Moneylife Events
Consumer interests hurt as ambitious Aadhaar-linked e-KYC burdens the consumers

Several NGOs, activists and citizens were startled at the complete lack of clarity on the huge costs involved in complying with RBI's latest diktat on e-KYC. Also, lack of clarity on the issue of whether each biometric based transaction will involve a transaction cost to UIDAI - who pays this cost? Will it be distributed among all? These NGOs, activists and citizens have submitted a memorandum to RBI governor Dr Raghuram Rajan

The Reserve Bank of India (RBI) has come up with a circular on 2nd September 2013 stipulating all banks to implement biometric enabled or Aadhaar compliant ATM machines. Moneylife Foundation along with organisations like All India Bank Employees Association (AIBEA), All India Bank Depositors Association (AIBDA), Council for Fair Business Practices (CFBP), V CItizens Action Network (V CAN), Consumer Education and Research Centre, Ahmedabad (CERC), India Against Corruption (IAC), Forum for Fast Justice (FFJ), Forum of Free Enterprise (FEE), Nagrik Chetana Manch (NCM), All India Business Council (AIBC) and Women Graduates Union, Mumbai as well as activists and citizens signed a memorandum to the RBI on this issue.


In an interactive session of two and a half hours the representatives of the NGOs, activists and citizens brainstormed and finalised on a memorandum. The foremost issue discussed was the very fact that implementing Aadhaar contradicts the very objective with which it was introduced. It aimed to pioneer the financial inclusion but the entire system of transaction charges negate the objective. The whole process in expensive and results in deposits burdened with the charges.



NOTE: The Memorandum was signed by all the participants who were present. Others conveyed their support and logos by email.




4 years ago

From what I have seen till date the Govt. in connivance with Banks charge and even make money on costs incurred on the common man-Insenstive nah


4 years ago

Every move to monitor and track transactions will have a cost attached. What is important to realise is that the savings to the nation will be far greater than the costs. While the people of the country rants againt corruption and leakages of Govt funds in implementing schemes, the very same people oppose it when their own transactions are monitored, showing the double standards of the people of the nation. THe message seems to be "Curbing corruption is fine as long as it is not my corruption that is curbed."

Veeresh Malik

4 years ago

Aadhaar must be used as the definitive document for all services in Parliament and other Institutions nearby, like Courts and Government offices, for ALL services utilised by people in Government. This would be the best beta test before launching it on the rest of the country. Every subsidised meal in the Parliament Canteen, every MPLAD expense, every entry/exit movement of government employees and their vehicles, every bill paid on taxpayer account by anybody, needs to go through Aadhaar first and only when fully de-bugged, to be released on the paying public.

I wish.

Can happen in a democracy.

chathapuram ganesan venkatasubramanian

4 years ago

Govt need not make it compulsory. We are having PAN,PASSPORT, DRIVING,VOTERID AND BANK PASSBOOK.
Government can say three or two of the above or Aadhar card. Similarly the KYC done by the financial people making a mockery of itself.Government is spending so much money on Aadhaar.

pushkar kulkarni

4 years ago

aadhar must die a death with UPA government.

how can some body spend ( Nilekani) crores of rupees without any accountability. we have to investigate who is the promoter of this idea.

unfortunately in India one get away with murder at very low cost .. be it advertisements e g somebody endorsing chocolate flavour addition to milk and claiming that overnight you can become taller/ smarter/ fairer / handsomer...........

such company would have to close the shop in any other reasonably developed country.



In Reply to pushkar kulkarni 4 years ago

Certainly agreeing with Sri Pushkar Kulkarni, Death is certain to the UPA Government. Alongwith Aadhar Card the UPA Government shall its own death because of its own wrong policies which are meant for promoting corruption and cause lot of problems to the common man. This government instead of easing rules and regulations, creating complications to the common man.

M P Bhaya

4 years ago

The idea of issuing id card to all ws good, but the way it is implemented it is in a mess and criminal waste of public money.

J Thomas

4 years ago

Give some incentives to the people for example if you bridge the aadhaar with the bank, you are going to get the administration charge for one year (1% - 10% of the actual earning). If this happens, people will definitely queue again for the aadhaar enrolement and I hope no one can challenge this move in any court.

Ramesh Iyer

4 years ago

When the SC has ruled that Aadhar No/Card will not be mandatory for availing of welfare schemes from the govt, why does RBI have to make such elaborate policies to deal with Aadhar data as e-KYC. Let those who have / choose to have Aadhar provide it as part of the regular KYC process (copy of Aadhar Card) as they do with other documents for KYC formalities.

Though GoI made having PAN Card mandatory for various financial transactions years ago, Banks hardly have any system in place to verify PAN details of customers. They have no database sharing arrangement with the IT Dept which issues these PAN Cards. Then why all this fuss over Aadhar, which is optional ?

Protect your Money: Ignore dubious chain-money schemes and false promises

Sucheta Dalal talked in detail about how the different multi-level marketing –MLM scams have siphoned off money from India and the helplessness of authorities, including police, to fight with those having political clout

Chain-money schemes like Saradha, QNet and Speak Asia are flourishing in our country. Countless money has been lost in this manner. Almost every other month we get to know of a big scam in one state or another, where thousands of crores have been collected from investors, who have been promised high returns, sometimes of more than 100%, in a relatively short period of time. Sucheta Dalal, managing editor, Moneylife magazine, said, “In 2010, for example, a pyramid scheme called City Limousine found investors from even within the RBI and Income Tax office. According to numbers in a Times of India story, 15 RBI officials, 200 I-T officers and no less than 6,000 police officers invested in this dubious scheme.” She was speaking at a seminar organised by Moneylife Foundation in Mumbai on Friday.

These kinds of reports are becoming more repetitive in recent days. Multilevel marketing (MLM) and chain money scams have rocked the entire country for a considerable time. Ms Dalal talked in detail about how the different multi-level marketing scams have siphoned off money from the country and the helplessness of the police to fight with those having political clout.


She started the seminar by differentiating between regulated and non -regulated investment schemes. Most of the MLMs, pyramid and Ponzi schemes are run under pretext of chit fund, which do not fall under the SEBI regulation. This keeps these dubious schemes run galore with an unbelievable number of clients resulting in eventual scams.


According to Ms Dalal, pyramid schemes are the most vicious of all the schemes. The saddest part is the fact that the ones sitting at the top end do not bear the brunt of the losses. It is the ones at the bottom half who suffer. She explained to the audience that multi level marketing works on two levels, one with products and the other without products. Companies like Rose Valley in West Bengal had come up with glitzy terms like Redeemable Reference Bonds, Secured Debentures to lure the customers into such schemes.


Ms Dalal says that the political connections of these dubious companies allow them to flourish. She said, “A lot of promises are made immediately after the scam is exposed, but nothing happens. At a previous seminar we’ve had officers from the Serious Fraud Investigation Office tell us that they would like to take action but the government opposes this. The only way to ensure you are safe is by focusing on what is being sold to you. Keep in mind that if something is too good to be true, it probably is.”


There are a number of variants of pyramid schemes, but Ms Dalal said that, in her opinion, the binary scheme is the most dangerous. She said, “Any scheme that requires you to draw in a couple of other people is always a scam. It doesn’t matter if there’s a product involved. The only reason there is a product involved is so that it doesn’t become a money circulation scheme.”


On the issue of steps taken by the government, she discussed at length the steps taken by various states to tackle the issue. She said, “In India there are loads of legislation but very few actions.” Direct selling companies like Amway, Tupperware attract the housewives first since they are the most gullible. In such cases, acts like Prize Chits and Money Circulation Acts(banning), 1978, Drug and Magic Remedies Act ,1954 are never properly implemented to protect the interest of the investors.

The seminar ended with a Q and A session where several investors shared their experiences, and came up with ideas to create a forum, which can redress the complaints of the investors, who were cheated.




3 years ago

Today QNET advocates scored a second self goal in court :)

Ever Since my fight started against QNET SCAM I have faced the following lawyers in court by appearing in person:

1. Nitin Pradhan
2. Mahesh Jhetmalani
3. Abad Ponda
4. Haresh Mohan Jagtiani
5. Divya Bahl
6. Rajendra Mokashi
7. Kuldip Patil
8. Sandeep Karnik
9. Sudatta Patil etc…

All these are senior advocates with teams of juniors below them but till date QNET did not get any single favorable order from any court.

The FIGHT enters a “new phase” now….Ganpati Bappa Morya :)


4 years ago


This Morning QNET team Leaders had organised a Seminar/System at the following address and invited innocent people to induce them into this illegal money circulation scheme..the system was held at the following address:

Youthapreneurs Training Center, 605, Alpana Bldg, Opp Sarvoday Hospital, LBS Marg, Ghatkopar (W), Mumbai - 86

During the raid Mr.Bijoy Mathews was caught red handed promoting the illegal money circulation scheme in presence of 45 Odd people.

Ironically this Mr.Bijoy Mathews is the same person who has had cooled his heels in the jail for more then 20 days in the past for the same offence.

The officers of EOW detained and questioned several people and names and contact details of 47 people were noted down :)

I am sure the records of the activity today will lead to the cancellation of the bail of several team leaders of QNET.

Let me mention here that a similar activity was done by the EOW several months back when QNET leaders were holding a system meeting in Dadar, Mumbai and details were noted down. These details led to the arrest of Nine qnet leaders earlier.

So guys any guess who all will be arrested now after today's raid/activity?

Best guesses will win prizes ;)

Keep posting/replying...


P.S Tomorrow is the Hindi New Year so my msg to QNET "Happy New Year" in advance...

After the ABA of your people are cancelled we will get the bails also cancelled wait and see...


4 years ago


A rebuttal of the false claims made by Team Faith's "Lead Bird".

“I’m abroad taking medical treatment for a longstanding problem that I have.”
“As soon as I am cleared to travel, I will appear before the EOW.”

• What is this longstanding problem that requires medical treatment?
• Where are you getting yourself this treatment from?
• Couldn’t you get medical treatment for it in India?
• Does that mean that neither the Bio Disc nor Chi Pendant could keep you healthy or treat your ailment?

More Lies of him EXPOSED..

Read the complete story here...

Vande Matram


4 years ago

I did not want to post this but since these QNETERS prompted and instigated me so BE IT...

The esplanade court today heard the remand application of the state i.e EOW.

Mr. Abad Ponda appeared on behalf of all the eight arrested top leaders of QNET in mumbai.

After hearing the arguments of both the sides...the judge has had remanded all the eight arrested top leaders of QNET in mumbai in police custody till the 29th...

And more and more people from QNET are now coming forward and giving statements to the EOW mumbai and joining my case as a "witness"...QNET days are numbered now...the deck of cards is collapsing..


4 years ago

Hello Friends, since i got my FIR registered in the month of August, it has been three months QNET has failed to re-start the "SYSTEM" In mumbai. First they had to cancel their grand celebration planned to be held at "Holy Spirit Hospital" Hall in andheri-east.

Later these QNETERS tried to do a "system" in Islam Gymkhana and had to cancel that also.

It is said that the third time these people placed advertisements in newspapers of mumbai to invite people into investing into a "Business Opportunity" and were holding that meeting in hall in dadar-west.

It is being said that today morning crime branch officials raided several residential places of QNET leaders all over mumbai and the following were detained/arrested.

Vivek Kumar Singh

Shashi Bushanrameshwar Pandey

Namrata Pandey

Sabina Mathews

Vijay Mathews

Jagdev Singh Parmar

Rohit Chandra

Mahesh Bhansali

All the above people have shared the "proceeds of crime" and huge amounts of money had been transferred into their bank accounts under the guise of "commissions paid". Sources say these huge amounts of money has been raised by running a money circulation scheme in India under the guise of "ecommerce" by QNET India.

It is now upto the rest of QNET IR,s to decide whether they want to continue to be part of this crime of "money circulation scheme" or they want to join the investigation and help the police and become "Government Aprovers".

It is your choice you want to become a accused in this crime, because some day some one will surely report you, it is better to give up this "white collared crime" now itself, then land into trouble later.

I appeal to you all IR,s to give this anti national activity once again, Please do not forget this is not happening the first time. Previously also in chennai assets,properties,cars, bank accounts etc of all TOP IR,s and team leaders were sealed by chennai CID.


4 years ago

Now Absconding Accused Vijay Easwaran disowns "QNET INDIA"

These are experts taken from the interview of Absconding Accused Vijay Easwaran

“QNET operates in India through a Franchise company hence Absconding Accused Vijay Easwaran has no involvement in it, he is neither a director nor a shareholder of Qnet India.

He further threatened to seriously think of Pulling out of INDIA.”

BOSS, you are talking of pulling out? YOU and YOUR SCAM will be KICKED out of my nation INDIA wait and see and this will not be the FIRST TIME that you are KICKED at your FAT A$$ and thrown out, will follow your SHAM company and expose it till you call it QUITS, the sooner you PULL OUT the better warna you know that saying “Badey Beaabroo ho kar terey dar sae nikley”

So Mr. Absconding Accused Vijay Easwaran if you have a BRAIN to think of new new SCAMS there are people who can work together to EXPOSE your SCAMS...r u ready for it now….hahaha


4 years ago

The State bank account of Vihaan aka QNET frozen...

Account Name: Vihaan Direct Selling India Pvt Ltd,
Bank Name: State Bank of India
Branch: Horamavu
Address: NO.2A Munireddy Layout,Horamavu Main Road, Banaswadi, Bangalore – 560043.
Account No: 32322965489
IFSC Code: SBIN0013397

Happy Diwali is what?

Hehe more to come ;)


4 years ago

Dear All,

Below is the list of FATWAS issued against QNET/QUESTNET in India by the islamic scholars of Darul Uloom Deoband in India. I Hope the scamsters and cronies of QNET/Questnet now SHUT UP and STOP cheating the people of INDIA of their HARD EARNED MONEY.

Question: 1664 India
As-salaam alaikum My brother is doing net working business with a concept of e-commerce named Quest net .(( ) I wanted to know is this halal business It starts with A makes the investment of 30,000 by buying numismatic coins. Then A should make 2 members under him B & C ( each has to invest 30,000 ).Then B & C have to make 2 member under them 1, 2, 3, 4, , making the chain of 6 people. Once 6 members are done A will get Rs. 11,500/ once. As the group of 6 people is formed A keep getting 11,500 / for each group only once. The Company explains their business as below Here , all are customers of Quest, and buy directly from the company, not from a dealer/stockiest or distributor like in our traditional business and MLM company. When R buys a nokia phone from Quest with M?s reference, M gets a commission of Rs. 2000.When V buys a nokia phone from Quest with R?s reference, M & R both get a commission of Rs. 2000. When T buys a nokia phone from Quest with V?s reference, M, R & V all get a commission of Rs.2000. When A buys a nokia phone from Quest with T?s reference, M, R, V, T all get a commission of Rs. 2000. So on???.. . HERE WE HAVE THE SAME COMMISSION FOR ALL LEVELS. The numismatic coin is just an entry point into the business. Respected brothers I am very sorry to write such explainatory fatwa, Please mail the fatwa as soon as possible. Was salam
Answer: 1664 Nov 11,2007
(Fatwa: 1366/1218=B)

According to the detail provided by you about the nature of the questnet, it is not a halal (permissible) business; it is haram (impermissible) by many ways.
Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,
Darul Uloom Deoband

Question: 20938 Saudi Arabia
I want to know about one business. Which is as following. Sir the business name is network marketing. The process is that I buy one product which is truely HALAL.e.g wathces, Jewellery etc. Aftre buying the product the company from where I bought the products asked me whether you want to become our business parter If I said Yes. Then I become the business partern of that company. And the money I paid to buy the product is my investment. Now if some more persons come to buy the product from this company through my refrece. Then company will give me commission let say 3% to 6% of each product. and the products are truely HALAL. And there is no cheating also. If I make the marketing of this company and asked the people to buy more product from this company then my i will get profit. If i stop then i will not getting anything. Please let me know whether this business is HALAL or not ... i shall be very thankfull to you if you email me this answer.
Answer: 20938 Mar 28,2010
(Fatwa: 548/L=186/tl=1431)

Network marketing involves cheating and invalid condition. Also, it involves earning profit by unlawful means; hence this business is unlawful according to Islam. It is not lawful to become a member of the company and receive profit.
Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,
Darul Uloom Deoband

Question: 7573 United Arab Emirates
Dear Mufti, Asalamualaikum, I want to ask is network marketing is allowed in islam? Is it permisable to take the commission from the pepoles works whos is working below you?
Answer: 7573 Oct 23,2008
(Fatwa: 1152/993=L/1429)

Network marketing is neither based on partnership nor Muzarba (investment by one partner and work by other), rather it consists of many invalid conditions, and it is similar to lottery and gambling. Also, there is so much deception that in the greed of wealth it can trap the entire population in financial crisis. Therefore, it is Islamically unlawful to become its member or to take commission from the work of the persons below you while you do not have a share in their work.
Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,
Darul Uloom Deoband

Question: 385 India
As-salaam alaikum

Right now I m doing business named RCM business it is MLM (Multi level Marketing) in this business we have to make twwo more distributor not more than that it is textile industry but now it also produces FMCG (Daily commodity goods) in this business the company gives us commission on the sale and on the purchasing goods from the company the concept of this business is that instead of giving money to the advertisers it gives commision to the distributor. As the business volume i.e. sales increases the percentile increses.But here it gives the commission from the sales.for eg if we buy a tooth paste for 32 rupees we get back 20% also as compared to other market product it is cheap. My question is that can we do this business.

Answer: 385 May 23,2007
(Fatwa: 118=117/D)

It is allowed to become member of RCM and take commission on that. Likewise, it will be allowed to sell items purchased thereof and receive benefit. But, participating in the network marketing system which requires adding two members in the network and getting benefit on the purchasing of these members, is unlawful. Also, there are some more evils in this scheme that involve interest and Bai-e-Fasid (transaction having any major falult). Therefore, it will not be allowed to participate it.
Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,
Darul Uloom Deoband

Question: 31769 India
There are companies who asking online opinion in terms of survey and giving Rs 500 on each survey. For example: do u aware about samsung computers? r u using it? quality is good or not? etc... speakasia company wants 11000 initially then you will get 2 sureys in a week. Total 8 surveys in a month till 11 months. 4000 for one month, excluding taxes.. They are asking 11000 because there is a new way of advertisment called Network marketing also called multilevel marketing. If I bring Two new person to join speakasia company they will give me 1000 Rs on one pair and if they 2 of them bring another 2 and 2 persons then I will get 2000 as 2 pairs now that 4 persons bring 2-2 persons then as per 4 pair I will get 4000 and so on. dis makes pple to advertise abt d company. hence every person advertising it. which makes company to attract more and more person. company uses 11000 to rotate it to public in the form of advertising. Is this allwoed or only survey allowed?
Answer: 31769 May 02,2011
(Fatwa: 796/277/TL=1432)

Setting the condition of paying eleven thousand to get survey of the company is invalid condition, thus it is unlawful; therefore it is unlawful to join the companies and do surveys.
Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,
Darul Uloom Deoband

Question: 43912 Egypt
I am willing to invest money with a company called star capital finance Ltd. which basically does the following: The company is based in New Zealand. The investor (myself) creates an account and debits an amount of money to invest with (for example $10000), the company invests these funds in daily transactions and gives back the profits on daily basis in my account. There is no guaranteed amount for profit or loss (this is variable hence the funds are added to my account after each transaction (daily) and I can withdraw my funds totally anytime with no restrictions. The company uses the funds to invest in 3 categories: (1) Gold. (2) Real Estate. (3) Foreign Exchange. Is participating in this Shariah compliant or not?
Answer: 43912 Feb 04,2013
(Fatwa: 373/274/D=1434)

You wrote where the company invests but you did not write what is the method of its business? In the case when company gives you profit on daily basis, if it is the method of network marketing then it is not lawful as the business item is sold ahead without taking it into possession which is not lawful as per hadith. Rather sometime there is no existence of business item and only verbal sale takes place and profit and loss is also done which is not lawful. Hence it is not lawful to invest in it. If the method of the company is something else then you should write it in detail.
Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,
Darul Uloom Deoband

I Hope the scamsters and cronies of QNET/Questnet now SHUT UP and STOP cheating the people of INDIA of their HARD EARNED MONEY.


4 years ago

Fatwa against the nature of business in which QNET indulges…

Some IR asked this question emphasizing again and again on the word “HALAL PRODUCTS” but the council answering this question sees through the EVIL DESIGN and pronounces this business of “NETWORK MARKETING USING WATCHES AND JEWELLERY AS HARAM”.

Question: 20938
Saudi Arabia
I want to know about one business. Which is as following. Sir the business name is network marketing. The process is that I buy one product which is truely HALAL.e.g wathces, Jewellery etc. Aftre buying the product the company from where I bought the products asked me whether you want to become our business parter If I said Yes. Then I become the business partern of that company. And the money I paid to buy the product is my investment. Now if some more persons come to buy the product from this company through my refrece. Then company will give me commission let say 3% to 6% of each product. and the products are truely HALAL. And there is no cheating also. If I make the marketing of this company and asked the people to buy more product from this company then my i will get profit. If i stop then i will not getting anything. Please let me know whether this business is HALAL or not ... i shall be very thankfull to you if you email me this answer.
Answer: 20938
Mar 28,2010
(Fatwa: 548/L=186/tl=1431)

Network marketing involves cheating and invalid condition. Also, it involves earning profit by unlawful means; hence this business is unlawful according to Islam. It is not lawful to become a member of the company and receive profit.

Allah (Subhana Wa Ta'ala) knows Best
Darul Ifta,
Darul Uloom Deoband

The FATWA can be seen here


4 years ago


In my answers, I will try and explain whatever little I know about Qnet. I have a close friend having been tricked into becoming a member and also got know a few other people. Since I was very curious about the Qnet Scam I researched and got my answers. Its a pyramid scheme in the disguise of an MLM business model.

Q1. What is the Business of Qnet?

The business of Qnet is to sell the epic dream of 'Work for a couple of years and earn forever, doing nothing'. Needless to say, there are millions of people across the world, who buy into this dream.

To become a Qnet member you have to buy products between INR 40K -120K. Qnet sells its products at crazy margins, for eg my friend bought their bestselling product A Healing Biodisc 2for INR 22,000. In reality, it is just a 3 Inch glass disc that can be procured from China for nothing more than INR 100.

The gross margin is whopping 21900%.

Q2. What is the greatness in products that Qnet sells?

The greatness of a Qnet product is that it contains magic. Or atleast a promise of magic.

And most magic is perceived rather than reality. How do you know if a health shake you just drank increased your immunity or not. The Qnet members who buy these products believe in them because THEY WANT to believe in them.

I will give you a few examples. The top 3 categories for Qnet are Energy, Nutrition and Personal Care.

A Qnet biodisc for INR 22K is supposed you make you feel fresh. There is no measurable/ visible effect of freshness. You might as well buy a Tibetan ring for INR 250 that also claims to make you feel fresh.

Similarly Qnet's Nutriplus protein powder costs INR 4000 and improves immunity and builds Muscle. But one can also buy a horlicks for the same and it costs only 150 bucks.

You get the drift.

Q3. Who makes these products that Qnet sells and what is the relationship of Qnet the Company and the manufacturers? Is it Vendor - Principal, Self Manufactured or a combination of Both?

It’s a combination of both.

In my discussions with one of the estranged senior member I got to know that most of their products are manufactured or sourced from China. A few products are sourced from other countries as well.

For their travel package product they have a couple of self owned resorts in Thailand.

Q4. What margins are possible to be earned on such products? Answer with world examples of similar industries and quote some publicly available data.

Product level gross margins are upwards of 10000% in most products.

At a company level the cost structure looks like follows
As a percentage of revenues, 20% are operating expenses. MLM companies are heavy on marketing and sponsorships, international and local seminar with celebrities, promotions, IT, Trainings etc. For eg Qnet is associated with F1, Donates to Unesco, Is the sponsor of Indian Davios cup team etc.

40% is distributed as commissions between the 'Upchain' members. All those people who have led to this member are paid. People higher in the chain get paid less per transaction but will have higher cumulative earnings and vice versa. Qnet follows a MLM model known as Binary Tree Structure. The commission models can be disguised in many forms but broadly the payouts remain the same.

Remaining 40% is operating profit of the company (Qnet)
These percentages (20:40:40) differ for different companies. Qnet chooses to spend more money on marketing and promotions to increase its member network. With time it is becoming increasingly difficult for MLM companies to make members. A decade back a large MLM company could have done with (10:30:60) model.

ROIs, ofcourse are crazy since this business is not capital intensive. Its scam intensive :)

I am surprised on how media and government are quiet on such large scale scams.

The product level margins are as follows

A Biodisc2 Costs, INR 100 and selss for INR 22,000
A Nutriplus costs INR 4000, comparable Horlicks costs INR 150

Qnet will debate that their product has some magic that horlicks does not have , but it’s just sales talk.

Q5. How can these margins be remunerative by sharing across multiple levels of people? If margins are finite, how can sharing be infinite? (It is possible

A successful binary tree model MLM company can reach 1 million members in 24-28 layers and 10 million members in 30-34 layers.

If a company has say 10 million members, the commission from a new transaction will be divided between 30-40 members in the Upline. Its infinite only in theory.The commission models can be disguised in many forms but broadly the payouts remain the same

Before starting Qnet promoters used to run a company called Goldquest , which is a known scam and is now banned in many countries. Most MLM companies have a shelf life of 5-10 years. Once the pace of signing up new members becomes really slow, the promoters will start a new company. They can either wind up the current company or let it linger on for sometime.
After winding up, promoters usually restart with a new product and new name. Their top distributors move with top 3-5 layers of downline to the new company. This is exactly what has happened with Glodquest promoters started Qnet.

I also want to touch upon the phenomenon of Qnet members trying to make a new member. We all have been approached by some friend/ relative for some MLM company or the other. An active MLM member does not look at his relationships as relatives and friends, he only starts looking at them as downlines. He also manages to convince a few only to realise a few months/ years later that he has lost/ strained that valuable relationship.A newbie however is different, he is still trying to understand the people and business and once he realises the truth drops out of the chain. 50% of the MLM members become inactive in the first year itself.

The members do not themselves believe that they are doing something wrong because of 2 reasons. Firstly they don’t know that they are part of larger scam and take it to be genuine business proposition. Secondly even if they know about the scam they don’t mind since they see a few senior members making a lot of money. The senior members are ‘demi god’ figures in the network. They are idolised and spoken about in every conference. What members fail to realise is that big money is only made by people who are way higher up in the chain and this money will keep flowing in to them only for a few years till that scam survives. After a few years these distributors will move along with their key team to another company and start rebuilding their downlines.

So the mantra is that if someone really wants to make money from the MLM scam, they need to ensure that they are early members of the chain in their country, Milk the cow and then move on to the next new company and product.

This can only be avoided by an active media and government. MLM is highly regulated in western countries and hence you will see that most fraud MLM companies are active in Asia/ MENA region.

6. Why can’t Qnet sell its great products (with its great margins like Walmart) and become the biggest retailer in the world?

Please refer answer 2.

There is no real need for these products, they are bought not for their benefits but to as a ticket to the evil /epic dream.

Ans 7) In the disguise of empowering people, Qnet only fools them. Even the acts of good faith are done to gain publicity.

Ans 8) In last decade or two network marketing has become an evil word, the mention of the same itself will make people run away. The Qnet members are trained not to give any indication of the business early on to a prospect. The real sales pitch only comes from a senior member in a face to face meeting.

Ans 9) Most fraud MLM companies sell dubious products at obscene prices. These products can only be sold by push that comes naturally in Pester Marketing. Many members buy a product simple because someone who is dear to them has harassed them enough to buy it. These members are not even looking at this buying to become a part of the network. The only other people who buy these product for logical reasons are members looking for further income.

Ans 10) I think his article answers your question Page on

Author Supreet Singh


4 years ago

Hi ,

In the quest of spreading awareness regarding Qnet scam please read below link ...

Modus Operandi of Qnet -

You will get a call from a friend / Colleague whose not so close / distant for years...informal chat converted to business proposal .
The person who's being called is a " Prospect " which needs to be converted to " Plan ". The word Plan depicts it al l- it's planned to dupe you !!!
Normal conversation for a business invitation - " I am indulged in an International Business for financial freedom ( Kitane Din Naukri karta ..?? for how long will serve others ?? etc etc) .We are into expansion phase, one of my senior business partner from.... place will be visiting in this regards by tomorrow / day after tomm.
Can i book an appointment with him / her ?? But you must be punctual as time of seniors is very precious ( Bullshit..these crooks are lying there day n nite ).
Pls bring ur CV also as proper interview will be conducted , if u get selected u'll be offered this promises."

Once the appointment fixed u'll be called at Coffee shops like CCD /Barista etc etc to impose on Freedom from office envrionment ( fact is qnet does not have place to sit anywhere) . Once u reach to place 2-3 so called seniors will sit along with u ( as taught by seniors when a plan arrives ratio of Plan & IRs should always be +1 i.e. if plan is single person then atleast 2 IRS should b present , if 2 persons attending the plan IR strngth should be more than 2 ...this is to create psychological pressure / stress on "Plan" )

Before conversation starts ur dear friend will "edify" the senior which elaborates on how rich he/she in professional career with handsome experience of years in Corporate world etc etc. Senior business partner starts with own well crafted story which which throw light on Banking/ Insurance/Telecom/media world scenario 7 then his own Organisation wherein his Boss / Colleagues lost their jobs with tagline ..though i was secure i've started looking for an opportunity.Then the story goes roller coaster way how he /she introduced in this business passing thru below questionaire -

1,Whether u r willing to Learn - very popular example qouted will be of Sachin Tendulakar palying Golf after his retirement
2.Time - 20 hrs a week
3.Constraint about any specific Industry
4.Investment - 3-7 lacs - One time , no recurring charges

The entire conversation is well drafted, rehearsed & executed...result u may be convinced to join it..
But there won't be any informtion imparted untill u commit to join with handsome money..

Robbert Kiyosaki's 4 Quadrant theory...details of's subdiaries.e-commerce way of balloon bursts..etc.
Assurance of money back in 6 months..double in 1 year..Millionare (Crorepati) in 2-3 freedom by creating abundance..RYTHM..

After 2-3 hours u'll land up saying Yes with confused mind state as "What am i suppose to do in this business "

Nobody will answer this question till u join...after meeting same invitee friend will hug & assure u " You just come, will work as team ( Main Hoon Na )".
Now ur friend will start chasing u till he recieves entire money starts surprises..u'll be asked to pay for Books/DVDs ( which all r pirated ones)
enrollment fees for seminars / systems etc etc.

The Quality & Price of product purchased as assured by ur mates ( Now he'll be ur Upline & u'll be his downline forever ) ,( if u r fortunate enough to receive Product ).

After joining Mathematics will be explained which is jugglery of numbers take u to Crorepati destination in some time.
Gist of the entire session will be " since u r trapped , if u wish to recover ur money u have to trap others" .

Though there will be little change in the script / venue etc but the intent will be identical to decieve u !!
It's a vicious circle of chasing dreams by duping ur own near n dear ones .

Do not indulge urself & others in this sham so called e-commerce busness !!!

Keep reading for more updates on legal case filed against Qnet .

Write up courtesy "Swatantra Bharat"... aapko shat shat pranam ___/\___


4 years ago

Dear readers, another link to show how big is MLM industry and what QNET is doing.

Palak Kaur

4 years ago

First of all, qnet is selling dreams to people, knowing that anyone who wants to become a millionaire will definitely get fooled and in turn fool others to buy this fake and costly products. I am an Qnet IR too.. but after much research i realized that it was the biggest mistake of life to join qnet and i have wasted my hard earned money of 1,20,000 ..we are told that qvi holiday package are the best and worth buying and that it should be compared apple to apple...the fact is we are paying even more than the rack rates of hotel listed with ..we pay 1,20,000 for package for 5 yrs. plus everytime we go on a holiday we have to pay 11000 rs as usage charges, if you divide the 1,53,000 by 21 nights that they are giving. per day cost comes to 7285 rs. and for upto 4 ppl is only in selected hotels that too depending on availability...Citrus Retreats alleppey in kerala ..rack rates are 5750 rs per day, even in peak season in december its 6500..m sure v all negotiate when v go on a holiday and dont pay the actual cost..even if one more adult joins, still it would be less than what we are paying to qvi..rack rates of royal goan haathi mahal in goa is 4500..citrus chambers in mahabaleshwar..rack rates are 6000rs per day...even palace of the golden horses in malaysia..the rack rates are 5836 rs if booked 14 days in advance...also any middle class family may or may not be able to afford international holiday every alternate yr...and locations in india are very less...the concept is very become fool by someone...and in turn u need to fool others to earn ur commission


4 years ago

After closing of Credit card PAYMENT GATEWAY...the "I-Coupon" to go next...enjoy Q


4 years ago

Dear Friends,

I thank every one from the bottom of my heart for the support they have given me in the last two months by providing all kinds of internal information needed to bring this giant SCAM called QNET down.

Friends we need to take this fight now to the NEXT LEVEL. We need information such as names,email ids and telephones numbers of people who have enrolled in this pyramid scheme. Please email me all details on and help the cause!!


Moneylife Insurance seminar: Insure for the risk of high financial loss

Moneylife Foundation held an exclusive, in-depth session conducted by Raj Pradhan for the management students of Centre for Management, Bandra (Mumbai). Personal Accident, Life, Health, Car, Travel and Home insurance concepts were discussed in detail

Moneylife Foundation hosted an insurance session by Raj Pradhan for management students of Centre for management, Bandra (Mumbai). Mr Pradhan gave insights to an eager audience of B-school students on different types of insurance ranging from personal accident, life, health to car, travel and home insurance. Personal accident (PA) is a must-have for everyone. PA cover premium is inexpensive and remains unchanged, even though most products are offered only till 70 years. PA covers accidental death and disability.

Health insurance is skipped by students and young generation, but there is rise in lifestyle related diseases and even hospitalisation for gastric related issues. Even if students don’t buy health insurance, they should know the terms and conditions of the mediclaim policies of their parents. It is important not just to have right mediclaim, but also being able to get the claim paid by following the proper procedure and honouring the timelines given for hospitalisation intimation and claims filing. Critical illness can be thought as an add-on to your mediclaim. It will pay lump-sum irrespective of your expenses on medical condition. It is useful as many times after hospitalisation you may not be able to work for an extended period and mediclaim will not cover beyond hospitalisation expenses and few months of pre and post hospitalisation expenses.

It is imperative to get adequate life insurance for financial risk protection against death of a bread-winner in the family. There are different avenues to do it like Term Life, Endowment, Money-back, ULIP, Whole Life, etc. While a term plan is pure life insurance the others are insurance-cum-savings products. It is best not to mix insurance and investment needs. There is increasing awareness of online term plans and people are finding it to be attractively priced.

Buying life insurance policy in utmost good faith will ensure your family does not have to run from pillar to post to get the death claim paid. Every insurance company will repudiate fraudulent claim. Hiding a medical condition at the purchase of the product is as good as wasting the premium payment. Insurers know how to detect a fraud which can entail services of detective agencies.

Third party liability car insurance is mandatory, under tariff and inexpensive. It is important to ensure your car/two wheeler has this cover. Own Damage cover is optional, but gives comprehensive cover for your car. Shop for car insurance as premiums vary across insurance companies and even across channels like online, agents, car dealers, brokers, etc.

Overseas students and travellers should consider buying health insurance as medical treatment can be unaffordable abroad. Beware of fine-prints and check which hospitals offer cashless network. Paying upfront from own pocket can be expensive.


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