MLM / Chain Money
QNet: SEBI asks victims to file complaints in EOW under PCMCS Act
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.
 

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COMMENTS

jitu moni

2 months 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

4 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

Agyat Vyakti

5 months ago

read modus operandi of qnet here qnetindiascam.blogspot.in please share and aware

vimlesh

5 months ago

Qnet and their franchises will be punished soon. These frauds are playing with words, emotions of innocent and simple people.

REPLY

Agyat Vyakti

In Reply to vimlesh 5 months ago

please share this in your social network read modus operandi of qnet here qnetindiascam.blogspot.in please share and aware

Nifty, Sensex near oversold zone – Monday closing report
We had mentioned in Friday’s closing report that Nifty, Sensex might bounce back next week. The major indices of the Indian stock markets suffered a sharp correction on Monday of around 0.90% over Friday’s close. The trends of the major indices in the course of Monday’s trading are given in the table below:
 
 
Investors were spooked by Prime Minister Narendra Modi's hint of raising taxes on income generated via stock market. Besides, continuous outflow of foreign funds dragged the key domestic indices lower. However, the Finance Minister Arun Jaitley clarified on Sunday itself that the government has no plans to impose long-term capital gains tax on share transactions in the upcoming budget, describing media reports of Prime Minister Narendra Modi's speech earlier as erroneous. Market sentiments however remained low on Monday. The BSE market breadth was tilted in favour of the bears -- with 2,015 declines against 583 advances. On the NSE, there were 197 advances, 1,249 declines and 53 unchanged. Pharma stocks continued to be under pressure as were metal stocks after there was a sharp decline of metal prices in Asian trade.
 
Industry chamber Confederation of Indian Industry said on Sunday that "a digital infrastructure providing comprehensive data to financial institutions would help smoothen access to credit from the borrower's angle and assessment of credit worthiness from the lender's side. It would supply identification, financial information, credit information and other information related to governance of a company.” CII has suggested that abundant data on small and medium enterprises (SMEs) and corporates through various sources can be made available to the banks and other lending institutions. The banks may choose to offer loans at varied interest rates depending on the strength of the data of the customer, it added. 
 
An auditors body on Monday sought independent powers of investigation for Parliament's Public Accounts Committee (PAC), and demanded that banks, other financial institutions and PPP projects be brought under the purview of India's official auditor. "The Institute of Public Auditors of India (IPAI) has strongly demanded that the PAC be given enough powers to take up issues for investigation on its own. "It also advocated to bring banks, other financial institutions and projects under the public-private partnership (PPP) within the scope of the Comptroller and Auditor Generals' (CAG) audit," the body of public finance specialists said.  "A report should also be placed in Parliament about recommendations of the PAC, which have not been accepted by the government, along with reasons thereof," IPAI said in a statement, adding that a time limit should be set within which departments should submit their Action Taken Reports. "Currently, banks, financial institutions and PPP projects are not under the purview of CAG, and in view of various anomalies witnessed recently in these important segments of economy, the CAG should be empowered to audit these sectors' records to ensure transparency and accountability," the statement added. Bank Nifty closed lower on Monday.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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SBI Index crashes to all time low in December 2016
The yearly State Bank of India (SBI) Composite Index, an indicator for tracking India’s manufacturing activity, has crashed to an all-time low in December 2016 of 45.5 (moderate decline), compared to last month’s revised index of 50 (low growth). According to the researchers at SBI, the Index of Industrial Production (IIP) may show a decline in December 2016.
 
"Retail sales during the month of November 2016 were down in the range of 20-40% due to currency crunch and negative sentiments on account of uncertainty post Government’s monetary initiative. Even the festive season shifted early by almost a month this time, which also resulted in lower sales during November due to post-festive sluggishness. Overall we feel that the effect of demonetisation is more of short term nature, say a quarter or two in most of the sectors, except real estate, jewellery, and luxury goods, and will normalise thereafter," SBI says in a report.
 
 
Interestingly, the directional validation of the SBI composite index also throws some more interesting facts on manufacturing activity. The directional validation indicates the direction of the predicted month-on-month index with the actual IIP-Manufacturing index growth for the corresponding month.
 
 
Sectors such as fast-moving consumer goods (FMCG), consumer durables, plantation and plantation products, and fertilizers, which mostly derive strength from rural influence, will seem to face certain moderation in demand from the consumer side, owing to significant amount of cash transaction involved in these sectors. 
 
"We may see weak Q3 sales for India Incorporation as most of the sectors that do cash sales - are either extending credit or are not doing sales. The weak sales would have a trickle-down impact on the supply chain, thus hampering economic activity across sectors and supply chain," the report from SBI says.
 
 
The report also highlights low credit growth, which it feels is a matter of concern. The fortnightly data of all scheduled commercial banks (ASCB) indicates that credit off-take (year-on-year) continues to be a laggard and has declined to a historical low of 5.8% as on 9 December 2016.
 
 
"Due to weak credit off-take and huge money inflows, we expect a faster rate of marginal cost of funds-based lending rate (MCLR) transmission by banks in the coming days as inflation trajectory is expected to remain benign with consumer price index (CPI) inflation at sub-4% for coming months till January 2017. Though inflation may increase thereafter (post January), it may not be more than 4.5% by March 2017," SBI concluded.

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