HYDERABAD: Hyderabad police arrested 32 persons, including 11 women, in connection with a QNet-linked cheating and illegal money circulation racket involving thousands of crores across the country.
City police commissioner VC Sajjanar said on Monday that the arrests were made in four cases following simultaneous interstate raids at around 30 locations across Telangana, Andhra Pradesh and Karnataka. Those held include group leaders, motivators, independent representatives and loan agents.
The racket is linked to Vihaan Direct Selling Pvt Ltd, a self-styled franchisee of the Hong Kong-based QI Group operating in India under the QNet brand. The Central Crime Station (CCS) formed 30 special teams to carry out the operation. Most of the accused are IT and former IT employees, allegedly involved in promoting, recruiting and training members.
Police said the firm, earlier known as Gold Quest and Quest Net, has been operating since 1998 and allegedly targeted software professionals, businessmen, housewives and unemployed youth with promises of part-time income and high returns.
Victims were reportedly invited to hotels and cafes in the Hitec City area, where investment plans were explained without disclosing the company’s identity or the MLM structure. They were promised returns of Rs 3 crore to Rs 4 crore within two years for investments ranging from Rs 5 lakh to Rs 10 lakh.
In several cases, products were delivered to investors as ‘gifts’, while their money was diverted towards product purchases under the scheme without their knowledge. Victims were also made to sign bond papers stating voluntary participation before being inducted.
Based on complaints from over 68 victims in Telangana, including 22 from Hyderabad, police registered cases and launched the crackdown.
Sajjanar said a victim from Siddipet, who lost `5 lakh, died by suicide in October last year, leaving behind a note stating that the company’s claims were misleading. He added that some victims later began similar schemes locally to recover their losses.
He further said that those unable to invest were arranged private loans by the network, after which large sums were collected from them. So far, police have examined 11 victims who together lost nearly Rs 75 lakh. Officials said more victims are yet to be identified, and efforts are on to nab other absconding accused.