SIT, CCS Smash Thousands-Crore Qnet Scam
The police department constituted 25 teams to effectively carry out raids in three States
HYDERABAD: Special teams of the Central Crime Station (CCS) and Special Investigation Team (SIT) have cracked a massive cheating case involving illegal money circulation schemes promoted by Vihaan Direct Selling Pvt. Ltd., a self-styled franchisee of the QI group in India under the brand name QNet.
City police commissioner V.C. Sajjanar disclosed that 32 persons, including 11 women, were arrested in four cases during simultaneous raids across Telangana, Andhra Pradesh and Bengaluru, Karnataka. The inter-state operation involved 30 teams and led to the seizure of products and electronic equipment linked to the fraudulent multi-level marketing (MLM) scheme.
“The company invokes Ponzi and binary schemes, product-based packages, vacation offers and other illegal tactics. Many of the accused are IT employees, including former staff. We have examined 11 victims in four cases, who together lost nearly ₹75 lakh, and many more victims are yet to be examined,” Sajjanar said.
Investigations revealed that the group targeted software employees, unemployed youth and aspirants seeking part-time work, luring them with promises of high returns through e-commerce investments. Victims were taken to hotels in Hi-tech City, where they were told they could earn ₹3–4 crore within two years for investments of ₹5–10 lakh. The company concealed its identity initially, later misrepresenting product deliveries as gifts to divert funds into the MLM scheme.
Concrete evidence shows the group showcased product sales upfront while secretly promoting illegal money circulation schemes. The binary model required each member to recruit two others, creating an endless chain. Sajjanar cited a Supreme Court ruling in Kuriachan Chacko & Ors vs State of Kerala (July 10, 2008), which held such schemes to be a “mathematical impossibility.”
The commissioner cautioned the public against enrolling in or encouraging dubious MLM schemes. Under Section 3 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, participation and earnings from such schemes are punishable offences.
