QNet: EOW tightens rope around agents, meeting places

After applying the stringent MPID Act in the QNet case, the EOW has arrested a top leader for conducting a training session for the MLM scheme. The Mumbai police has even asked Cafe Coffee Day-CCD to shut its doors to representatives of the controversial MLM operator and all its associate companies

 

The Economic Offences Wing (EOW) of the Mumbai Police is tightening the rope around QNet, the controversial multi-level marketing (MLM), its exclusive franchisee Vihaan Direct Selling (India) Pvt Ltd, QNet Ltd (Hong Kong), Transview Enterprises India Pvt Ltd and Vanamala Hotels, Travels & Tourism Services Pvt Ltd and all its agents. The EOW also arrested Tarun Ratnani, a top leader from QNet, while he was conducting a training session at Andheri in Mumbai on Sunday.
 
Earlier, following directions from the EOW, popular coffee shop chain Cafe Coffee Day (CCD) has banned representatives of QNet, Vihaan and all its associate companies from operating from its coffee shops. A notice pasted by CCD at all its outlets in Mumbai, reads: "As per instructions received from Economic Offence Wing- Crime branch, Mumbai and Additional Police Commission of EOW Mumbai, entry is prohibited for representatives, staff and employees of Vihaan Direct Selling, QNet, Transview Enterprises and Vanamala Hotels, Travels & Tourism Services. NOTE: We are not associated with the above mentioned in anyway." Coffee shops such as CCD and Barista have been regular haunts for the hardsell of QNet schemes and, in what seemed to be a tacit understanding with the staff, they were allowed to hang around for hours without placing any order.
 
According to a report from Mumbai Mirror, Ratnani, who has been associated with the company for the last three years, was caught red-handed by the EOW team while holding a training session for dozens of people at a hall in Andheri. According to EOW officials, on Sunday the workshop was being conducted at Kentstar Hall, near Fun Republic multiplex in Andheri. Ratnani, along with around 70 people, had assembled in the hall at 10am for the training workshop. The owner of the hall told the newspaper that the premises were being regularly used since August, and so far six workshops were conducted on weekdays as well as weekends.
 
Quoting an official from EOW, the report says, Ratnani was found involved with QNet for past three years and had collected profits worth Rs50 crore. Ratnani's BMW is also seized by the police.
 
Last week, the EOW booked 19 accused including Michael Ferreira, the former world champion of billiards and five companies related with QNet, under the Maharashtra Protection of Interest of Depositors (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).
 
Commenting on the EOW move, Zaheer Merchant, legal head and director of corporate affairs at QNET, in a statement said, “It is really unfortunate that the police have chosen to take this drastic step despite the fact that QNet and its India franchisee Vihaan have been fully cooperating with the investigation. We will challenge this legally to protect QNet, its employees and customers’ interests.”
 
Ferreira, the former world billions champion, has been under the EOW scanner following the exposure of the QNet MLM scam. Ferreira owns 80% stake in Vihaan Direct Selling that handles QNet's MLM operations in India since 14 April 2012.


In August 2014, the EOW while making a sensational disclosure has told the Sessions Court that a document submitted by the seven QNet leaders in their anticipatory bail application was bogus and concocted.


According to EOW, the team leaders of QNet, including former world billiards champion Ferreira, Srinavas Rao Vanka, Magarlal Viravali Balaji, Malcolm Nozer Desai, Navjyot Mahesh Das, Chinar Surendra Shinde and Mereilla Kamal Dutta have misled the Court by submitting a fake document while seeking bail. This is in connection with various charges made by the intrepid whistleblower Gurpreet Singh.


The EOW of Mumbai Police, which is probing the MLM fraud, had so far arrested 19 team leaders of QNet for allegedly duping investors by offering to sell products such as magnetic disks, herbal products and holiday schemes through fraudulent practices. The accused have been charged with cheating and forgery under relevant sections of the Prize, Chits and Money Circulation Schemes (Banning) Act 1978.


Another interesting aspect in the whole episode is all top officials (?) of QNet India do not want to reveal their identity and remain hidden. We repeatedly sent emails to the company's official PR agency and also some officials from its parent QI group. Till date, neither the MLM company nor its PR agency is ready to reveal identity of its top management or leaders in India.

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COMMENTS

gurupreet

1 year ago

💥📣 HYDERABAD QNETSCAM victims meeting update 📣💥
Dont REGRET later if you miss this meeting, for which we are taking special efforts.

Please gather tomorrow i.e Sunday 23rd of July 2017 sharp 11AM at Sudarshan 35MM, RTC Cross Road, CHIKKADPALLI, HYDERABAD..
For answers to your questions

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 by 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 coming Sunday i.e 23rd of July 2017 is the BIG DAY finally , Please do join us at 11AM at the above mentioned address and the location is also attached here with.

Please do come and also inform other victims of the QNETSCAM in Hyderabad, Telangana and Andra Pradesh.

For details WhatsApp me on 7498063701 or call on +918978700018 and speak to Mr. Raghav.

Please pass this important message on all WhatsApp groups, Facebook and Twitter etc so all victims of QNETSCAM in Hyderabad and around can attend.

Those who are attending please confirm in advance as we have limited capacity only🙏

Jai Hind

jitu moni

2 years 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

2 years ago

GOOD NEWS...QNET VICTIMS IN MUMBAI...DEDICATED QUESTIONS & ANSWERS SESSION FOR QNET VICTIMS on Sunday 18th September 2016.

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 allotment..so make sure to reach in time __/\__ . You can contact on 7498063701 in case of difficulty in locating us :)

Jai Hind.

jitu moni

2 years ago

http://timesofindia.indiatimes.com/city/hyderabad/4-persons-associated-with-MLM-company-arrested/articleshowprint/54204335.cms?null
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 years ago

http://timesofindia.indiatimes.com/city/hyderabad/4-persons-associated-with-MLM-company-arrested/articleshowprint/54204335.cms?null
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 years ago

http://zeenews.india.com/news/maharashtra/qnet-case-sc-directs-maharashtra-govt-to-file-latest-probe-report_1924693.html
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.
ANI

jitu moni

2 years ago

http://www.newsambit.com/eow-of-delhi-police-registered-case-against-qnet-india-and-its-irs/
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 www.unetindia.in and www.cmetindia.net 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

Dev

2 years ago

http://www.deccanchronicle.com/nation/crime/160616/another-multi-level-marketing-scam-hits-hyderabad-100-people-duped.html

After receiving the complaint from a group of people, the central crime station is now investigating the scam.
Company officials asked them to pay around Rs 1 lakh as charges for registration, investment and training fee. (Representational image)
Company officials asked them to pay around Rs 1 lakh as charges for registration, investment and training fee. (Representational image)
Hyderabad: A new multi-level marketing scam (MLM) has surfaced in Hyderabad with around a 100 victims losing money in the controversial QNet scheme.

Several people have come out alleging that they have lost lakhs in the dubious scheme and has demanded arrest of the managers, who have fled with crores.
After receiving the complaint from a group of people, the central crime station is now investigating the scam. The Singapore-based QNet Private Ltd had already run into trouble with the law in Bengaluru and Mumbai police due to the same scam.

The victims, mostly fresh graduates and college dropouts, alleged that they were lured by some people claiming to be company officials who offered them a high salary and commission to do ‘e-commerce’ for QNet products.

Company officials asked them to pay around Rs 1 lakh as charges for registration, investment and training fee. However, the QNet officials neither provided them any job nor gave back their money even after a year.

After several complaints poured into S.R. Nagar police station cops found out that a QNet office was operating in Ameerpet, where most of the victims had paid their money. An FIR was registered in S.R. Nagar police station against company officials and later it was transferred to CCS.

“A person named Ramesh Kurmetti and his associates run the firm. He and others had been avoiding us for the last one year whenever we asked our money back,” said P. Vishwa Teja, one of the victims from Ameerpet.

The youngsters came to know about the company through Facebook and by word of mouth. “We were told that we will be getting around Rs 30,000 as salary as we add more customers and agents into the scheme. They asked us to get trained and promised that we would be selling their products like Bio Disc, Bio Light etc. However, nothing of that sort has happened so far,” said another victim M. Avinash.

Many people have paid Rs 2 to Rs 3 lakh while some paid Rs 1 lakh. The company officials had promised their commission would be higher according to the investment they put in.

While it is yet to be calculated how much money has been looted by the company officials victims claim that it would be around Rs 5 to Rs 8 crore.
Meanwhile, the police has not made any arrest so far in the case.

“We had registered a case after taking the complaint. Since it was an economic offence with a lot of money involved the case was transferred to CCS,” said S.R. Nagar inspector Md. Waheeduddin.

jitu moni

2 years ago


jitu moni
24 minutes 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

2 years ago


http://timesofindia.indiatimes.com/city/mumbai/EOW-to-now-probe-celebs-role-in-QNet/articleshow/52333087.cms
Mumbai: The city's economic offences wing (EOW) is now looking into allegations that several Bollywood celebrities campaigned for the cheat firm, QNet, through advetisements or by promoting the schemes of the self-proclaimed marketing firm.

Gurupreet Singh Anand, complainant in the Rs 1,000-crore QNet cheating case, on Wednesday said at least four Bollywood actors promoted the Ponzi schemes at different times in the QNet's promotional programs in United Kingdom and Malaysia. He has submitted a 23-page letter wherein he has attached the celebrities' pictures promoting the programs.

"I have submitted letter and all the relevant information to the EOW on May 12. I am hoping some action soon," Anand told TOI. He alleged that the money was laundered from India to Hong Kong and Malaysia.

Anand was speaking at a press conference where suddenly a group of QNet sympathisers appeared with "I trust QNet" placards.. They were later asked to leave the conference room.

jitu moni

2 years 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

2 years ago

http://www.asianage.com/mumbai/cm-devend...
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

2 years ago

Mumbai police seeks Zee business help in probe of QNet
https://http://www.youtube.com/watch?v=RabPkRNutwU

jitu moni

2 years ago

http://timesofindia.indiatimes.com/city/...
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

2 years ago

http://timesofindia.indiatimes.com/city/...
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.

Amending Prize Chits Act

Who is behind this strange rush to legitimise MLMs?

 

At one end of the spectrum, we have lots of action against shady money collection schemes—whether in the guise of chit funds or recurring deposits. Subrata Roy of the Sahara Pariwar remains in jail since March. Pramatha Nath Manna, chairman of the MPS group, a shady chit fund operation, was arrested after years of defiance against SEBI’s action and being asked to shut down his operations in 2012. The investigation into Sharada scam has picked up speed and another major West Bengal operation, the Rose Valley group, is also facing regulatory action. 

 
At the other end of the spectrum are multinational multi-level marketing (MLM) companies like Amway, Herbalife, QNet and others, whose operations also fall foul of the Prize Chits and Money Circulation Schemes (Banning) Act (PCMC Act). They are lobbying hard to get the BJP-led government to amend the PCMC Act and legitimise their operations by granting specific ‘exemptions’ to some. These powerful, but always controversial, MLMs want the same status they enjoy in the US, although there is plenty of evidence, in India and abroad, that only a tiny sliver of distributors at the very top of the pyramid make money. 
 
Moneylife has taken the lead in exposing MLMs which make exaggerated claims to lure people. We have also pointed out that, far from dilution, the PCMC Act needs to be amended to empower the police, or other investigation agencies, to act before more shady MLMs siphon off the money collected from gullible consumers. 
 
Under the UPA government, it was the ministry of corporate affairs that was looking into dubious MLM companies, such as SpeakAsia, Qnet and dozens of others that had cheated investors. Sachin Pilot, as MCA minister, answered parliamentary queries on the subject. However, in the BJP dispensation, it is the department of banking and financial services which is apparently leading the effort to legitimise select MLMs. 
 
At a time when the finance minister was away on a long medical break and when the department of banking ought to be concerned about issues such as burgeoning bad loans and the urgent need to appoint chairmen of six nationalised banks, it is, indeed, surprising that amending the Act to legitimise MLMs seems a greater priority. It certainly raises questions about the transparency and probity that was promised by the prime minister in his election campaign.  
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COMMENTS

Agyat Vyakti

3 years 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 delhi by Ashwin Baluja and Prithvi Raj Grover http://qnetindiascam.blogspot.in/

Sushant Roy

3 years ago

http://www.DSA.org & http://www.wada.org & http://www.idea.co.in represent all direct selling companies. ICICI also supports direct selling and the law in India will give a clear cut understanding of what is a scam like sharda scam and what is business if direct selling.

REPLY

Agyat Vyakti

In Reply to Sushant Roy 3 years 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 delhi by Ashwin Baluja and Prithvi Raj Grover http://qnetindiascam.blogspot.in/

Scott Johnson

In Reply to Sushant Roy 3 years ago

These organizations are MLM lobbyists and MLM sycophants.

Sushant Roy

3 years ago

There are regular product buyers of Amway without being interested in selling them. You seem to have no understanding of economics and you also dont understand what the word scam stands for. If Amway is a scam then in that case all corporates and capitalism is also a big scam.

REPLY

Scott Johnson

In Reply to Sushant Roy 3 years ago

If there are little to no retail sales to non-distributors, the MLM is a scam. Amway is a scam, and it also has a RICO fraud tool scam. Sushant Roy seems to have no understanding of economics and he also doesntt understand what the word scam stands for. Amway is a scam, which does NOT make all corporations and capitalism a big scam.

Sushant Roy

3 years ago

Pricing is relative. There are products expensive than Amway in the same category. Same food in various restaurants are priced differently. You clearly dont understand market it shows.

REPLY

Scott Johnson

In Reply to Sushant Roy 3 years ago

Pricing is relative, retail sales to non-distributor customers are measurable. Amway's retail sales are close to zero, which makes Amway an illegal pyramid. The added tool scam makes Amway a RICO fraud as well: http://www.StopTheAmwayToolScam.wordpress.com

Sushant Roy

3 years ago

So dude you buy a coke today and then drink it half and your friend says that it has ph level so acidic with which you can clean your toilet and the amount of sugar is too much and the real manufacturing cost of the 200 ml drink is less than a rupee and you decide to return the bottle to thr shopkeeper and he refuses to take it is a real scam where in good direct selling companies take your concern im consideration and pay back your money as per law!

REPLY

Scott Johnson

In Reply to Sushant Roy 3 years ago

Comparing Amway to coke is nonsense, the problems are overpriced products which lead to little to no retail sales (illegal pyramid) and tool scams (RICO fraud): http://www.StopTheAmwayToolScam.wordpress.com

Sushant Roy

3 years ago

Neither binary nor generation plans are illegitimate; technically the problem is poor products or services without a guarantee. It is like a buy a product and also get a chance to do business but then the products are of poor quality and i dont want to promote then and the company refuses to pay my money back.

REPLY

Scott Johnson

In Reply to Sushant Roy 3 years ago

They are if there is little to no retail sales to non-distributors.

Rogier van Vlissingen

In Reply to Sushant Roy 3 years ago

If there is any form of MLM that is not illegal, it should be. see: https://http://www.imf.org/external/pubs/ft/fandd/2000/... and also http://timesofindia.indiatimes.com/busin... http://www.entrepreneur.com/article/2427... and http://www.arabianbusiness.com/bahrain-o...

Scott Johnson

In Reply to Sushant Roy 3 years ago

The problem is lack of customer sales and tool scams: http://www.StopTheAmwayToolScam.wordpress.com

Sushant Roy

3 years ago

I agree that companies like speakasia or companies which offer
huge interest rates are really fraud and fly by night companies and are scam artists.

REPLY

Scott Johnson

In Reply to Sushant Roy 3 years ago

Amway is also a scam, they just use slightly different techniques: http://www.StopTheAmwayToolScam.wordpress.com

Sushant Roy

3 years ago

Amway doesn't promise any readymade money without any hardwork and business turnover. Neither Qnet or Amway pays you without any turnover of goods or services.

Scam is only when you promise to pay and dont pay!

REPLY

Agyat Vyakti

In Reply to Sushant Roy 3 years 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 delhi by Ashwin Baluja and Prithvi Raj Grover http://qnetindiascam.blogspot.in/

Scott Johnson

In Reply to Sushant Roy 3 years ago

Amway lies, pure and simple. Scam is when you have overpriced products that can't be sold to external customers, and misrepresent business model/rip off people with tool scam: http://www.StopTheAmwayToolScam.wordpress.com

Sushant Roy

3 years ago

What about a job scam where you work for 40 years and the credit is taken away by the company owners? Isn't that a real scam?

You then live on your PPF pension which is peanuts.

In Amway or such companies you can pass your business legacy to your future generations. Where in a corporate job you seldom get a chance to be a ceo. In Amway or other such companies all distributors have equal chance to grow their own organisation.

The argument that only top few distributors make money is a lame argument comes from a communist mind set. In capitalism only top few get rich. The entrepreneurs become rich, those who work like jobber or salesman in network marketing company do not grow.

REPLY

Scott Johnson

In Reply to Sushant Roy 3 years ago

This is a common tactic, trying to change the focus off of MLM scams and compare to jobs. 40 year jobs make money for the employee, almost all in MLMs at any given time are operating at a net loss. The "legacy" and "CEO" claims are mere emotional hooks, not based on facts. The lame argument is that MLM is legitimate. LOL

Scott Johnson

4 years ago

I guess the Amway India CEO isn't the only scam artist on the radar. Most MLMs operate similar to Amway, the largest MLM scam on the planet: http://www.StopTheAmwayToolScam.wordpress.com

jitu moni

4 years ago

Lets spread it friends

http://www.business-standard.com/article...

Two top representatives of QNet, a Hong Kong-based multi-level marketing company allegedly involved in a Rs 425-crore fraud here, were arrested today after being picked up from Delhi international airport, police said.

The controversial company's senior independent representatives, identified as Sandeep Kalra and Hitesh Miglani, were intercepted by immigration authorities at the Indira Gandhi International Airport at Delhi last night, said an officer with Mumbai Police Economic Offence Wing (EOW).

The duo, who arrived from Dubai in separate flights, was stopped at the airport as Look Out Circulars (LOC) were issued against them by the EOW probing the case.

The two suspects, who were suspected to have had pocketed lakhs of rupees through the scheme and organised several training camps to lure investors, have been subsequently brought to the metropolis and placed under arrest this evening, police said.

The LOCs have been issued against those whose statements have been necessitated in the probe but did not appear before the investigators despite summons.

Kalra hails from Delhi while Miglani is from Bangalore, police said adding that this is the first arrest of those against whom LOCs had been issued.

The EOW had earlier arrested 15 persons for allegedly duping investors by selling QNet products, including magnetic disks, herbal products and holiday schemes, through allegedly fraudulent means.

The EOW has invoked the stringent Maharashtra Protection of Interest of Depositors (MPID) against the company which has denied any wrongdoing on its part.

QNet has also been accused of using the banned binary pyramid business model. An FIR in the case was registered in August in 2013.

The accused had been charged with cheating and forgery under relevant sections of the Prize, Chits and Money Circulation Schemes (Banning) Act, 1978.

Siksha

4 years ago

thanks for taking the action quickly.. I hope it stops soon to save hard earned money of middle class families.. why donn you announce like a head line in popular news paper(TOI) or local news papers like mumbai samachar & gujarat samachar to not to indulge any of such businesses.. people are not aware enough about Qnet

gurupreet

4 years ago

no government will ever legitimize PYRAMID schemes like QNET :)

Ashish

4 years ago

Multi Level Marketing or Network Marketing is a beautiful Industry which provides livelihood to millions across the world. Although the popular perception is that only a few people earn money. the same is not true in a genuine legitimate MLM Company where everyone who sells the products of the Company earns money. Yes, some make more money and some less but it does not matter in a genuine MLM if you are the first person to join or join later, everyone has an equal opportunity to earn. Everything around you is a pyramid, be it the Government, or the Company you work for. Only few people are at the top. Does that structure make something illegal.

Yes, MLM has garnered a bad name but only due to the acts of certain crooks who use the guise of MLM to cheat people like Speakasia etc.

REPLY

Siksha

In Reply to Ashish 4 years ago

So some one has cheated you. so you are trying to cheat others to recover your loss by writing such beautiful lines.. shame on you all who are desperate to trap their own relatives & friends..

MOHAN

In Reply to Ashish 4 years ago



Kindly let me know the "beutiful" "legal" MLM you belong to

Tex

4 years ago

There is cause for some optimism. India slams Amway and the DSA, AGAIN! See http://indianexpress.com/article/india/i..., which states, in part, “…the Intelligence Bureau reported in 2012 that “fresh” illegal financial activities of chit fund companies were cheating lower middle class and poor people, especially in rural and semi urban areas. The proposed changes, prepared by Department of Financial Services (DFS), also drags in “pyramid marketing schemes” within the act with some safeguards to exclude selling of goods and services, but not those sales where there is no economic activity or addition of economic value save for creating a chain of new participants and distribution of economic benefits to the existing ones. The department has also turned down request of Indian Direct Selling Association (IDSA) – comprising biggies like Amway, Tupperware and Hindustan Unilever Network – to include direct selling schemes as an exempted category under Section 11 of the Act.”

Adooye.com, another MLM, shuts shop: report

The Bangalore Police are investigating Adooye.com, which was selling a ‘package' that promised money for watching online advertisements and enrolling new members, in a classic money circulation scheme. The MLM, which reportedly collected over Rs600 crore has quietly shut shop and left over two lakh registered customers in the lurch

 

Adooye.com, (ADooye) a supposedly US based website, that was selling 'packages' with a promise to pay for watching online advertisements and adding more members to the network, has gone burst, say media reports. Some victims, who 'invested' crores of rupees have filed a complaint against the multi-level marketing (MLM) company at Bengaluru.

 

In June 2014, Moneylife had warned about the risky 'business model' of ADooye similar to other strings of MLMs like Speak Asia, Fanbox, Empower Network, QNet and other pyramid and Ponzi schemes.

 

According to Times of India report, Kreetam Associates, the litigation firm fighting on behalf of the victims, had filed a first information report (FIR) against ADooye and Bangalore police are investigating the case. "The company stopped paying returns in August around the time it was changing the website layout. The site closed down early September and the company doesn't exist anymore and there is no one to contact," Vasanth Aditya, managing director of Kreetam Associates, told the newspaper.

 

Quoting Vasanth, the report says, ADooye.com has collected over Rs600 crore.

 

Moneylife investigated this company when a worried reader wrote to asking to look into their credentials. Their website states that ADooye is founded by Australian Mathew Reichgruber and Alessandro Sen, and marketed by Delhi based AD Marketing. This affiliated marketing company, which operates like an MLM sold various 'packages' containing online advertisements, on viewing which the member was rewarded.

 

Apart from this, ADooye earned more income from selling various expensive 'packages', which were nothing but login access to view 10 advertisements daily for 140 days, to its registered members. They have had a built network with the help of paid members who generate web traffic, when even for showcasing advertisement they charge money from its members.

 

Here are comments from some of our readers on earlier article...

 

"Dear Friends, before joining in Adooye I had lots of query and discussion with the Leader at Bhubaneswar, Odisha and finally I was agreed when received a PDC cheque and put Rs2.5 lakh. After received only Rs20,000 now it is vanished. For that I communicated with Local police, Cyber crime and also send information thru mail to our Prime minister Narendra Modi by describing the MLM. We need to raise our strong voice which will put impact to this type of ****ards."

 

"My friends have lost almost 4 lakhs rupees investing on Adooye. We are still waiting for the payment don’t know when will we receive the money back."

 

"Again a company arise to loot innocent people’s money. Beware friends do not get involved in this MLM company and waste your money. Do not become greedy and invest your hard earned money in any MLM Companies. They will show you dreams and take away your cash and vanishes like SpeakAsiaOnline, Qnet India and many more to name...........BEWARE. Remember My Words. Control your Greed. Don't Become a Pray."

 

"Once again Hat's Off to Moneylife for bringing into the open another MLM which will only milk the late comers to pay off the earlier members."

 

Moneylife has written several articles on frauds that lure people by floating various MLMs and frequently warned investors that “If it looks too good to be true, it usually is.”

User

COMMENTS

pruthvi

4 years ago

v can 22 is also a one of the fack company

ramesh

4 years ago

http://www.naswiz.com/
another company which is about to cheat people beware guys

Shekar Shekarm

4 years ago

http://www.icardlife.com/
another company which is about to cheat people beware guys

Shekar Shekarm

4 years ago

http://www.vayok.com/
another company which is about to cheat people beware guys

Shekar Shekarm

4 years ago

http://www.adzooz.com/
another company which is about to cheat people beware guys

Shekar Shekarm

4 years ago

http://www.adzooz.com/
another company which is about to cheat people beware guys

Shekar Shekarm

4 years ago

http://www.adzooz.com/
another company which is about to cheat people beware guys

Shekar Shekarm

4 years ago

http://www.adzooz.com/
another company which is about to cheat people beware guys

Shekar Shekarm

4 years ago

http://www.adzooz.com/
another company which is about to cheat people beware guys

Shekar Shekarm

4 years ago

http://www.adzooz.com/
another company which is about to cheat people beware guys

sonumanju

4 years ago

Feel free to Contact us
[email protected]
Copyright © Adskye2014 - All Rights Reserved.
09738085688/09738085509

NEW COMPANY CAME TO CHEAT PEOPLE BEWARE OF IT...
ADSKYE.BIZ (ADOOYE.COM)

Feel free to Contact us
[email protected]
Copyright © Adskye2014 - All Rights Reserved.
09738085688/09738085509

Sunil Pratap

4 years ago

What is surprising is the sluggishness of the persons who were cheated to get to the bottom of this mess!! We suggested they go to the Banks where the deposits were made & demand account details as a first step & then approach the Police....are the Banks also involved ????.....Surely they would have the KYC details of the accounts opened by Adooye.com ??? So guys wake up & press ahead if you want your money back....or at least get those responsible identified so they can be dealt with......

Sunil Pratap

4 years ago

What is surprising is the sluggishness of the persons who were cheated to get to the bottom of this mess!! We suggested they go to the Banks where the deposits were made & demand account details as a first step & then approach the Police....are the Banks also involved ????.....Surely they would have the KYC details of the accounts opened by Adooye.com ??? So guys wake up & press ahead if you want your money back....or at least get those responsible identified so they can be dealt with......

Sunil Pratap

4 years ago

What is surprising is the sluggishness of the persons who were cheated to get to the bottom of this mess!! We suggested they go to the Banks where the deposits were made & demand account details as a first step & then approach the Police....are the Banks also involved ????.....Surely they would have the KYC details of the accounts opened by Adooye.com ??? So guys wake up & press ahead if you want your money back....or at least get those responsible identified so they can be dealt with......

Sunil Pratap

4 years ago

What is surprising is the sluggishness of the persons who were cheated to get to the bottom of this mess!! We suggested they go to the Banks where the deposits were made & demand account details as a first step & then approach the Police....are the Banks also involved ????.....Surely they would have the KYC details of the accounts opened by Adooye.com ??? So guys wake up & press ahead if you want your money back....or at least get those responsible identified so they can be dealt with......

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