MLM / Chain Money
QNet, the MLM company, has no answers to Moneylife’s simple questions

QNet, the MLM company which has become active again in India, cannot provide answer to a single question asked by us. Instead it sent us a threatening and defamatory mail that raises more questions as to their real motive

QNet, the controversial Hong Kong-based multi-level marketing (MLM) operator with multiple names (GoldQuest, QuestNet, QNet, QI Ltd and QI group are the better known names) refused to answer simple questions like how much money their independent representative (IR) earns on an average every month and why their products are priced so highly.


Instead Zaheer K Merchant, director for corporate affairs at QNet, sent us a mail (after five days) which not only admits that the company tried to bribe us, but has also threatened us accusing Moneylife for targeting only QNet not other MLMs. As regular readers of Moneylife know, we have been writing on a large huge number of MLMs, pyramid or ponzi schemes. A simple search of would reveal scores of stories of these shady schemes. Here is a quick rundown on how Moneylife has never flinched from reporting on the corrosive influence of MLMs whenever it has had a chance to.


Remember Speak Asia, Stockguru and NMart? Even mainstream media has acknowledged that Moneylife was the first to expose them.  Moneylife flagged Speak Asia as a fraud, way back in October 2010. In December 2010, Moneylife had reported about the dubious modus operandi of Stockguru.India and advised investors to stay away from investing in the company. It collapsed much later. Similarly, in August 2011, we informed our readers, how Surat-based NMart Retails, a division of Newlook Multitrade Pvt Ltd, is running a collective investment scheme (CIS) based on MLM model, under the guise of selling products through its retail chain. Needless to say all the three mentioned above duped lakhs of people. There are scores of other such examples.


Here are a few initial questions that we asked to QNet, which it has failed to reply…


1. What is the churning ratio of QNet Independent Representatives (IRs)? On an average, how many IRs join and leave the company in a 12-month period? What is the IR retention rate in this line of sponsorship? What is the renewal rate of IRs?

2. What is the average amount an IR typically earns in a year?

3. How many IRs earn less than $1,000 as commission in a year?

4. What is the maximum amount an IR had earned in a year as commission and royalty through selling QNet products and through selling promotional, motivational materials?

5. Are the products sold by QNet priced competitively? If not, how much is the difference? Is it true that QNet products are costlier by over 100% than similar products available in the market since you shell out 50% as commission?

6. Who has certified your nutritional and wellness products? Is there any certification from FDA (US FDA) available for the nutritional supplements you sell? Who decides whether a person needs nutritional supplements? Is it your IR or a qualified doctor?

7. If someone decides that the QNet business is not for him, what is your refund policy?

8. Does the business model really free people from their jobs or have they just replaced their job with another that has more risk?

9. Does the QNet business really allow the leaders more time with their families?

10. What are the chances that someone starts from the scratch and own an office in QI Tower*?

11. Are you registered in India? Who is the regulator, governing your business activities in the country?

12. What is the status of court cases regarding GoldQuest and QuestNet in India?


Instead, five days after our queries, Mr Merchant (now Director Corporate Affairs, who was projected as legal head in 2009) wrote to us with a series of counter questions. We publish them with our replies below each sentence…


QNet: We had invited your organisation and Ms Sucheta Dalal, to attend at our office in Hong Kong to provide her with every opportunity to review our operations.


Moneylife: This was in August 2009, soon after the police action in Chennai had closed down its sale of numismatic coins in a company called GoldQuest. Moneylife had written extensively about it and was constantly writing to Ms Usha Thorat, the then Deputy Governor of the Reserve Bank of India (RBI) asking why action wasn’t taken against the company. She in turn passed the buck on to chief secretaries of states by writing to them. We had already written a story “Coin Game” on the shady business of GoldQuest coins.  It is obvious that this carefully timed media junket was seen as a way to ‘soften’ journalists with a paid foreign holiday rather than a review. Naturally Moneylife rejected it.


QNet: We made overtures to meet with her, and did do so in Mumbai some time back.


Moneylife: This is a lie. There has been no ‘overtures’. The fact is, ever since Moneylife has been campaigning against dubious MLMs and pyramids, both Amway and the Indian Direct Selling Association (IDSA) have long meetings at our office but could not answer many of our queries. Some of the questions asked to QNet were also asked to Amway. In fact, Amway representatives Richard N Holwill and Rajat Banerjee admitted to us that although some distributors tend to go overboard in pitching the scheme, income from being a distributor of Amway can, at best, be a source of additional income or pocket money for most people. It is not the pathway to riches as MLM companies make it out to be. However, Amway also insisted that there is no longer any joining fee and the model does not necessarily require enrolment of distributors. However, there was no answer to expensive nutraceuticals being prescribed by doctors, whose wives or relatives were Amway agents.


QNet: We had provided Ms Dalal with relevant information and material. Our distributors thereafter also met with her and attempted to communicate with her in connection with our business and its legitimacy.


Moneylife: Another lie. No distributor has ever met us in to communicate about the business or its legitimacy. The only person who met us, came as a close personal friend and on checking with him again, he insists that he had not met us as a QNet representative.


QNet: The fact that there is no express legislation governing the business in India doesn't make the same ‘illegal’ in the manner in which the same has often been cited and reported in the seminars and documents which your establishment presents.


Moneylife: This is a matter of dispute and debate. Mr Merchant agrees that they operated in a legally unclear area. He also indicated that QuestNet was being kept out of the Indian Direct Selling Association (IDSA) by a cabal of US MLMs such as Amway and Tupperware despite its best efforts. He also pointed out that these MLMs had not been facing problems in India.

The fact is there has been plenty of litigation on the issue, precisely because various authorities consider that the operations are illegal under the Prize Chits & Money Circulation (PCMC) Act of 1978.  Moneylife Foundation, an NGO for spreading financial literacy has repeatedly warned people about falling for MLM and pyramid companies with innumerable examples of losses incurred. Moneylife Foundation sent a representation to the Prime Minister, Finance Minister, Governor of RBI and SEBI.

Former Expenditure Secretary EAS Sarma has also written to the PM and the Ministry of Corporate Affairs (MCA) about the need to check the proliferation of Ponzis and binary pyramids which are duping people.  We have been specifically told by the Ministry of Consumer Affairs and the Ministry of Corporate Affairs that they are investigating these scams and plan action/tightening of legislation. To turn Mr Merchant’s argument on its head, just because our regulators are sleeping and scams are always discovered too late, if at all, does not make an unregulated scheme legal.


QNet: We have also found on several occasions that there is a marked level of partiality towards reporting inaccurate material about our business.

The discussions which have come about as to your site and seminars and the ‘talk’ is, contrary to what is projected by you as to being industry watchdogs with care and concern for the people allegedly duped by MLM business, you seemingly prefer certain MLM companies over others. The mantle almost of a crusade is thus assumed only against certain MLM entitles. Why do people have this impression? Can you please explain? I am certain that this is not the case, but I would appreciate your confirmation in writing to this assertion made by several other entities that you are not what you make yourselves out to be. Additionally, matters such as the success we have had in the courts are never dealt with. Preference is given in fact to reporting salacious and incorrect material, which is always unverified and inaccurate.


Moneylife: Mr Merchant prefers to throw unsubstantiated accusations. We prefer to offer facts. Only Moneylife has been writing about the menace of MLM schemes, including GoldQuest, QuestNet, Stockguru.India, JapanLIFE, Amway, Speak Asia, NMart, AdMatrix and so on. On the other hand Moneylife Foundation is helping people to become aware about money circulation or MLM schemes and is actively involved in making changes in the government policies through representations, memorandums etc.


It is laughable that Moneylife is accused of being partial towards any MLM when we alone are crusading against ALL such schemes. QNet should drop its defamatory and scandalous tone and please offer us one shred of proof.


Talking about getting in touch, we have been contacted by IDSA and Amway, who promised us to provide answers to questions raised by us. So what was stopping QNet from reaching out us? We reiterate that it was Moneylife which got in touch with QNet before writing any story and not the other way round as is being claimed by Mr Merchant.


QNet: Additionally, you have already written and filed a story which is defamatory, aside from being totally baseless and confused, about us. This leads to the possible conclusion that there is no real sincerity to the assertion that you are seeking information and wish to truly educate anyone. On the contrary, it begs the question whether any information given will be used properly, reported accurately or simply (worse as we have been warned about) that you may misuse or divulge information to other organisations which may be allied to you. The essential element is whether we will get a fair outcome or hearing, since the actions belie the request. The story is as below in the link pasted. Again, I am inclined to believe this cannot be case, but I would like formal confirmation in writing as to the same. Additionally, if you are going to publish your request for information and this response, please do us the courtesy of publishing the contents of this email in full as opposed to simply abridging and prefacing it wrongly. Your purported seminar on 23rd November also makes several assumptions and comments of us, preferring to lump us together with other (wrongful) companies quite baselessly. All these lead to concerns as to the points made above, which no doubt you will appreciate as much as address.


Moneylife: Before writing and publishing the current article, we contacted QNet through Mr Werner Fernandes whose company used to handle the PR of QNet, and gave them enough time to reply. However, instead of a simple reply, Mr Merchant sent a mail whose tone is threatening and defamatory.


According to Robert FitzPatrick, President of US-based Pyramid Scheme Alert, schemes like QNet or GoldQuest are an “endless chain”, or a “pyramid scheme”.


“I believe this form of fraud is a clear danger to national economies. They subvert efforts to accumulate wealth. They divert energy and funds from real businesses. They often divert people from seeking more education with their promises of fast wealth. They destroy savings and equity of lower income people. They confuse people as to what a legitimate value-based business is. Unless the regulators and analysts recognize and are willing to assert that this form of business is ‘inherently' fraudulent and harmful, it is rather difficult to stop any one particular company. Such a fraud, whether the products are soaps, gold coins, vitamins or air in a box, will always cause 90%-99% of the investors to ‘fail’. Whether some of the people engage in retail selling or not, the income promise that relies on continued expansion is deceptive, that is, it is a lie. The financial harm to the vast majority is predetermined. Calling it a business does not make it so. A real business requires an exchange of value," wrote Mr FitzPatrick to us. He is actively exposing several pyramid, ponzi and MLMs.


Mr FitzPatrik was involved in framing new law in Sri Lanka to deal with MLMs, especially GoldQuest. During 2005, the GoldQuest scheme spread across Sri Lanka, marketing gold coins for double their worth. Sri Lanka's central bank noticed that the equivalent in their currency of millions of dollars had left the country, a big drain.


What is sad is many people have left high-paying jobs to “pursue their dreams” in an MLM. Having been conned so dramatically, they do not easily admit defeat. It seems easier to cling to the bad dream in an increasing cycle of desperation to make the MLM work against all odds.


*QI Tower in Malaysia is where QNet founder Vijay Eswaran has his new office. (




1 month ago


Ever since you lost your hard earned money in QNET SCAM, you all have multiple questions and facing multiple issues like :

1. Where and whom to approach for recovering your hard earned money?

2. How to help fight and stop this QNET SCAM?

3. How to teach your CHEATER UPLINES a lesson?

4. Issues regarding the “so called” “REFUND POLICY”.

5. Are you eligible for “Compensations”?

6. Issues regarding action buy police authorities.

7. What is the status of the court cases etc.

These are an example of just a few issues and concerns you are facing, but there is GOOD NEWS for you all. We have been working overtime to try and bring an end to these woes and issues faced by Victims of Financial Frauds like this QNETSCAM.

So guys and girls tomorrow is the BIG DAY finally , Please do join us tomorrow (Sunday) afternoon at 1.30 PM sharp at Andheri east, outside Sarangi Restaurant (Just 1 minute from the Andheri station on the east side).

Please do come and also inform other victims of the QNETSCAM.
Tomorrow (Sunday) afternoon sharp 1.30 PM, outside Sarangi Restaurant , Andheri-east, Mumbai.

Please note we have limited seats, first come first served basis make sure to reach in time __/\__ . You can contact on 7498063701 in case of difficulty in locating us :)

Jai Hind.

jitu moni

2 months ago
Four persons, who were associated with Hong Kong-based QNET, a multi-level marketing (MLM) company, and duped 200 persons by promising them jobs, were arrested by Central Crime Station (CCS) officials on Thursday. However, the MD and directors of QNET and its sister company Vihaan Direct Selling are still at large.

Deputy commissioner of police (CCS) Avinash Mohanty said Sreenath Konda, Prasanna Kumar Reddy, V Kanchana, B Dhan Raj were arrested from different locations in the city for cheating people.

Police said the accused had been enrolling gullible people as agents by collecting Rs 10 lakh from a group of 10 persons.

Each person would be given status of promoter, direct them to attract a group (i.e., 10 persons) and make them join QNET by paying Rs 10 lakh, for which the promoter would be assured commission.

jitu moni

2 months ago
Mumbai: The Supreme Court on Thursday directed the Maharashtra Government to file the latest status report regarding investigation so far on the anticipatory bail plea of World Billiards champion Michael Ferreira and four others, who are facing charges of money laundering in the multi-crore QNet case.

The next hearing in the matter will take place on September 14.

Besides Ferreira, the others whose anticipatory bail plea were rejected were Malcom Desai, Vanka Srinivas, Maganlal Balaji, all directors of M/s Vihaan Direct Selling (India) Pvt. Ltd, and Suresh Themiri, director of Transview Enterprises.
They are facing charges under Sections 420 (mischief), 468 (forgery), 471 (using forged document knowing it is not genuine) of the Indian Penal Code (IPC).

Justice Mridula Bhatkar of the Bombay High Court, who took on record the statement of public prosecutor Pradeep Gharat that investigations were still on, had in May rejected their anticipatory bail pleas.

Ferreira had started the operations of QNet, a multi-level marketing company, in India via his firm Vihaan Enteprises.

The QNet cheating case began with a complaint by Gurpreet Singh Anand, who raised his voice after losing Rs. 30,000.

According to the police, the money involved has crossed Rs. 1,000 crores in the alleged scam with more than five lakh investors allegedly losing their money in the case against QNet which is being probed by the Economic Offences Wing.

jitu moni

3 months ago
NewsAmbit, New Delhi
Delhi Police Economic Offence Wing(EOW) has registered an FIR against QNET India/Vihaan Direct selling India Private Limited and its three independent representatives on the allegations of cheating and fraudulently operating the multi level marketing, which is illegal in India. Police have initiated the investigation and suspecting huge scam, which is estimated in crores.
A senior Police officer of EOW said that we received a combined complaint against QNET India and its three independent representatives from more than dozen of people in the month of March this year. As per the allegations of main complainant Anuj Jain alleged that his friend Himashu Aggarwal approached him for an business opportunity. He said that he is an independent representative(IR) of an e-commerce based company. He said that he can arrange an meeting with the other IR’s who will tell you about the business and if they find you suitable you will get chance to be a part of the company. After few days Himanshu called Anuj Jain to come with a CV at a café situated in Nehru Place area on 29 November 2015. Anuj reached there, where he met with Himanshu and his to associates Anita Jaggi and Kanika. Trio told him about the business profile and also assured that this is not a networking marketing company. They demanded Rs 6.5 lakh to be a member of the company. They also said that company has millions of customers. IR of the company is treated as a partner and also got the profit share for each sale. After three four days Anuj gave them 6.5 lakh rupees but after some time he got to know that this is a multi level marketing company and fraudulently cheating innocent persons by roping them in it’s banned business with the help of IRs.
Police said that Anuj is not the only complainant so many more complainants also approached to EOW. After which a preliminary enquiry had conducted. It was found that some persons who are termed as IR contact their friends and close persons to join a new e-commerce business. They don’t tell the name of the company or complete business module at the beginning. After alluring them they set various amounts from the victim. Independent Representatives(IR) get training during the joining and talk to make further members. These kinds of IRs of the company are operated from different cafes and food courts situated in Delhi and NCR.
Those who join the company get user id etc and products like ravel packages, some other items etc are shown purchase from their money. The delivery address given in the portal is also found of overseas area most of the time and mostly that address is too fake type location only which shows that no products are being sold and it is a completely a money circulation scheme. Two websites were found involved in the namely and were found mated to Vihaan Direct selling (India) Pvt ltd which is stated Indian Franchisee of Hong Kong based net company. Investigations are on. Police are trying to unearth the whole network of the IRs on which this company is running its business unlawfully in Delhi. A case has been registered u/s 420/120B/34 IPC and 4/5/6 of Prize Chits and money circulation Schemes(Banning) Act,1978 .

Profiles of IRs
Himashu works with Samsung
Anita Jaggi works with RBS

jitu moni

5 months ago

Bluru QNet agent who earned 50L a yr as commission held
Mumbai: The Economic Offences Wing (EOW) has arrested Ram Singh, an accused in the Rs 1,000 crore QNet case, for earning Rs 50 lakh or more as commission each year from proceeds of the crime.

Singh, a Bengaluru resident, was arrested last week after the imigration authorities at Bangalore airport detained him over a look out circular notice (LOC) issued by the Mumbai police. "We are going through all his bank account details and trying to ascertain the source of money to his account," said DCP Pravin Padwal of the EOW.

Singh's name had cropped up during the initial investigation in 2013 but the police could not locate him then. In January 2015, a police team visited his Bengaluru residence but did not find him there. The house was locked. He is the 19th accused to be arrested in this case so far.

"We are working to arrest all the culprits in this case. A special investigation team has been formed to nab the othe accused invovled," said Dhananjay Kamalakar, joint police commissioner, EOW. Singh, said police sources, has been sending money to his daughter who is studying in Canada. "We have to know his source of income. He has sent a major chunk of money to Canada. We suspect this money was gained from QNet. Moreover, he was looking after the QNet business in Dubai and has been shuttling between Dubai and India. We got his passport number late. Soon after getting it, we issued an LOC notice and he was detained," said an officer.

A special MPIDA court in February this year rejected the anticipatory bail plea of Michael Ferreira (77) winner of the World Amateur Billiards Championship and a Padma Bhushan recipient, and four others, Malcom Desai, Vanka Srinivas, Maganlal Balaji, all directors of M/s Vihaan Direct Selling (India) Pvt Ltd and Suresh Themiri, director Transview Enterprises. They all have approached the high court now in the QNet case.

"They posed as a marketing firm which would sell bio-discs, watches, herbal products, holiday packages, etc. They even claimed that by using the bio-disc, one can cure cancer and brain diseases," cops said. Some money has been transferred to Malayasia, Singapore and Hong Kong, too, cops added.

jitu moni

6 months ago

Hello Everyone

The company Qnet is celebrating VCon from 3-7 May. As a present,yesterday late night, I posted lot of comments on numerous pics uploaded on Instagram. I also posted on VChief Pathmans account. Unfortunately, they kept deleting my posts and had to ultimately block me. If each one of us, Indians, takes to instagram and starts posting messages like me, then they would have to either block us or abandon their account, which is their money making tool. You can start with Qnetofficial,TheV, Pathmans account, etc with phrases like Pyramid Scheme, Qnetscam, Franchise Fraud, Police arrests, court cases,Cheating, etc. They cannot stop us if we all work as one unit.

Hope we all teach them a lesson and save other fellow Indians.

Jai Hind

jitu moni

6 months ago
CM Devendra Fadnavis has assured detailed inquiry into QNet: BJP
Chief minister Devendra Fadnavis has promised to make a detailed inquiry of the alleged irregularities by the QNet multilevel marketing company and take action against the offenders, said BJP spokesperson Madhav Bhandari on Saturday. Former union minister P. Chidambaram’s wife was a legal counsellor with the company.

The QNet company, which was earlier known as Goldquest, has cheated 12 lakh people to the tune of thousands of crores of rupees. The court has rejected anticipatory bail to the accused in this case. When the CM was contacted about this, he promised to make a detailed inquiry and take action. If necessary, he said that the CBI’s help would also be taken, said Mr Bhandari.

The party spokesperson demanded that the role of former Union minister P. Chidambaram and his wife needs to be probed in this case. “Mr Chidambaram’s wife was a legal counsellor of the concerned company. Taking note of complaint registered by a lawyer from Chennai, the Central Vigilance Department handed over the case to the CBI. The complaint also has a mention of former Union minister Shashi Tharoor. However, the CBI did not investigate the matter during the tenure of Congress government at the Centre,” he alleged.

In Maharashtra, the wife of Gurpreet Singh Anand had in 2013 filed a complaint of fraud against the company. However, there was not much inquiry during the Congress-NCP regime. But since the court has denied anticipatory bail to other accused, including sportsman Michael Ferreira, the investigation can be expedited. Many sensational things are expected to come out in the investigation as the CM has promised to carry out a detailed probe in the case, said Mr Bhandari.

jitu moni

6 months ago

Mumbai police seeks Zee business help in probe of QNet

jitu moni

6 months ago
A group of investors in the QNet multi-level market case on Sunday gathered near Holy Family Church and marched as a protest and public awarness against ponzi schemes. The protesetors reached at the house of accused Padma Bhushan Michael feriera in the QNet cheating case. The protesters were holding placards that read, Michel Ferriera Shame Shame! and Ban QNet".

"We chose Bandra for protest since most of the accused in this scam reside here. We had informed the police in advance and stated that the peaceful march will be for awareness about such fraud schemes and protest against such ponzi schemes," said Gurpreet Singh Anand, the first complainant in the QNet cheating case. He added that thgough it was his birthday but he did not spend time at home and was busy in the awareness drive.
Similar protests were held in New Delhi, Bangalore and Hyderabad on Sunday. Last month a special MPIDA court rejected the anticipatory bail plea of Michael Ferreira, winner of the World Amateur Billiards Championship and a Padma Bhushan recipient, and four others in the QNet case. They have approached the Bombay High Court for anticipatory bail. Ferreira, 77, and others had applied for anticipatory bail in 2014.

jitu moni

6 months ago
The economic offences wing of Mumbai police, probing the multicrore Qnet scam, has issued notices to Indian Super League (ISL) officials to gather details about taking sponsorship from the tainted company.
Qnet had made celebratory association as the official direct selling partner of Goa Football Club (FC Goa) throughout the Indian Super League 2015 season, from October to December. FC Goa is a part of the ISL football league tournament. Sources said the police are trying to find out the how the proceeds of crime of a company under serious investigation, have been used to sponsor the team. Police are also baffled as how the Qnet managed to generate money when its accounts have been seized. "We have sum moned ISL officials to understand the amount and flow of money in their sponsorship from the Qnet company which had defrauded several investors," said an official.

jitu moni

6 months ago

The fight against the Qnet scam wheré more than 7000 crores of rupees has been laundered out to foreign shores from India has just got bigger.

The Saradha Scam which started mainly in Bengal looks relatively smaller compared to the Qnet scam which had defrauded people across various cities like Mumbai,Delhi,Bangalore,Hyderabad etc for over a period of 10 years.

To unite and protest against this MLM scam plaguing India, all victims,activists, are requested that they gather outside Holy Family church,Hill Road,Bandra West at 10.30 A.M. tomorrow 24th April,2016.

Various press and media agencies will be present to cover the event meet and address grievances to authorities.

The current government has taken note of the Qnet scam and matter will be taken up at upcoming Parliament session.

All Indians are cordially invited to support the cause and join in the protest. We need to end the scam by spreading awareness and recover the money taken away by the scamsters.

A request to all to please forward this message on Facebook, twitter and WhatsApp groups... Jai Hind

Agyat Vyakti

8 months ago

Off the topic. This is just for awareness.. Qnet and MLM are using friends and relatives to dupe you... You may like to read Qnet modus operandi with screen shots and facts and how to avoid them here ... Please share for public interest.. Qnet Scam in India

jitu moni

9 months ago
The special court has rejected anticipatory bail applications of two directors of Vihaan, Suresh Thimiri of Transview as well as Malcolm Desai and Michael Ferreira, the stakeholders of Vihaan that handles QNet's MLM operations in India

The special Maharashtra Protection of Interest of Depositors (MPID) Court on Tuesday rejected anticipatory bail applications of five accused in the multi-crore QNet scam. This includes, Srinivas Rao Vanka and Magaral Veervalli Balaji, both directors of Vihaan Direct selling (India) Pvt Ltd, Suresh Thimiri, director of Transview Enterprises India Pvt Ltd, Malcolm Nozer Desai, who is 20% stakeholder in Vihaan and Michael Joseph Ferreira, former world champion of billiards and 80% stakeholder in Vihaan.
The Economic Offences Wing (EOW) of Mumbai Police, which is probing the case, had invoked the stringent MPID Act against controversial multi-level marketing (MLM) company QNet, which has denied any wrongdoing on its part.

Transview Enterprises is an associate company of Vihaan Direct Selling Pvt Ltd that handles QNet's multi-level marketing (MLM) operations in India since 14 April 2012. Vihaan Direct Selling, in which Michael Ferreira, the former world billiards champion, owns 80% stake, is a direct selling agent of QNet and had done large financial transactions with Thimiri's company Transview.

The EOW had booked several accused including the former world champion of billiards and five companies related with QNet, under the MPID Act. This means all the cases against QNet, Vihaan and all those involved in the MLM scam would be heard before the special MPID Court. Until now, the accused were being investigated for cheating and forgery under the Prize, Chits and Money Circulation Schemes (Banning) Act 1978, and for money laundering by the Enforcement Directorate (ED).

In February 2014, the ED registered a case under the prevention of money laundering act (PMLA) against QNet, Vihaan Direct Selling, Ferreira and QNet founder Vijay Eswaran and three other independent representatives (IRs) of the MLM operator.
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.”

jitu moni

11 months ago
MUMBAI: Investors who lost their money in major scams and multi-level marketing's cheating cases can heave a sigh of relief now. The state government has appointed 49 new competent authorities (CAs) to take decision in as many as 101 cases regisered under the strinent law, The Maharashtra Protection of Interest of Depositors (MPID) Act. This will help to dispose of as much as Rs 10,000 crore of investors that is stuck in over a hundred cheating cases' legal battle.

Earlier, the city economic offences wing (EOW) had only two competent authorities. "CAs will proceed with the procedure of disposal of properties and realisation of money for repayment to the investors. It will expedite the process of recovery and will help the victims who have been cheated to get their money back," said Dhananajay Kamalamakr, joint commissioner of police and EOW chief.

The big cases where these CAs will focus first include the cheating cases incluidng National Spot Exchange Limited (NSEL), QNet, SpeakAsia, fixed deposit scam led by Sheesha lounge owner Mohammed Fasih and the Mumbai District Cooperative Bank. SpeakAsia alone has over 24 lakh investors. The money lost in this case is over Rs 2,276 crore while investors' over Rs 6,000 crore is stuck in the NSEL case.
TOI had on October 11, 2015 reported about that as many as 62 cases under the MPID act were pending in a city court due to non-appointment of a competent authority. While seized properties of the accused in all the above cases await disbursement among the victims, the city police has sent a proposal to the state for several amendments including the appointment of CA for a speedy return of public money, said police sources. More than Rs 10,000 crore public money is stuck in MPID cases in the city alone, they said.

"Earlier, non-appointment of competent authority defeated the objective of the enactment of the MPID Act," said an EOW officer. While an investigating officer probes the criminal part of a case, the civil aspects such as the attachment of properties, sale-realization of properties, and disbursement of sale proceeds to the victims are exclusively in the domain of the competent authority who is a revenue officer of deputy collector rank.

"It is observed that competent authority has been appointed in 23 cases in the city MPID cases earlier, notification of the properties in the official gazette is yet to be published. Hence, it would be better to have CAs with independent portfolio for MPID cases," said a senior IPS officer.

Major cases where the appointment of competent authority will give relief to investors:

· NSEL Rs 6,000 crore
· SpeakAsia Rs 2,276 crore
· QNet Rs 425 crore
· FD scam Rs 325 crore
· Mumbai District Cooperative Bank Rs 119 crore

jitu moni

1 year ago

VIJAYAWADA: Yet another multi-level marketing (MLM) company Vihaan Direct Selling Ltd was sealed by police and its representatives were paraded before mediapersons here on Tuesday. Police will soon serve a notice on its promoters -- Vasudeva Reddy and Ch Gangadhar - who are currently in Dubai and alert the Interpol to help nab the duo.

Addressing a press conference here on Tuesday, commissioner of police A B Venkateswara Rao said that 134 people in the city have fallen prey to the company. "Vihaan Direct collected Rs 1.16 crore and deposited Rs 65 lakh in the account of Vihaan Direct Selling Ltd, which is based in Mumbai. Another Rs 10 lakh was deposited in the account of VR 1 Training Centre, which is based in Bangalore. Rest of the funds have been misappropriated," he said.

Acting on a complaint from a depositor Prathipathi Lakshmi Ganesh, Krishna Lanka police led by circle inspector S V V S Murthy arrested four representatives of the firm- Gourang Desai, Y Babul Reddy, D Nagaraju and Ch Manikanta -- on June 22 and recovered Rs 15 lakh in cash and four mobile phones.

It was on January 5 this year Mumbai-based Vasudeva Reddy, a notorious MLM agent, opened Vihaan Direct as a franchise of Hong Kong-based Q-Net near Prasanthi Hospital in Labbipet. He also ran a training centre called VR 1. City-lad Desai, who met Vasudeva in Mumbai, was nominated as in-charge of the training centre. Gangadhar, a close aide of Vasudava, was nominated to run the direct selling firm.

Gangadhar recruited Babul, Nagaraju and Manikanta as independent representatives (IRs) to carry out the fraudulent MLM operations. Their modus operandi was typical of a binary tree structure- each IR has to recruit more members. IRs will receive commission based on the number of referrals and sales volume of other IRs in their team.

The police commissioner said that Vijay Eswaran, who runs Q-Net, is the brain behind the MLM firms. "From 2002-08, he ran a firm in Chennai that swindled Rs 1,100 crore. Between 2010-14, he ran another MLM firm with Vasudeva Reddy, which swindled Rs 425 crore from depositors," he added.

Personal Finance Exclusive
Use the Married Woman Property Act to safeguard your life insurance policy

The Married Woman Property (MWP) Act can protect the life insurance death claim benefit from creditors and ensure that your wife and children are secured. Lack of awareness and loss of control prevents insured from going for this option. Find out how you can benefit from it

Harish was running business on borrowed capital. After his sudden demise, his creditors did their best to go after Harish’s assets. Luckily for his wife, Harish had purchased a term life insurance policy choosing the option of Section 6 of the MWP Act. It ensured that Harish’s wife got the death benefit. But many are not so lucky due to lack of awareness of such a feature available with your life insurance policy.

Today, buying on credit has become commonplace. As a responsible citizen you should make payments during your lifetime on any loan—credit card, outstanding debt payment, etc. But, it also makes sense to ensure that your wife and children really get the death benefit from your life insurance policy.

Section 6 of the MWP Act allows an individual to buy a policy for himself under the Act and create a trust for the same. There is no need for creating a trust under the Trust Act. The beneficiaries (wife and/or children) can also be trustees. The policyholder has the option to change the trustees at any point in time. Even a married woman can buy MWP policy on her name with her children as beneficiaries; though the husband will not get anything from the policy. It will be considered as a separate asset as if she is unmarried.

The procedure is simple, but it has to be done at the time of buying the policy. At the time of making the application, a separate form has to be filled by the proposer for it to be covered under MWP Act. The form seeks details of the beneficiaries, the share of the benefits that are to be accrued to them and the trustees.

According to Sanjay Tiwari, vice president of strategy and product, HDFC Life, “There is lack of awareness and very low percent of MWP policy sales; we do train our agents for highlighting about MWP benefit to customers. It clicks with specific customers who have their own businesses and want to ensure that wife and children really benefit from the policy.”

Before you jump in to go for Section 6 of MWP, do it only for genuine reasons. If the life insurance policy has been purchased with an intention to defraud creditors, the protection under MWP may not work. Creditors can assert their right to get paid out of the proceeds of the life insurance policy.

According to a veteran life insurance agent, “MWP policy sales have reduced over the years after estate tax and gift tax were abolished in India. Very few customers go for it today.”

Why go for it? 

  • A MWP insurance policy is free from creditors and court attachments. The welfare of wife and children are protected with utmost care
  • A policy under MWP Act is a good feature for families that have debt
  • MWP act is applicable for all married women of all religions
  • There is no need for creating a Trust under the Trust Act. The policyholder has the option to change the trustees at any point in time

Why not go for it?

The policyholder of a MWP policy loses all control over the policy with the exception of paying premiums. The policy becomes a trust property (wife and/or children)

There can be no changes to the policy without the consent of the beneficiaries

The beneficiaries of the plan, once declared, cannot be changed at any time

The proposer cannot take any loan or assign the policy to another person

The policy maturity, surrender value will go to the trust (and hence the beneficiaries only).



Sandeep Sapre

1 year ago

What if a person absolutely assigns the policy in favour of his wife instead of going under MWP way? What is the legal difference?


1 year ago

what will happen to the sum assured on maturity if the person has divorced the wife (who is the beneficiary).


3 years ago

Dear All,

I know this is quite an old article; people may have not seen it for sometime. Yet, I am hoping I'll get an answer.

My question is - can an existing policy be registered under MWPA?

If no, why?
If yes, why?

Also, if yes, then, can this wonderful provision also not be misused to defraud creditors?

Hope someone will be able clarify these doubts.




In Reply to Harish 3 years ago

Dear Mr Harish,

The answers are in the article -

1. The procedure is simple, but it has to be done at the time of buying the policy.

2. Before you jump in to go for Section 6 of MWP, do it only for genuine reasons. If the life insurance policy has been purchased with an intention to defraud creditors, the protection under MWP may not work. Creditors can assert their right to get paid out of the proceeds of the life insurance policy.

The idea is that the welfare of wife and children are protected with utmost care.

The reason why is it not popular -The policyholder of a MWP policy loses all control over the policy with the exception of paying premiums. The policy becomes a trust property (wife and/or children)


4 years ago

lucid and useful


4 years ago

Thnks a tonne Raj, but can u pls explain the following with simple ez:

• A MWP insurance policy is free from creditors and court attachments. The welfare of wife and children are protected with utmost care

thnks once again.


Milaap Microfinance

4 years ago

Thanks to the Author Raj Pradhan for the great information. Hope this will help to aware a number of people to take advantage of the MWP Act as many don't even have a clue of such a law exists.

Mehboob Charania

4 years ago

please note that MWP can be added anytime even after the policy taken



In Reply to Mehboob Charania 3 years ago

i think can not added anytime after the policy taken add only when submit proposal


4 years ago

This good provision has been in existence for many years now but very people take advantage of it, Thanks Raj for making your readers aware of it.
However I would like to add that now many husbands are now hesitant to take this policy on their wives(MWP) name taking into account the high divorce rates in mew marriages!



In Reply to DEEPAK KHEMANI 4 years ago

very true


4 years ago

Thanks for the informative article. I would mention an interesting case in regard to MWP. A wife covered under the MWP , wanted to raise a loan against the policy to pay for the treatment of her husband who was seriously ill. The request was refused, as no loan can be granted against such policies.
A very considerate bank officer chose to grant a loan against the policy, on the commonsense ground that it is important for the wife to have her husband nursed back to good health. Of course , there was audit objection and the officer was cautioned.



In Reply to Krishnan 4 years ago

thanks for your feedback

Now, Yashwant Sinha demands Gadkari's resignation

Sinha's demand once againg brought alive the campaign initiated by the Jethmalanis for the resignation of BJP President Gadkari

New Delhi: The campaign for the resignation of Nitin Gadkari, the beleagured president of Bharatiya Janata Party (BJP) on Tuesday got fresh ammunition with senior leader Yashwant Sinha demanding that Gadkari step down immediately, reports PTI.
"Whether our party president is guilty or not is not the issue today. The issue is that all of us in public life should be beyond reproach," he told PTI.
Sinha's demand brings alive once again the campaign initiated by BJP Rajya Sabha MP Ram Jethmalani and his son Mahesh for the party chief's resignation in the wake of reports of alleged dubious financing of Purti Sugar and Power Group.


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