Hyderabad, March 24: The Hyderabad police have made significant strides in the ongoing investigation into the QNet/Vihang Direct Selling multi-level marketing scam. On Monday, they arrested 32 individuals linked to four cases related to this fraudulent scheme during coordinated raids across Telangana, Andhra Pradesh, and Karnataka.
Hyderabad Police Commissioner V.C. Sajjanar announced the arrests at a press conference. He revealed that 30 specialized teams from the Central Crime Station (CCS) conducted the operations in various locations, including Bengaluru.
Among those arrested, 11 are women. All suspects played different roles in recruiting and training promoters for this deceptive MLM scheme. Most of the accused are IT professionals, including some former employees. Authorities believe this scam involves a massive fraud amounting to thousands of crores of rupees nationwide. The company at the center of this controversy, Vihang Direct Selling Private Limited, promoted an illegal money circulation scheme under the guise of a legitimate business. It operates under the QNet brand, claiming to be a franchise of the QI Group in India.
Four cases have been registered against Vihang Direct Selling Private Limited at the CCS Detective Department in Hyderabad. Previously known as Gold Quest and Quest Net, this Hong Kong-based MLM company targets software employees, businesspersons, housewives, and part-time job seekers.
According to police, the group lures software professionals and unemployed youth under the pretext of part-time job opportunities. They also entice individuals with promises of high returns on investments in e-commerce ventures. Selected individuals are taken to hotels in Hi-Tech City, where they are introduced to investment plans without revealing the company’s name. They are told that investing between five to ten lakh rupees could yield returns of three to four crore rupees within two years, without initially mentioning QNet, MLM, or binary methods.
Commissioner Sajjanar noted that in some cases, when products are delivered to individuals’ homes, they are misled into believing these items are gifts from the company to remain in the scheme. This allows the company to use their investment amounts to purchase products for the MLM scheme without their consent or knowledge.
The company employs various illegal business tactics, including Ponzi schemes, binary schemes, product-based schemes, and vacation packages. So far, police have recorded statements from 11 victims who reported losses totaling approximately 75 lakh rupees. Investigations into additional victims are ongoing. The Commissioner added that efforts to apprehend the absconding suspects involved in this fraudulent network are still underway.
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P.S.K.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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