaan Direct Selling Private Limited (hereinafter 'the Company'/'accused Company'), accused of cheating and fraud by running a money circulation scheme through an unauthorized and faulty business module. Petitioners No. 1 and 2 are current shareholders of the Company, while the Petitioner No. 3 and 4 are ex-directors of the Company.

(3.) The petitioners submit that the business carried on by the Company, in short, is that products of different kinds are allegedly sold through independent contractors known as "Independent Representatives" (IRs), who are enrolled as part of the company, allegedly, without collection of any deposit, fee or money for same. These IRs are given authority to deal with consumers and sell the products of the company to third parties. Depending upon the value of products sold and number of persons referred by such IRs who, in turn, buy products of the company, and also depending upon the value of products sold by the referred IRs, commission is paid to the IRs.