MLM / Chain Money
QNet: Michael Ferreira, three others sent to police custody by MPID Court
The special MPID court on Wednesday sent four prime accused in the multi-crore QNet scam, including Michael Ferreira, former world champion of billiards to police custody for seven days. Thane Police had arrested all the four accused.
 
On Tuesday, the economic offences wing (EOW) of Thane Police arrested Ferreira, along with Srinivas Rao Vanka and Magaral Veervalli Balaji, both directors of Vihaan Direct selling (India) Pvt Ltd, Malcolm Nozer Desai, who is a 20% stakeholder in Vihaan. 
 
According to the complaint filed in the Thane EOW, Ferreira and others conducted meetings about investment in various schemes of QNet in a city mall.  
 
Thane EOW has appealed other victims in the QNet scam to contact them. 
 
Earlier, the Bombay High Court had rejected the anticipatory bail applications of all the accused calling the whole business of QNET as “prima facie illegal business”.
 
The HC order mentioned "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 will not 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.”
 
Even, the Serious Frauds Investigation Office (SFIO) had termed the whole business of the QI GROUP in India as a “threat to the national security” said the whistle blower Gurupreet Anand who submitted the SFIO report in Bombay High Court as well as Supreme Court of India along with other documents and the supreme Court dismissed all SLPs filed by the accused ordering them to surrender within seven days.
 

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COMMENTS

jitu moni

1 week 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,ā€ said special public prosecutor Pradip Gharat.

A victim, Sewri resident Arpita Majarekar, said, ā€œShe 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.ā€ 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

2 months 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

goel002

2 months ago

Qnet is threat to genuine companies. Which are the genuine direct selling companies in india . ? Please name a few.

goel002

2 months ago

It's amusing to read such comments like national security risk, money going out of country, people get fooled etc.. ignorance is threat to national security fools. Company like amazon , samsung, apple are not india based and still they make billions. Potentially making the argument about money leaving the country, straight to the bin. National security risk. Hahahahaha. Who thought of this idea. Are they selling bombs, arms ammunition , conducting terrorist training camps, printing fake currency, doing hawal transaction , political affiliated, make religious comments ,. no they are not . Q net is definitely not a threat to national security. Whoever talk about logic . Please apply your mind to this logic as well.
Second argument is in qnet person is fooled n all.. everyday someone is getting fooled by people on the ground, small traders, auto wallas, lawyers, at your work place, popular online e-commerce portals.
People will not crib about high price tag for apple products whi reduces to 25 % of its original value in retail after 2- 3 years . That is actually fooling people.

REPLY

jitu moni

In Reply to goel002 1 week ago

Do you make retail sales or lure people of financial freedom in 4-5 years and then ask them to invest lakhs in products so that associated Tracking centres can be bought and placed under upline. You want to go to jail, Mister.

goel002

2 months ago

If qnet is not legitimate direct selling company then who else is. Q net is a legitimate company with complete transparency in dealing with customers. There is no money transaction in making members. Transaction only takes place only when somebody buys a product, watches, holiday packages etc.. what is wrong with that. Just like amazon, flipkart. You sign up for free and then choose to buy whatever you like. Here the publicity is word of mouth. Where is the fraud in that. People who crib about the company is because they r not successful. Specially sardarji who has nothing substantial to do. Imagine someone given a ferrari and is not able to drive it. You cannot blame the company for providing faulty car or fraud car company. Getting my point. As an independent representative, they only promote the portal. Whether people want to purchase anything is upto them. Its fantastic becoz whatever purchase happened from your promotion, you get paid. Its a business. Just like you open a shop, whatever selling happens the owner makes money. Here the person who is getting customers to the shop also makes money. Its legal. People with half knowledge and unsuccessful are spreading negative propoganda about the company and the industry. There are direct selling guidelines by the govt of india which q net follows. So relax and dont be afriad about qnet.

Agyat Vyakti

3 months ago

Yes together we can destroy qnet.. To help people from trap of online ponzy schemes like qnet which will come in future. Alexa and online site statistics can save you. I reccomend you to read this to save yourself from emotional trap of friends and relative who work for qnet http://qnetindiascam.blogspot.in/ or google qnetindiascam blogspot to read deeds of Ashwin Baluja and Prithvi Raj Grover share it . I need to populate this.

Laughter 24X7

3 months ago

Its not truth ...

REPLY

jitu moni

In Reply to Laughter 24X7 1 week ago

47 Arrests, bank accounts reveal commission paid on enrolling members. Want to challenge Bombay and Delhi High Court , go file PIL

vimlesh

3 months ago

I know the reality....gone through the whole peocedure which is qnet claims as false.........ferreira should be hanged till death...

REPLY

Laughter 24X7

In Reply to vimlesh 3 months ago

How can say this .. Qnet not scam

Nifty, Sensex Continue to Struggle – Wednesday closing report
We had mentioned yesterday that the market is in a resistance zone. Indian markets were pulled marginally lower on Wednesday on the back of weak domestic cues. Disappointing domestic services data for December and a lack of consensus at the GST council meet subdued investors' sentiments. The key indices provisionally closed marginally in the red, as banking, finance and energy stocks witnessed selling pressure. The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched down by 1.75 points or 0.02 per cent to 8,190.50 points. The Sensex touched a high of 26,723.37 points and a low of 26,606.06 points during the intra-day trade.
 
The trends of the major indices in the course of Monday’s trading are given in the table below:
 
 
The BSE market breadth was tilted in favour of the bulls - with 1,575 advances and 1,161 declines. On Tuesday, positive global indices, along with value buying and short covering, buoyed the benchmark indices.
 
In the broader market, the S&P BSE 500 closed 3 points lower at 11,116.92. The S&P BSE SmallCap index bucked the trend to close 60 points higher at 12,375.22. Meanwhile, the S&P BSE MidCap index ended 11 points lower at 12,194.63. Banking stocks bled the most while realty stocks emerged as the top gainer followed by consumer durables. The S&P BSE BANKEX index closed 170 points lower at 20,446.24 
 
Jubilant Life Sciences zoomed 12% after the company signed a long-term contract in Radiopharma business with Montreal Canada for distribution of products used for diagnostic and therapeutic procedures for thyroid, myocardial perfusion, lung, kidney and bone scans.
 
Ramco Systems shot up 9% on the BSE. Panasonic Group of companies in Malaysia has signed a multi-million-dollar strategic deal with Ramco Systems Sdn. Bhd. Malaysia part of India-headquartered HR software major Ramco Systems to digitize and transform HR and Payroll operations for nearly 20,000 employees nationwide on a unified platform. 
 
The top gainers and top losers of the major indices are given in the table below:
 
 
China stocks ended higher extending Tuesday's gains, as improving liquidity in money markets and moderating interest rates lifted market sentiment. Japan's Nikkei rose 2.5% to 19.594.16, making the biggest gains in about two months and closing at its highest level since early December 2015. The blue-chip CSI300 index rose 0.8% to 3,368.31 points, while the Shanghai Composite Index gained 0.7 per cent to 3,158.79 points.  European markets were steady at the open. 
 
The closing values of the major Asian indices are given in the table below:
 

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NBFCs fail to perform in FY15-16, first half FY16-17
Given the level of performance over the past one and a half years, it can be easily forecast that the non-banking financial companies (NBFCs) will continue to follow a downward trend. Further, the second half of the current year will also remain affected due the Government’s demonetisation move and, therefore, one can easily expect the decline to be sharp at the end of the FY16-17.
 
During the past few years, the NBFC sector has constantly been in the news, which was mainly due to the promise that the sector has shown to stakeholders, both domestic and international. Over the years, the sector has gained a lot of importance and confidence among regulators, which has urged them to streamline the regulatory directives for the NBFCs. There have been multiple attempts to do that. However, despite the fact the sector received sufficient attention, it has failed to live up to its potential. At least, that is what the recently published Financial Stability Report, December, 2016 and the Report of Trend and Progress of Banking in India, 2015-16 have to say.
 
In this article, we intend to analyse the performance of the Indian NBFC sector on the basis of these two reports.
 
Size of the NBFC Sector
 
The reports suggest that the number of the NBFCs has been falling over the past few years. The cautious approach of the RBI in handling NBFCs and also its intention to consolidate the NBFC segment can be attributed to this decline. As seen in Figure 1, the number of NBFCs fell from 11,842 at the end of FY14-15 to 11,682 at the end of FY15-16 and 11,555 at the end of the first half of FY16-17.
 
 
Performance of the NBFC Sector
 
The industry has reported decreasing growth. The reports state the overall balance sheet size of all the NBFCs grew 15.5% during FY15-16 and 8.5% during the first half of FY16-17.
 
Further, the sector reported 10.5% growth in loans and advances at the end of September 2016 as against 16.6% at the end of March 2016.  However, during the last one and half years it also reported a rate of gross non-performing assets (GNPA) that is in line with the normal trend. During the first half of FY16-17, the NBFCs reported GNPA of 4.9% which was 4.6% at the end of FY15-16. Figure 2 shows the trend in GNPA and NNPA reported by NBFCs during the past four years as compared to the growth in loans and advances.
 
 
It is the assumed that the deterioration in the asset quality is mainly due to the inter-connectedness of the NBFC sector with the banking sector and the poor performance of the banking sector in terms of asset quality. As per the Financial Stability Report, the GNPA of the banking sector was 9.1% at the end of the first half of FY16-17, expected to go up to 9.8% at the end of FY16-17 and to 10.1% at the end of FY17-18. 
 
One of the major causes of the poor overall performance of the banking sector is the weak performance by public sector banks which reported GNPAs of 11.8% of the total advances at the end of the first half of FY16-17. This is expected to rise to 12.5% by the end of FY16-17 and 12.9% by the end of FY17-18.
 
In terms of capital adequacy, the sector has not been able to perform well during the past one and a half years. The performance has been deteriorating in comparison to the existing trend. The overall capital adequacy stood at 23.1% at the end of first half of FY16-17 and 24.3% at the end of FY15-16. Figure 3 shows the trend in overall CRAR of NBFCs in India during the past few years.
 
 
Though the overall capital adequacy of the NBFCs were much above the regulatory requirement of 15%, given the downward trend and the rising level of NPAs, it is certainly a matter of concern for the industry.
 
(Abhirup Ghosh is research analyst at Vinod Kothari & Company)
 

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COMMENTS

Aditya

3 months ago

If this is the case then why Moneylife recommends GRUH, Bajaj to invest in. Just because they are one of the smartest in NBFC industry.

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