HYDERABAD: In the wake of the fire that claimed the lives of six persons employed with Hong Kong-based QNet, managing director of the Telangana State Road Transport Corporation (TSRTC), VC Sajjannar, who had investigated the firm in 2019 during his stint as the Cyberabad commissioner of police, on Saturday, demanded suo moto legal action against the company. He also termed the activities of the multi-level marketing (MLM) firm as illegal.
Taking to Twitter, Sajjannar demanded that law enforcement agencies take suo moto legal action against QNet to prevent further crimes. “Law enforcement agencies also need to have surveillance over the activities of such fraudulent MLM companies and take suo moto legal action to prevent further crimes. My stand is very firm. QNet is illegal (sic),” he said.
It must be noted that the six persons — Shiva, Prashant, Pramila, Shravani, Vennela and Triveni — killed in the Swapnalok Complex fire that broke out on Thursday worked with QNet, which has been on the radar of law enforcement authorities and central agencies for alleged fraud involvement since 2019. Apart from Cyberabad police, Enforcement Directorate (ED) and Income Tax (I-T) officials had registered cases against the firm for defrauding individuals to the tune of hundreds of crores of rupees in 2019. The Secunderabad branch of the firm operated from the fifth floor of the Swapnalok Complex.
‘Victims had deposited over Rs 1.5 lakh to join QNet’
Family members of the deceased stated that the victims had paid Rs 1.5 lakh to Rs 3 lakh to join the company. They added that the firm employed youngsters to attract investors. It must be noted that MLM is banned in India under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
In 2019, a techie died by suicide after losing a large sum of money to QNet that he had deposited as investments. Subsequently, Cyberabad police, with VC Sajjanar at the helm at that time, unearthed the scam. Subsequently, the ED and I-T swung into action as well. At least 38 cases were registered against the Hong-Kong based firm between January 2019 and August 2019, leading to the arrest of more than 70 people connected to QNet.
Meanwhile, Mahankali police have registered a case against Swapnalok Complex and QNet under Sections 304 Part-II (punishment for culpable homicide not amounting to murder), 324 (voluntarily causing hurt by dangerous weapons or means), 420 (cheating) of the Indian Penal Code (IPC), and Section 9 (b) of the Explosives Act, 1884.