According to EOW of Mumbai police, these team leaders of QNet received commission ranging from Rs40 lakh to Rs2.5 crore in the binary pyramid scheme which is banned in India
QNet, the Hong Kong-based controversial multi-level marketing (MLM) operator that is accused of collecting money under the garb of selling products suffered another jolt. The Economic offences wing (EOW) of Mumbai police, which is probing a case against the MLM company, arrested eight of its agents or independent representatives (IRs) as QNet refers them. The EOW also froze bank accounts of these people.
According to Times of India, the eight arrested are, Vivekkumar Singh, Shashibhushan Rameshwar Pandey, his wife Namrata Pandey, Sabeena Vijay Mathew, Vijay Mathew, Jagdevsingh Parmar, Rohit Chandra and Mahesh Baharwali, all of whom are team leaders of QNet.
The EOW has frozen Rs1.8 crore from Vivekkumar Singh's bank account. Shashibhushan Rameshwar Pandey had Rs70 lakh, his wife Namrata Pandey had Rs2.5 crore, Sabeena Vijay Mathew (Rs1.2 crore), her husband Vijay Mathew (Rs74 lakh), Jagdevsingh Bhulsingh Parmar (Rs70 lakh), Rohit Chandra (Rs1.2 crore) and Mahesh Baharwali had Rs42 lakh in their bank accounts, all of which is now frozen by the EOW.
Rajvardhan Sinha, additional commissioner of police (EOW) told the newspaper that "These accused have got commission ranging from Rs40 lakh to Rs2.5 crore in the binary pyramid scheme which is banned in India".
Earlier, in August, the EOW froze six bank accounts of QNet and its associates with a balance of Rs46 crore in all these accounts. EOW had registered a case against QNet, for allegedly duping thousands of investors by selling them plastic and glass products terming them miraculous objects for treating severe diseases like Cancer. ()
The complainant, 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. Anand told the police, “They (IRs) had said that one of the bio-products my wife bought could be used to treat my 12-year-old son's brain-related diseases.”
The FIR names five accused, including QNet's Hong Kong-based founder Dato Vijay Eswaran, a Malaysian by birth and an Indian by ethnicity, who is photographed hobnobbing with the Prince of Saudi Arabia, in order to enhance his credibility in the Gulf.
As reported by Moneylife, QuestNet and GoldQuest, the MLM companies that had shut shop in 2009 following police action are back with a bigger bang. They now call themselves as QNet and are thriving in an environment where tens of thousands of Ponzis and MLM companies are able to lure people into believing that they have the formula to instant riches and a high growth career.
QNet operates in India through its official franchisee Vihaan Direct Selling Pvt Ltd, which carries the company's brand name in the country. However, Suresh Thimiri, who is often touted as QNet India's chief executive and had denied any relationship with QNet or any of its representatives, owns the 'QNet' trademark in India through his company Transview Enterprises Pvt Ltd!
Another interesting aspect in the whole episode is all top officials (?) of QNet India do not want to reveal their identity and remain hidden. Moneylife repeatedly sent emails to the company's official PR agency and also some officials from its parent QI group but there is no information forthcoming.
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Western Railway is seeking a revision in monthly passes on suburban network. However, it would not be required if only the authorities can cut unnecessary expenses and corruption, says Samir Zaveri, who runs Moneylife Railway Helpline
Citing losses incurred, the Western Railway (WR) wants to double the monthly season ticket fares for commuters on Mumbai's suburban network. However, the same WR is relentlessly wasting public money and its officials were found covering up the expenses.
Samir Zaveri, railway activist, in a letter to Railway Minister Mallikarjun Kharge, says, "(The) main reason for losses is inefficiency and rampant corruption in Western Railway. This is evident in the Jagjivan Ram Railway Hospital at the Mumbai Central where the authorities spent about Rs20 crore on its cardiovascular thoracic surgery department but as many as 22 out of the 43 machines installed by them have been out of operation."
Similarly, the WR is spending money on renovation of Churchgate station. "They (WR) are replacing flooring tiles that are in good condition with slippery tiles near the ticket reservation and food courts. When the tiles fitted on platforms have more life and these tiles are not slippery, then what is the point in putting lives of thousands of commuters in danger?" Zaveri asked.
According to a report in Hindustan Times, with expenses of about Rs1,300 crore and revenue of Rs700 crore, the WR is incurring major losses annually. Of the income, nearly Rs500 crore of suburban revenue is earned from monthly passes. Considering the losses incurred by the railway suburban section, the authorities have suggested revision in fare of monthly passes for both first- and second class to the Parliamentary Standing Committee.
This means, that a second class monthly pass from Virar to Churchgate that costs Rs280 will cost Rs560, and a first-class pass costing Rs1,025 will be available for Rs2,070, the report says.
Shirish Deshpande, chairperson of Mumbai Grahak Panchayat, told the newspaper that, “The railway fare should be linked with the services they provide. Even after paying 5-6 times higher than a second-class passenger, a commuter in the first-class is not assured about his safety.”
The market was holding steady but a late selloff erased all the morning gains. Nifty will try to rally on Monday as bears seem to be tiring out.
Yesterday, we had mentioned that the stock markets may move upwards but would remain weak. This is exactly what happened on Friday. Initially, a somewhat spirited opening and some strength in the morning and afternoon session kept the optimism brimming. However, a dramatic selloff was witnessed in the afternoon through the end of the session. The markets fought back and finished flat after briefly being in the red.
The BSE 30-share Sensex opened at 20,316 and moved up to its intraday high of 20,388 before a late sell off pushed it down to its intraday low of 20,137. Sensex closed at 20,217 (down 11 points or 0.06%). Similarly, the NSE Nifty opened at 6,027, hit a high of 6,049, steadying for a lengthy period before a late sell off saw it fall to an intraday low of 5,972. The Nifty closed at 5995, just below the psychological 6,000 barrier.
Volumes were extremely weak, with just 49.43 lakh shares being traded. This means that bears are tiring out.
PSU Banks and Auto were the worst hit indices, falling 1.02% and 1.17% respectively, while public sector enterprises (PSE), finance and energy were the best performing indices moving up 1.28%, 0.52% and 0.78% respectively. The rest of the indices were more or less flat.
Of the 50 stocks on the Nifty, 26 advanced, 23 declined and one remained unchanged. The top gainers were ONGC (3.25%); Cairn (3.23%); Tata Steel (2.85%); GAIL (2.25%) and L&T (2.21%). The top five losers were Sesa Sterlite (2.79%); Tata Motors (2.36%); Bajaj Auto (2.27%); IDFC (1.50%) and State Bank of India (1.39%).
Of the 1,432 shares on the NSE, 603 closed in the positive, 738 closed in the negative while 91 remained unchanged.
The RBI said that the weakening domestic macroeconomic conditions, combined with the continuing subdued global growth posed challenges to the banking sector during 2012-13. According to the Reserve Bank of India, the ratio of NPAs increased further during 2012-13. There was a rise in the slippage ratio as well as the ratio of restructured advances to gross advances. The increased stress in asset quality during the year was primarily on account of non-priority sectors. There was a rise in the NPA ratios for the industrial and infrastructural sectors.
In the meantime, the RBI was suspected to have sold dollars via state-run banks starting at around 62.93 rupee levels in a bid to support the rupee while the dollar strengthens amidst talks of tapering. Gold and crude oil fell as well.
US equities saw some strength yesterday, with Dow closing above 16,000 for the first time. This was boosted by better jobless claims by the Labour department, which fell by 21,000 to 323,000, better than forecasts for 334,000. Existing-home sales declined for the second consecutive month in October, while constrained inventory means home prices continue to see double-digit year-over-year gains.
In Europe, German November IFO confidence was pegged at 109.3, when compared to median estimates of 107.7. This implies much improved economic climate and recovery of the biggest economy in the Euro region. According to Bloomberg, German business confidence surged to the highest in more than 1.5 years. Germany’s DAX was seen flat. Additionally, there are rumours that the British economy is also improving, after the British pound rose to its 4-week high against the dollar. European markets were seen flat, with a slightly positive bias.
Asian markets were mixed, with Nikkei still extending gains by 0.11% while Shanghai Composite extending losses by 0.44%. The rest of the Asian markets were flat.
US futures were seen trading flat, with a slight positive bias during early trade.