Hyderabad Police arrest 5 in Goa in QNET scam
Hyderabad Police arrested five people at a Goa resort over alleged QNET-linked fraud. The case has widened scrutiny of MLM schemes targeting jobseekers and young investors.
Hyderabad Police have arrested five people from a resort in Goa for their alleged links to QNET, a company the police said was involved in illegal multi-level marketing, money-circulation and pyramid schemes. The arrests followed a complaint of a multi-lakh fraud, and police said three luxury vehicles and key digital evidence were seized.
The accused, all from Kerala, were caught while attending a company event in Candolim in North Goa, according to a release from Hyderabad Police. Officials said the action was taken as part of an investigation into a complaint by a man who alleged that he was lured with the promise of a lucrative business opportunity and then pressured to invest money.
Police said the complainant told them on July 16 that he had been looking for gym space in Hyderabad and Bengaluru when one of the accused contacted him through a social media platform. He was allegedly persuaded to travel to Bengaluru on July 9 on the pretext of discussing a business opportunity.
According to the police, the accused and his team introduced him to QNET, also known as Vihaan Direct Selling India Pvt Ltd, and presented it as a legitimate luxury goods business linked to the QI Group. The complainant alleged that fabricated success stories, video presentations, peer pressure and misleading claims were used to persuade him to invest Rs 7.50 lakh.
Police said the complainant was further 'pressurised' to immediately pay Rs 30,000 as a booking amount to secure a place in the business and gain entry to an upcoming leadership event in Goa. Believing the claims made to him, he transferred the money to the bank account of the accused who had recruited him into the scheme.
The complainant also alleged that the accused avoided written communication and insisted on phone calls and online meetings. He further claimed that he was told to keep the business proposal secret.
After a case was registered, investigators received information that several accused persons and representatives associated with QNET and Vihaan Direct Selling India Pvt Ltd would be attending an event in Candolim. A special police team then went to Goa and arrested five accused on July 18, the release said.
After legal formalities were completed, the accused were produced before the Judicial Magistrate First Class in Mapusa, Goa, who granted a transit warrant for their transfer to Hyderabad for further investigation. Police said efforts were on to arrest the remaining absconding accused and identify others linked to the alleged illegal activities.
In a public advisory, Hyderabad Police cautioned people against participating in, investing in, promoting or recruiting members for QNET or similar MLM, pyramid or money-circulation schemes. The police said such entities promise unrealistically high returns and passive income and mainly target IT employees, unemployed youth, homemakers and students.
They added that anyone who knowingly or unknowingly joins, promotes, hosts events for, or collects money for such schemes can face criminal prosecution under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Police also said cases had earlier been registered against Vihaan Direct Selling Pvt Ltd, formerly known as Gold Quest and Quest Net, the India arm of the Hong Kong-based QI Group, which marketed under the brand name QNET.
The case centres on allegations that the complainant was drawn into an illegal investment scheme through false promises, after which Hyderabad Police tracked down five accused at a Goa event and began wider action against others linked to the operation.
Hyderabad Police have arrested five people from a resort in Goa for their alleged links to QNET, a company the police said was involved in illegal multi-level marketing, money-circulation and pyramid schemes. The arrests followed a complaint of a multi-lakh fraud, and police said three luxury vehicles and key digital evidence were seized.
The accused, all from Kerala, were caught while attending a company event in Candolim in North Goa, according to a release from Hyderabad Police. Officials said the action was taken as part of an investigation into a complaint by a man who alleged that he was lured with the promise of a lucrative business opportunity and then pressured to invest money.
Police said the complainant told them on July 16 that he had been looking for gym space in Hyderabad and Bengaluru when one of the accused contacted him through a social media platform. He was allegedly persuaded to travel to Bengaluru on July 9 on the pretext of discussing a business opportunity.
According to the police, the accused and his team introduced him to QNET, also known as Vihaan Direct Selling India Pvt Ltd, and presented it as a legitimate luxury goods business linked to the QI Group. The complainant alleged that fabricated success stories, video presentations, peer pressure and misleading claims were used to persuade him to invest Rs 7.50 lakh.
Police said the complainant was further 'pressurised' to immediately pay Rs 30,000 as a booking amount to secure a place in the business and gain entry to an upcoming leadership event in Goa. Believing the claims made to him, he transferred the money to the bank account of the accused who had recruited him into the scheme.
The complainant also alleged that the accused avoided written communication and insisted on phone calls and online meetings. He further claimed that he was told to keep the business proposal secret.
After a case was registered, investigators received information that several accused persons and representatives associated with QNET and Vihaan Direct Selling India Pvt Ltd would be attending an event in Candolim. A special police team then went to Goa and arrested five accused on July 18, the release said.
After legal formalities were completed, the accused were produced before the Judicial Magistrate First Class in Mapusa, Goa, who granted a transit warrant for their transfer to Hyderabad for further investigation. Police said efforts were on to arrest the remaining absconding accused and identify others linked to the alleged illegal activities.
In a public advisory, Hyderabad Police cautioned people against participating in, investing in, promoting or recruiting members for QNET or similar MLM, pyramid or money-circulation schemes. The police said such entities promise unrealistically high returns and passive income and mainly target IT employees, unemployed youth, homemakers and students.
They added that anyone who knowingly or unknowingly joins, promotes, hosts events for, or collects money for such schemes can face criminal prosecution under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Police also said cases had earlier been registered against Vihaan Direct Selling Pvt Ltd, formerly known as Gold Quest and Quest Net, the India arm of the Hong Kong-based QI Group, which marketed under the brand name QNET.
The case centres on allegations that the complainant was drawn into an illegal investment scheme through false promises, after which Hyderabad Police tracked down five accused at a Goa event and began wider action against others linked to the operation.
Hyderabad Police have arrested five people from a resort in Goa for their alleged links to QNET, a company the police said was involved in illegal multi-level marketing, money-circulation and pyramid schemes. The arrests followed a complaint of a multi-lakh fraud, and police said three luxury vehicles and key digital evidence were seized.
The accused, all from Kerala, were caught while attending a company event in Candolim in North Goa, according to a release from Hyderabad Police. Officials said the action was taken as part of an investigation into a complaint by a man who alleged that he was lured with the promise of a lucrative business opportunity and then pressured to invest money.
Police said the complainant told them on July 16 that he had been looking for gym space in Hyderabad and Bengaluru when one of the accused contacted him through a social media platform. He was allegedly persuaded to travel to Bengaluru on July 9 on the pretext of discussing a business opportunity.
According to the police, the accused and his team introduced him to QNET, also known as Vihaan Direct Selling India Pvt Ltd, and presented it as a legitimate luxury goods business linked to the QI Group. The complainant alleged that fabricated success stories, video presentations, peer pressure and misleading claims were used to persuade him to invest Rs 7.50 lakh.
Police said the complainant was further 'pressurised' to immediately pay Rs 30,000 as a booking amount to secure a place in the business and gain entry to an upcoming leadership event in Goa. Believing the claims made to him, he transferred the money to the bank account of the accused who had recruited him into the scheme.
The complainant also alleged that the accused avoided written communication and insisted on phone calls and online meetings. He further claimed that he was told to keep the business proposal secret.
After a case was registered, investigators received information that several accused persons and representatives associated with QNET and Vihaan Direct Selling India Pvt Ltd would be attending an event in Candolim. A special police team then went to Goa and arrested five accused on July 18, the release said.
After legal formalities were completed, the accused were produced before the Judicial Magistrate First Class in Mapusa, Goa, who granted a transit warrant for their transfer to Hyderabad for further investigation. Police said efforts were on to arrest the remaining absconding accused and identify others linked to the alleged illegal activities.
In a public advisory, Hyderabad Police cautioned people against participating in, investing in, promoting or recruiting members for QNET or similar MLM, pyramid or money-circulation schemes. The police said such entities promise unrealistically high returns and passive income and mainly target IT employees, unemployed youth, homemakers and students.
They added that anyone who knowingly or unknowingly joins, promotes, hosts events for, or collects money for such schemes can face criminal prosecution under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Police also said cases had earlier been registered against Vihaan Direct Selling Pvt Ltd, formerly known as Gold Quest and Quest Net, the India arm of the Hong Kong-based QI Group, which marketed under the brand name QNET.
The case centres on allegations that the complainant was drawn into an illegal investment scheme through false promises, after which Hyderabad Police tracked down five accused at a Goa event and began wider action against others linked to the operation.
