Hyderabad, March 23 Hyderabad Police on Monday arrested 32 accused during simultaneous raids in Telangana, Andhra Pradesh and Karnataka in four cases relating to Q-Net/ Vihaan direct selling multi-level marketing scam.
Hyderabad Police Commissioner V. C. Sajjanar told a news conference on Monday that the arrests were made by 30 special teams from the Central Crime Station (CCS) of the
Hyderabad City Police conducted simultaneous lightning raids in various parts of Telangana, Andhra Pradesh and Bengaluru, Karnataka.
He said 32 persons, including 11 women, were arrested who are playing different roles in promoters’ recruitment and training in this fraudulent MLM scheme/business.
Most of these accused persons are IT employees, including some former IT employees.
According to him, this is a case of large-scale cheating to the tune of thousands of crores throughout the country and promotion of illegal money circulation scheme by the Vihaan Direct Selling Pvt Ltd, a self-styled franchisee of QI Group in India under the brand name of Q Net.
Four cases were registered against Vihaan Direct Selling Pvt Ltd (Q Net) at CCS, Detective Department, Hyderabad.
Vihaan Direct Selling Pvt Ltd, formerly known as Gold Quest, Quest Net, is a Hong Kong-based multi-level marketing (MLM) company owned by the QI Group.
The company targets software employees, businessmen, housewives and part-time employment seekers.
According to police, this group is targeting software employees and unemployed youth in the name of part-time employment and attracting people in the name of E-Commerce business, offering high-return investment opportunities. The selected persons were taken to hotels at Hitech City and explained the investment plan without disclosing the name of the company, and informed them that they would get 3 to 4 crores within two years for five to ten-lakh-rupee investment. Initially, they do not reveal the name of Q-net Company, MLM or binary method.
When a person receives some products at his or her house, they misrepresent in some cases that it is the gifts from the company to continue in the scheme, and thus they divert the investment amount to purchase the products in the MLM scheme without their consent and knowledge, Sajjanar explained.
The company invokes many Ponzi schemes and Binary Schemes, product-based, vacation packages, etc., business tactics which are illegal, the Commissioner said.
The police have so far examined 11 victims in four cases. They lost nearly Rs 75 lakh. Many more victims are yet to be examined.
Efforts are being continued for apprehending the absconding accused persons involved in this fraud network, the Commissioner added.
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