QNet: SEBI asks victims to file complaints in EOW under PCMCS Act
Moneylife Digital Team 26 December 2016
Market regulator Securities and Exchange Board of India (SEBI) has advised victims of multi-level marketing (MLM) QNet and its franchisee Vihaan Direct Selling India Pvt Ltd to the Economic Offences Wing (EOW) of Police having jurisdiction. 
 
SEBI said its Bengaluru local office is regularly receiving complaints against activities carried on by QNET and Vihaan Direct Selling. "SEBI has noted that activities of QNet and VDSIL against which complaints are being received are akin to MLM activities and therefore, the same are being forwarded to state government and the EOW of Karnataka, having jurisdiction to implement provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 governing MLM activities in the nature of money circulation schemes, for further action as they deem fit," it said.
 
The Prize Chits and Money Circulation Schemes (Banning) Act empowers respective state governments and local police authorities to take action against MLM activities in the nature of money circulation schemes carried out in their territorial jurisdiction.
 
QNet, in response to the SEBI directive, has alleged that vested interests have been writing to market regulator to create an impression of wrong doing. "QNet has been under investigation based on a false complaint. The investigations have been on for the past three years and till date no charge sheet has been filed. This follows the mis-information campaign launched against QNet and its associates by vested interest groups who are arm-twisting and destroying a legitimate business operation. QNet and its associates are facing several criminal complaints filed by individuals motivated by these interest groups and our business is under investigation by police department. However till date no reports have found or even remotely indicated any involvement of either QNet or its associates being involved in any activities not permitted under law in the last 16 years of its operations in India," the statement says.
 
Earlier in September 2016, the Bombay High Court had asked five prime accused, including former world champion of billiards Michael Ferreira, to surrender as per the directions passed by the Supreme Court in the multi-crore QNet scam case. The HC was hearing a bunch of writ petitions filed by these five accused. 
 
The Bombay HC in May 2016 had also rejected bail plea of these five associates of QNet. While rejecting anticipatory bail applications of five accused the HC had observed that "the deceit and fraud is camouflaged under the name of e-marketing and business". This scheme is undoubtedly a MLM activity and a pyramid structure of such scheme is prepared so that the members are promised to get money on purchase and sale of products, the Court had said.
 
In a hard-hitting order on 6 May 2016, Justice Mridula Bhatkar said, "The motto of the company 'sell more, earn more' appears very attractive and innocuous. However, this motto is fully camouflaged. The company stands on a basic statement that people can be fooled. Thus, the true motto is 'sell more earn more' by fooling people. In fact, it is a chain where a person is fooled and then he is trained to fool others to earn money. For that purpose, workshops are conducted where study and business material is provided with a jugglery of words, promises and dreams. Thus, the deceit and fraud is camouflaged under the name of e-­marketing and business."
 
"It has very grave and serious impact on the economic status and mental health of the people on a large scale. On considering parameters of section 438 of the Code of Criminal Procedure, I am not inclined to protect the accused. It won't be out of place to mention that such circulation is required to be stopped. It is necessary for the prosecution to take injunctive steps against this business activity, which is prima facie, illegal. Though by stopping this business, a large group of people may get financially affected, however, it will save larger groups of people from becoming prey of this activity," the Bombay HC said. 
 
The HC then rejected bail applications of five including, Srinivas Rao Vanka and Magaral Veervalli Balaji, both directors of Vihaan Direct Selling, Suresh Thimiri, director of Transview Enterprises India Pvt Ltd, Malcolm Nozer Desai, who is a 20% stakeholder in Vihaan and Michael Joseph Ferreira, former world champion of billiards and an 80% stakeholder in Vihaan.
 
Gurupreet Singh Anand, a computer consultant from Lokhandawala, Andheri in his first information report (FIR) stated that his wife was duped for Rs30,000 by some people who had introduced themselves as the independent representatives (IRs) of QNet.
 
Comments
Mitul Maity
6 months ago

I am Mitul from Kolkata my ID is 732447
My ex colleague Aniruddha Patra (Mobile : 9836143188) invited me for this business and I invested around Indian rupees 50000 to join the business in August 2020. I transferred amount to Aniruddha Patra and not to Qnet, I was not knowing about the type of work. I trusted my friend and invested, later i got to know about type of work and realised its completely fraud, when i asked to return my money they told they purchased products worth 50000 in qnet, which I didn't use or have any knowledgehow to use (Trip Saver pack )and avail refund kindly help me in this process, and they have purchased for 50,000 .  How I can return this pack and get refund. Rest they r not showing proof of purchase nor giving money, kindly help me in getting refund from Aniruddha Patra (9836143188).
Regards
Mitul Kumar Maity
vismita.dani
1 year ago
I am Vismita from Delhi my ID is 303709
My husband's colleague Pratibha Rathore (Mobile : 9958521406 / 8178038561) invited me for this business and I invested around Indian rupees 2Lakhs to join the business in April 2018. I transferred amount to Tarun Kumar and not to Qnet, I was not knowing about the type of work. I trusted my friend and invested, later i got to know about type of work and realised its completely fraud, when i asked to return my money they told they purchased products worth 2lakhs in qnet, now i want to return it (Trip Saver pack which is still valid) and avail refund kindly help me in this process, and they have purchased for 50,000 only, that too giving his own details while purchasing. Mr. Tarun has also mentioned fake id while purchase of Trip Saver Pack. How I can return this pack and get refund. Rest they r not showing proof of purchase nor giving money, kindly help me in getting refund from Tarun Kumar (9013697530 /9810577822), bank details mentioned in my account are also fraud. I want them to be punished.
Regards
Vismita
8287204865
pihukelani29
2 years ago
I really need help..
Really
I want all of them...in jail...
Please help...to get my refund back 🙏they are fraud people ....
Heartless ......
Karthick Sugumar
3 years ago
Hi,

i have been fallen in a business which is so called as network marketing & its referred by my colleague. In the begining of this business they will ask you to follow the instructions which is been trained by there Uplines ( Cheating Techniques ) & if we need to earn money then we need to cheat others . I need a big help from someone who can help me to claim my money it's 4 lakhs .
sagar.kakkala
Replied to Karthick Sugumar comment 2 years ago
Hi even I lost money and in search of help for 4.5 lakh
Yamsani Navyatha
3 years ago
Why you people are still leaving those,how can i get justiceand how can i claim a complaint against them,iam the one who is not at all involved in that business and trying to pull all the innocents out from that,can anyone help me out?what should i do?
pihukelani29
Replied to Yamsani Navyatha comment 2 years ago
Hey please help me
jitu moni
6 years ago
http://www.mid-day.com/articles/qnet-case-scam-mumbai-news-mumbai-airport-arrest-eow-aditi-mitra/18084164
The Economic Offences Wing (EOW) of the city police arrested a woman in her early 30s on Thursday for her active involvement in the multi-crore QNet scam. The total number of arrested accused has now reached 47, which includes Billiards champion and Padma Bhushan recipient Michael Ferreira.
In the Rs 1,000-crore scam of Hong Kong-based company QNet, nearly 5 lakh investors across the country were duped. QNet has been accused of using the banned binary pyramid business model for its multi-level marketing schemes to lure investors.

QNet posed as a marketing firm selling bio-discs, watches, herbal products, holiday packages, etc. It also claimed that by using the bio-disc, one could cure cancer and brain diseases, the police said.
Too much baggage
Accused Aditi Mitra was intercepted at the Chhatrapati Shivaji International Airport, and subsequently, arrested based on the lookout circular that had been issued against her.

Assistant commissioner of police Arun Jadhav confirmed her arrest said she was sent to police custody till March 23.
Mitra was allegedly trying to flee to Dubai for good. She was carrying eight big bags and two handbags. Of the eight, two contained her belongings; she refused to say what was in the other six, sources said.

Mitra, an independent representative associated with QNet, had been getting hefty commissions in return. She has multiple bank accounts, with one alone having Rs 25 lakh, as EOW officials found, adding that all her bank accounts have been frozen.

Active player
Investigators found that on the instructions of the other accused, Mitra was actively involved in the scam. She had brainwashed victims in order to induce them to invest in the scheme,” said special public prosecutor Pradip Gharat.

A victim, Sewri resident Arpita Majarekar, said, “She would conduct welcome sessions in malls and trap people with her sweet talk.

She had promised me and many others that if we invested in the scheme, we would get double the amount in three years.” Majarekar, who works in a private firm in Andheri, had invested nearly Rs 12.5 lakh in the scheme through Mitra.

She has been booked under relevant sections of the Maharashtra Protection of Interest of Depositors in Financial Establishments Act, Prize, Chits and Money Circulation Schemes (Banning) Act, and the Indian Penal Code.
gurupreet
6 years ago
QNET VICTIMS please beware of this shady character one Mr. Rafiq whose posing as an "High Court Advocate & RTI Activist" at various online web sites.

This guy is a sweet talker and will promise you refund from QNET if you appoint him as an advocate, he is doing nothing but cheating your further...here is his modus operandi...

He also claims to be behind several actions that have been taken place by mumbai police and FFVA but the FACT remains that he has nothing to do with any of these actions being taken all over India.

He will convince victims to appoint him as an ADVOCATE and thereafter tell victims to deposit Rs 50,000 in various bank accounts to show that he has been apponited.

He will promise that he will return back the money after showing that to QNET office but the FACT remains that after the money is transferred he will stop recieving your calls and vanish .

We have recieved multiple complaints against this FRAUD, please BEWARE you all have already been cheated dont get cheated again.

For your REFUNDS only follow the correct and LEGAL way to get your refunds along with compensation, for more info do drop us a email at [email protected]

FFVA i.e Financial Frauds Victims Association has been formed to help and provide legal aid to victims of QNET SCAM.

http://www.mid-day.com/articles/qnet-forms-financial-fraud-victims-forum-scam-gurupreet-singh-anand/17659179

Please stay away from crooks and fight for your legal rights in correct and proper way.

Regards
Gurupreet
mona risbud
Replied to gurupreet comment 3 years ago
Hi,Needed help from you. Please advise how can i recover my money back as there is an emergency in the family.
Agyat Vyakti
6 years ago
read modus operandi of qnet here qnetindiascam.blogspot.in please share and aware
vimlesh
6 years ago
Qnet and their franchises will be punished soon. These frauds are playing with words, emotions of innocent and simple people.
Agyat Vyakti
Replied to vimlesh comment 6 years ago
please share this in your social network read modus operandi of qnet here qnetindiascam.blogspot.in please share and aware
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