Cyberabad police bust another QNet related scam

Baki Srinivas Reddy (28), a BSc computers graduate, started a firm similar to QNet after he lost his `13 lakh investment in QNET.

Published: 12th September 2019 06:25 AM  |   Last Updated: 12th September 2019 06:25 AM   |  A+A-

Online scam, Online trap

Representational image. (Express Illustration)

By Express News Service

HYDERABAD: A former QNet, Multi-Level Marketing (MLM) company, member has been arrested by Cyberabad police for committing a similar offence by establishing a company under the name of ‘SERFA Marketing Pvt Ltd’ in Visakhapatnam on Wednesday. The Kukatpally Police unearthed the scam based on a complaint filed by a housewife.

Baki Srinivas Reddy (28), a BSc computers graduate, started a firm similar to QNet after he lost his `13 lakh investment in QNET. He registered his company with Registrar of Companies at Vijayawada. Interestingly, the accused followed the same tactics as QNet such as providing tour packages, watches, dietary products, beauty products, suit lengths, etc.

The accused designed the scheme in a pyramid structure, where every member is supposed to add new members on the right and left the side of the tree. One had to pay `12,000 to become a member. They would get `4,000 for introducing new members. Everyone in the tree would get 10 per cent commission on each new entrant.

“Though the fraudsters operated from Visakhapatnam, their main target was Hyderabad. They also have an office in Kukatpally. Out of about 5,000 members, they have 3,267 members in Telangana,” police said. The scheme became rampant in 16 states including Telangana, Andhra Pradesh, and two union territories in less than a year. 

Stay up to date on all the latest Hyderabad news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp