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Gujarat High Court

Indus Viva Health Science Pvt. Ltd vs State Of Gujarat on 1 December, 2023

Author: Vaibhavi D. Nanavati

Bench: Vaibhavi D. Nanavati

                                                                                  NEUTRAL CITATION




     C/SCA/20118/2023                               ORDER DATED: 01/12/2023

                                                                                   undefined




       IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

        R/SPECIAL CIVIL APPLICATION NO. 20118 of 2023

===================================================
            INDUS VIVA HEALTH SCIENCE PVT. LTD.
                              Versus
                      STATE OF GUJARAT
===================================================
Appearance:
MR. RONITH JOY(9560) for the Petitioner(s) No. 1
for the Respondent(s) No. 2,3,4,5
MS. SHRUTI PATHAK, AGP for the Respondent(s) No. 1
===================================================

 CORAM:HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI

                           Date : 01/12/2023

                              ORAL ORDER

1. By way of the present petition, the petitioner herein has prayed for the following reliefs:

"(i) It is, therefore, respectfully prayed that a writ in the nature of mandamus be issued directing the respondents to implement Rule 11 of the Consumer Protection (Direct Selling) Rules 2021 and thereby set up a mechanism in the State of Gujarat to monitor, supervise and regulate the business and the activities of direct seller and direct selling entities like the Petitioner herein;
(ii) The respondents and Respondent No.1 in particular be directed to take appropriate legal action on the representation dated 25.05.2023 (P10) addressed by the petitioner to the respondents and to decide the same immediately without any further delay;
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NEUTRAL CITATION C/SCA/20118/2023 ORDER DATED: 01/12/2023 undefined

(iii) During the pendency and till the final disposal of this Petition, be pleased to grant ad-interim relief in terms of para 9(ii) hereinabove and be further pleased to direct the Respondent No.4 not to harass the petitioner at the instance of frivolous complaints and adhere to the rules of the Consumer Protection (Direct Selling) Rules 2021;

(iv) Be pleased to issue a writ/direction to respondent no. 4 not to harass the petitioner at the instance of frivolous complaints and adhere to the rules of the Consumer Protection (Direct Selling) Rules 2021;

(v) Pass such further or other order(s), as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case and in the interest of justice."

2. Heard Mr. Ronith Joy, learned advocate appearing for the petitioner and Ms. Shruti Pathak, learned Assistant Government Pleader appearing for the respondent- State.

3. The petitioner company is a Ayurvedic health promoter of products such as iPulse, iGlow, islim, iCoffee, etc. and has a valid license from the Department of Ayush, Bangalore for manufacturing the same. The petitioner Company is running operations successfully since 2014 in India and the United State of America. The petitioner Company is a Direct Selling Entity, which is separate and distinct from Pyramid and other ponzi like schemes as has been notified by the Ministry of Consumer Page 2 of 5 Downloaded on : Wed Dec 06 20:35:31 IST 2023 NEUTRAL CITATION C/SCA/20118/2023 ORDER DATED: 01/12/2023 undefined Affairs, Department of Consumer Affairs, Food & Civil Supplies by way of the 'Model Guidelines on Direct Selling' vide Office Memorandum dated 09.09.2016 bearing No. F21/18/2014-IT (Vol- II). The Ministry of Consumer Affairs, Food & Public Distribution Vide F.No.21/18/2014-IT (Vol-II) issued Direct Selling Guidelines, 2016, as guiding principles for the State Governments to regulate the business of Direct Selling and Multi-Level Marketing (MLM) and further strengthen the existing the regulating mechanism on Direct Selling and MLM for preventing fraud and protecting the legitimate rights and interests of consumers.

4. The Ministry of Consumer Affairs, Food and Public Distribution, in exercise of powers conferred by clause (zg) of sub-section (2) of Section 101 r/w. Section 94 of the Consumer Protection Act, 2019, issued Notification dated 28.12.2021, for regulating the Direct Selling Market. For ensuring compliance of these rules by Direct Selling Entity and direct sellers, every State Government shall set up a mechanism to monitor or supervise the activities of direct sellers and Direct Selling Entity. Page 3 of 5 Downloaded on : Wed Dec 06 20:35:31 IST 2023

NEUTRAL CITATION C/SCA/20118/2023 ORDER DATED: 01/12/2023 undefined

5. The petitioner approached this Court by preferring Special Civil Application No. 11189 of 2022 with multiple prayers, which came to be withdrawn, by order dated 23.06.2022 with a liberty to pursue the representation dated 01.07.2019.

6. The petitioner submitted representation dated 25.05.2023 (pg.92) to the Director Department of Food Civil Supplies and Consumer Affairs to comply with the Model Guidelines and the Direct Selling Rules, 2021 and specifically to appoint a nodal officer. However, no action has been taken by the respondents, till today.

7. In light of the aforesaid facts, the petitioner preferred the present petition with the reliefs, as stated herein-above.

8. Mr. Ronith Joy, learned advocate appearing for the petitioner limited the prayer to decide the representation dated 25.05.2023 (Pg.92).

9. In light of the aforesaid, without entering into the merits of the matter, the present Petition is disposed of, with a direction that the representation dated 25.05.2023 duly produced Page 4 of 5 Downloaded on : Wed Dec 06 20:35:31 IST 2023 NEUTRAL CITATION C/SCA/20118/2023 ORDER DATED: 01/12/2023 undefined at Page-92, be decided by the respondent authority, as expeditiously as possible, preferably within a period of six weeks from the date of the receipt of the order.

10. With the aforesaid directions, the present Petition stands disposed of, at this stage.

Direct service is permitted.

(VAIBHAVI D. NANAVATI,J) Pradhyuman Page 5 of 5 Downloaded on : Wed Dec 06 20:35:31 IST 2023