QNet, the MLM has resurfaced in India; will people be duped again?

QuestNet and GoldQuest, which all but closed down in 2009, have emerged bigger and stronger as QNet.  But the hype and hard-sell by this MLM company to ensnare people into enrolling distributors and hawking lifestyle products such as watches, gold coins, bio-discs, herbal products and travel packages is worrying. Will it also go the SpeakAsia, Stockguru and NMart way while regulators do nothing?

 
QuestNet and GoldQuest, multi-level marketing (MLM) companies that had shut shop in 2009 following police action are back with a bigger bang. They now calls themselves QNet and is thriving in an environment where tens of thousands of Ponzis and MLM companies are able to lure people into believing that they have the formula to instant riches and a high growth career. 
 
While QuestNet and GoldQuest, which mainly sold numismatic gold coins (they claimed they were limited edition coins that whose value would increase over time) in 2009 were forced to shut shop in India, their new avatar QNet offers a broader range of lifestyle ‘enhancing’ products (holiday packages, diamond watches, bio-discs, Chi-Pendants and herbal products for anything between Rs30,000 to Rs7 lakh), which promise fabulously high returns so long as new distributors are enrolled rapidly. Its product brochure says, “With 8 ways to earn and up to 50% of the sales paid out in commissions, QNET offers the most dynamic and innovative compensation plan in the direct selling profession.”
 
 
Like SpeakAsia, QNet is also registered in Singapore and has been banned in many countries, including Iran. It has a Hong Kong-based founder Dato’ Vijay Eswaran, a Malaysian by birth and an Indian by ethnicity, who is photographed hobnobbing with the Prince of Saudi Arabia, in order to enhance its credibility in the Gulf. 
 
The last time around, QNet was being evangelised by former World Billiards champ Michael Ferriera, as well as some former national cricketers. This time, it is being hard-sold by senior corporate executives, including heads of multinational companies, who have been forced to quit in the 40s and 50s, having fallen off the career ladder. Moneylife has received emails from several worried readers asking us to bring the “QNet scam” to the attention of regulators before it dupes their friends and relatives already ensnared by the hard-sell.
 
One reader says, “QNet dealers are now targeting call centre employees, IT professionals and housewives on the promise of helping them earn extra income.” “QNet,” he says, “has small office, which it refers to as a “Grooming Centre” at Bandra in Mumbai. Its dealers and agents, however, rent out conference facilities for their rousing hard-sell which, like the Amway meetings, usually happens on a Sunday morning. To become member, you have to buy products—exquisite watches, holiday package, Chi-Pendants, gold and diamond jewellery—which are in the range of Rs1 lakh to Rs2.5 lakh and then to start earning commission; you have to make six other people to buy products”. But this is the simple option. The ‘packages’ go up to Rs6 lakh or more too. Also, there are apparently different schemes and packages being sold to different investors, rather than one clear product or service. 
 
For instance, Anil Mehta (name changed) a certified financial planner has this to say. “QNet is projecting that it can create over lakh billionaires through its Ponzi scheme. All you have to do is to invest once—say Rs5lakh and you will get back Rs 5lakh every week for the rest of your life. I know you will laugh, but this is exactly what they are projecting”. He says, since they claim to be a global company, they have managed to get bank managers, software professionals and insurance agents to get involved and evangelise this scheme. 
 
Manoj Arora (name changed), a chartered accountant and management consultant tells us how he decided to string along a QNet ‘operative’ to understand its modus operandi which promises to make you a millionaire in two or three years. 
 
He was scandalized at what he discovered and says, “QNet is just not about Amway-esque MLM but a Stockguru-type pyramid scheme. The premise is to get more and more people to invest Rs1 lakh to Rs6 lakh in an 'e-commerce' venture. They make you owners of QI group by selling three shares for every Rs1 lakh. How does that generate returns? The victims who are enrolled into the scheme, in turn hunt for newer victims to buy into the Ponzi. They are entitled to get 14% of share capital they or their victims raise. The scam is proliferating through social media like Linked-in to find newer targets. This reader had stored names and screenshots of people canvassing QNet from their profiles on Linked-in. 
 
Amrit (name changed), yet another reader wrote to say, “I was very recently approached by an ex-colleague with one wonderful scheme by QNet and he explained the products and plans of the company. I signed up for it on the basis of my trust in this friend. However, after joining I observed that the company is promoting its money-making plan by targeting the near and dear ones of those who has enrolled. I am now a suspicious about the activities of QNet and its functioning and skeptical about the manner in which they approach people. Can you tell me more about QNet?”
 
Well, the company had a chequered past. In 2008-09 it was making waves like it is today. At that time, it flaunted powerful political connections (at that time a GoldQuest executive, K Preetha had said that Nalini Chidambaram was a legal advisor. This was after we pointed out that that the connection was highlighted at its meetings to recruit/ensnare new agents). However, QuestNet virtually folded-up after the Chennai police arrested several employees and the business was in completely disarray. 
 
At that time, QNet’s Singapore-based Director of Corporate Affairs, Zaheer K Merchant had attempted to convince us that the business model was fair and in line with the activities of other direct marketing and MLM companies such as Amway, Tupperware and other multinationals which were members of the Indian Direct Selling Association. He also tried to explain the problems at Chennai.
 
Interestingly, QNet’s response was to organise a junket for journalists to Hong Kong to show that the company was not running a ‘scam’. This writer also received an invite, which we DID NOT accept. J Mayer, the Managing Director of QI Group had then written to say, “I believe that you are familiar with the names QuestNet and GoldQuest which have been in the media spotlight in Tamil Nadu and other areas of India for about a year or so.  Unfortunately, I am aware that the names QuestNet and GoldQuest do not have a positive image in the minds of either the media or the general public at this present moment.
 
Due to the legal challenges that both the companies have been facing, in India for over a year now it has unfortunately led to both companies being forced to halt their operations and temporarily close down their offices. However, the companies are by no means non-existent. Thus the MD of QuestNet India, Ms Pushpam Appalanaidu has not been in any position to make media statements or invite the media to an open forum to answer questions about the two entities.
 
As we continue to defend our case in the court of law to prove our legitimacy, we would like to take the opportunity to show you that QuestNet and/or GoldQuest are not a ‘scam’ or a ‘gold coin fraud’ company as it has often been portrayed in the press this past year.
 
QuestNet Ltd, the international company with which QuestNet India is affiliated is headquartered in Hong Kong and through representative and agent offices, has a presence in over 30 countries worldwide. The international company has been in the multi-level marketing business for about 11 years and caters to the needs of over 4 million customers in more than 100 countries worldwide who have taken advantage of the business opportunity provided by QuestNet to be a direct sales professional.
 
In order for us to show you the real face of QuestNet and share with you the story of the company that has changed millions of lives worldwide, we would like to invite you to visit our corporate headquarters in Hong Kong, where you can see for yourself our global infrastructure, meet with our multinational customer support team, go on a tour of our facilities including our warehouse from where thousands of products are shipped worldwide on a daily basis, meet with the senior management of QuestNet International  and learn about the investments the company has made in India with a view of long term commitment to the country”.
 
This time too, we reached out to QNet and Mr Merchant has agreed to answer all out queries. Accordingly, Moneylife has emailed several questions to QNet and we are awaiting answers which will be appended to this report. 
 
Since then, Moneylife has done extensive work on all MLMs and come to the conclusion that all of them fall foul of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.  We have also made representations to the Prime Minister’s office to ban MLMs altogether or allow them to operate under a clear regulatory framework under a designated regulator. 
 
Today, while tens of thousand MLMs and Ponzis are cheating people no ministry or regulator is in charge. The ministry of corporate affairs (MCA) does not even require these companies to be incorporated in India. This ludicrous situation persists at a time when there is such heated debate about legitimate foreign direct investment in retail and insurance. 
 
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COMMENTS

Mukesh Tripathi

10 months ago

When it comes to scams and deceiving people, no one can hold a candle to Qnet. Formerly known as QuestNet, GoldQuest, and QI Limited, is a Hong Kong-based multi-level marketing (MLM) company owned by the QI Group. Qnet been charged with serious fraud and multi level marketing in countries such as India.https://www.webactivism.com/qnet-investigation-scams-fraud-fraudulent-attempts-cover-tracks/

HYG HYU

1 year ago

Dear Gurpreet, how to get justice when many people are in Bangalore? Any support, any helpdesk, anyone representing here? It's sad that I've lost all my money putting my parents and myself in trouble. :(

REPLY

gurupreet

In Reply to HYG HYU 1 year ago

The chief minster of karnataka is personally involved In the scam for bless

HYG HYU

In Reply to gurupreet 1 year ago

Look at the sadness of people in this state then, those who are duped by QNET.
The torture they had given everyday after my office and taking away my weekends!!

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

gurupreet

1 year ago

#QNETSCAM & SUPREME COURT MATTER UPDATE - Please read till the end.

Dear Members,

Jai Hind to all. As you are aware I have had fought the QNET SCAM since last 4 years and devoted all these years full time towards taking effort to expose the QNET SCAM because of which millions of innocent people in India are loosing thier hard earned money and due to my efforts the #QNETSCAM had almost come to a stand still.

This fight has had taken a HUGE effort and affected my personal and professional life beyond what can be explained here, though all cases in which I appeared had verdicts coming in favor of the victims of #QNETSCAM

In Bombay High Court and the Supreme Court I have faced the best and most expensive lawyers in India like Mahesh Jhetmalani , Kapil Sibbal, Salman Kurshid , Dushant Dave etc but they could not protect the accused involved in the #QNETSCAM till recently when...

These accused cheated and played FRAUD upon the Supreme Court and obtained an stay order on all proceedings against QNET all over India. It is very very Important for all of us to come together and unite so that this fraud can be exposed and correct facts are brought before the Supreme Court.

To carry forward this fight further I need to move to Delhi and need support from you all without which this fight will come to an end. I request Donations from you all for fighting this #QNETSCAM which is destroying lifes, families and careers and thousands of crores are being laundered out of our country India.

I request donations and the same can be send thru Bank transfer or deposits in my bank account number as below:

Account number: 32280724593

BANK:
state bank of India, Lokhandwala branch


IFSC: SBIN0013204


Name as in bank records: Gurupreet Singh Anand

You can also donate via Paytm on 7498063701. Any donations big or small are welcome.

Other help in form of a place to stay in Delhi and if anyone has an extra activa or similar gear less two wheeler which I can use is also welcome. If you think you can help in any other ways please whatsapp me on 7498063701

Regards

Gurupreet Anand



Please pass this message to all groups, Facebook, Twitter, activists, members and victims of QNETSCAM, please join the fight in exposing the biggest ponzi scheme in India and stop the money being laundered out of our country



Vande Matram

gurupreet

2 years ago

QNET VICTIMS please beware of this shady character one Mr. Rafiq whose posing as an "High Court Advocate & RTI Activist" at various online web sites.

This guy is a sweet talker and will promise you refund from QNET if you appoint him as an advocate, he is doing nothing but cheating your further...here is his modus operandi...

He also claims to be behind several actions that have been taken place by mumbai police and FFVA but the FACT remains that he has nothing to do with any of these actions being taken all over India.

He will convince victims to appoint him as an ADVOCATE and thereafter tell victims to deposit Rs 50,000 in various bank accounts to show that he has been apponited.

He will promise that he will return back the money after showing that to QNET office but the FACT remains that after the money is transferred he will stop recieving your calls and vanish .

We have recieved multiple complaints against this FRAUD, please BEWARE you all have already been cheated dont get cheated again.

For your REFUNDS only follow the correct and LEGAL way to get your refunds along with compensation, for more info do drop us a email at [email protected]

FFVA i.e Financial Frauds Victims Association has been formed to help and provide legal aid to victims of QNET SCAM.

http://www.mid-day.com/articles/qnet-forms-financial-fraud-victims-forum-scam-gurupreet-singh-anand/17659179

Please stay away from crooks and fight for your legal rights in correct and proper way.

Regards
Gurupreet

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://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

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

jitu moni

2 years 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

3 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

3 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

3 years ago

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

jitu moni

3 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

3 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.

jitu moni

3 years 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

MLMs continue to loot and scoot while police, regulators act like mute spectators

MLMs like SpeakAsia and NMart thrive because the police and regulators like RBI, SEBI or IRDA, instead of taking prompt action, sit on their heads waiting for a formal complaint from duped investors, which happens only after promoters vanish with crores of rupees

 
Every other day, there is news about people getting cheated through “earn-double-money” in less than a year run under the multi-level marketing (MLM) model. While the ministry of corporate affairs (MCA) appears to have woken up by the financial mess and menace created by thousands of MLM companies, the watchdogs or regulators who have the powers to stop all this, on several occasions, are found to be merely watching things as mute spectators.
 
Take for example, SpeakAsia and N-Mart. While SpeakAsia conned lakhs of people by promising multiple returns on the ‘investment’ by just filling up mundane surveys, N-Mart promised huge ‘income’ just by becoming its members and purchasing daily need items from its branded shop. The promoters of SpeakAsia are absconding, while N-Mart promoters were not so lucky. 
 
Due to prompt action by Vijaywada-based activist Shyam Sundar and his organisation Corporate Frauds Watch and the Andhra Pradesh (AP) Police, promoters and directors of NMart are cooling their heels behind bars. Last month, the AP High Court dismissed a writ petition filed by NMart promoter Gopal Singh Shekhawat. But more about Shekhawat and his N-Mart later.
 
Over the years, we at Moneylife had exposed several such fraud MLM or ponzi companies and alerted readers about these fly-by-night operators. At the same time we also informed the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Insurance Regulatory Development Authority (IRDA) about these companies. Unfortunately, except on few occasions, these regulators neither replied to our communication nor have they initiated any action against these fraudsters.
 
What is more shocking is that some of the known MLM operators are found sidelining prohibitory orders of SEBI. Take for example, despite SEBI’s order issued dated 9th July, Jaipur-based NGHI Developers neither stopped collecting money from people nor did it refund any amount. The company was collecting funds from the public for developing plots of land through its plans, terms as collective investment schemes (CIS) by SEBI.
 
The CIS, where an entity pools in money from investors for certain pre-specified purposes and later distributes the profits or income, come under the ambit of SEBI. While hundreds of companies have engaged in CIS activities in the country, just one such entity is registered with SEBI to undertake such kind of business.
 
Some of the most common CIS are related to investments for real estate properties, plantation and agriculture industry, art funds, time-sharing schemes and multi-level marketing (MLM) schemes, among others. As per SEBI data, more than one lakh investor complaints are currently pending with it in connection with such schemes, and the matter is sub-judice since long in most of the cases.
 
Moneylife first exposed the lies of SpeakAsia in October 2010 . However, due to inaction by the regulators, the company grew very rapidly. In fact, within a short span of eight months, it claimed to have enrolled over 20 lakh members. While India’s total investor population has fallen to 80 lakh, SpeakAsia managed to lure about 20 lakh people into its get-rich-quick scheme. But nobody really bothered to look into the case until some TV news channels stepped in and put pressure on the government to act.
 
Unfortunately, due to the lack of clarity in regulation and prompt and fast action, SpeakAsia officials, who were present in full force on 16 May 2011, later vanished. Except, the company’s chief operating officer Tarak Bajpai, all others including chief executive Manoj Kumar managed to escape. In fact, the SpeakAsia court cases are not being fought by the company but by some early (beneficiary) members under the banner of All India Speak Asia Panellists Association (AISPA).
 
Another such MLM company exposed by Moneylife is Kerala-based Royal Life. After keeping its shop shut for over two years, the network marketing company has again become active and is luring gullible people to invest in its schemes. Royal Life claimed to be a promotional arm of ALGA Marketing Pvt Ltd, which it said was a “unique and innovative marketing plan.”  Two years ago, Royal Life was found using the picture of Kerala chief minister Oommen Chandy. Currently, there is no image of Mr Chandy now but there are several images of people which the company claims to be some sort of “super achievers”. 
 
Coming back to NMart Retail and Gopal Shekhawat, this MLM also was able to gather over 15 lakh members in a short span. One of the reasons for this phenomenal growth was the use of popular TV stars in the company’s ad (http://www.youtube.com/watch?v=b33IERPzrf4). NMart used Jethalal and Daya, the two popular characters from TV serial ‘Tarak Mehta Ka Oolta Chashma’ in its ad. The use of popular actors from TV serials not only increased the member count for NMart, but also helped it to establish itself as ‘genuine’ retail company.
 
Unfortunately, NMart, its promoters and members fail to understand a simple thing, if it walks like a duck, talks like a duck then it is a duck. NMart seems to be collapsing under its own weight as happens with majority of ‘successful’ MLM schemes.
 
Some of the NMart members were seen claiming that its promoter Gopal Singh Shekhawat is the nephew of Pratibha Patil, former president of India. This was completely false. According to an email received by Moneylife from the President's Office, although both Ms Pati’'s nephew and the promoter of NMart share same name, they are not same person and Gopal Shekhawat, the nephew of Ms Patil is no where related with NMart. The email says, “Shri Gopal Shekhawat, nephew of the President is in Chandrapur near Nagpur. He is a School Teacher and has nothing to do with ‘NMart’. Only the names are similar.”  (http://www.moneylife.in/article/nmart-runs-cis-based-mlm-under-guise-of-a-retail-chain/18593.html )  
 
The question is when there are thousands of network marketing or MLM or ponzi or pyramid companies not only proliferating but also duping lakhs of gullible investors, why are the regulators behaving like the police from an old Bollywood movie. In any old Hindi movie, the police used to be last one to reach at the spot or climax. 
 
Last year, Moneylife Foundation, a non-governmental organisation (NGO) sent a representation to the prime minister, finance minister, finance secretary and governor of the RBI urging them to either completely ban MLM companies and schemes or bring them under the regulation of RBI or SEBI. 
 
Senior officials from investigating agencies have been saying that there are sets of people who move from one place to another floating a new MLM or Ponzi scheme. And yet neither the police nor the regulators do anything to arrest these known culprits. Earlier in February, SEBI decided to share names of over 500 MLM companies and their directors to MCA, so that necessary action can be taken to prevent these companies and persons from floating new business.
 
While the MCA has decided to the publish names of fraudulent MLM firms and the menace these companies create, the real question is why prompt action is not taken by the police and the regulators. One of the problems in this is (and told by several officials, unofficially) is the lack of a complaint. This means unless somebody files a complaint against a MLM company, the police do not initiate any action. However, this needs to be changed and instead of waiting for a formal complaint, the police and regulators like RBI, SEBI or IRDA should initiate suo moto action against MLM or companies that run unauthorised CIS schemes.
 
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COMMENTS

Sandeep Patel

6 years ago

What is the government doing about Q Net ... they are hosting the Davis cup too at Bangalore ?

CS Sundar Raju, Secratary of KSLTA, is also on the V Council plus they have the legal advise of Mr. Pinky Anand ... a Supreme Court advocate ..


http://blog.qnet.net/2012/11/qnet-in-the...

http://qnet.wpengine.netdna-cdn.com/wp-c...

MOHAN

6 years ago

Fraud chain breaks again

http://newindianexpress.com/cities/kochi...

Nilesh KAMERKAR

6 years ago

It is strange what money does to people and what people can do for money. These types of MLM or Ponzi schemes are difficult to identify at an early stage. They attract attention only after they have grown in size significantly.

We cannot call such MLM or Ponzi schemes as investments and those people who get lured by such schemes as investors. People who fling money mindlessly without applying commonsense are acting in a foolish manner, certainly not like investors. It is like calling people who buy lottery tickets - entrepreneurs.

Whenever someone promises abnormally higher returns, the question we need to ask ourselves is pretty basic and simple. Why? Why are higher returns being promised when cheaper means of raising funds are available for the one who is accepting money?
If the intention is never to repay then any promise looks small.

Any person who expects to get ‘abnormally higher returns’ in a relatively quickly is doomed to lose money; no regulator can protect these people who aspire to become rich quickly, simply by doing nothing.

There are two types of people who fall prey to these types of schemes:
1) Those who have lots of surplus funds and are therefore looking for mouthwatering opportunities, no matter what, and
2) There are those who do not have enough but want someone who can make them rich quickly

We do not have to depend on regulators or police to save us from these fraudsters. Remember. god helps those who help themselves. People can shield themselves from such crooks – by just refusing to part with their savings.

REPLY

Vineeth A Kumar

In Reply to Nilesh KAMERKAR 6 years ago

There are a third category of people, they do not join the company or its products but, they join their friends of lifetime.. later realize that the real friend we understand that the real friend is dead long time back.
I would be happy and very satisfied; if the regulators - remove any income to the sponsoring another friend.
Joining any company where they want should be the prerogative of the individual. eg X joins the company and fortunately he is just below your franchisee. In case the concerned upline trains this chap, help him to get back the initial capital in the shortest - only in such cases the upine qualify for real time incentive. this applies to each and every one...

Upline has to take charge of this newbies success...the same applies to the each & every one...!

This situation is the only way forward for MLM...

MOHAN

In Reply to Nilesh KAMERKAR 6 years ago

Many of the people who were cheated by MLM fraudsters are illiterate labourers and coolies.

Len Clements

6 years ago

There are legitimate, legal MLM companies and their are illegal pyramid schemes. Unfortunately many such pyramid schemes try to disguise themselves as MLM companies because they want to appear legal and legitimate.

I have worked as a consultant with MLM companies in India and your country is indeed overrun with pyramid schemes. So much so that even those companies run by honest people offering real products of value feel they must employ aspects of the illegal schemes to be able to compete.

MLM offers many benefits to those seeking to start a business and can provide a legitimate means to earn extra income. India should not follow the path of China and "throw the baby out with the bathwater" by banning all MLM operations. MLMs should be more regulated in India, absolutely. But not illiminated entirely.

REPLY

MOHAN

In Reply to Len Clements 6 years ago

Dear Mr. Clements,

You have not specified the name of the "LEGAL" companies in India you worked as a consultant. It will be helpful for the investors if you publish the names of such 'LEGAL" MLMs.

Nilesh KAMERKAR

In Reply to Len Clements 6 years ago

Strange logic this Mr. Clements of starting a business with legitimate means to earn extra income by employing aspects of illegal scheme in order to compete ...

MOHAN

6 years ago

.

What is the role of Registrar of Companies? just registration of companies only? CBI or any other central agency must probe the role of registrar of companies in various states in money chain/ MLM/ network marketing scams.

MOHAN

6 years ago

Why the RBI, ED, SEBI, IRDA waiting for formal complaints? they can can act without any formal complaints under Prize Chit and Money Circulation (Banning)
Scheme Act, 1978 against these MLM cheats.

REPLY

Vineeth A Kumar

In Reply to MOHAN 6 years ago

Authorities deliberately delaying a verdict in speakasia scam, which was sharply criticized by Judiciary, asking them are they not filing a single charge-sheet even after 2 years an more time, I don't know or am not interested to know where the case file is at present. Management is ready to payback everything, then what is the problem for court/RBI or I0...?

The management has not vanished overnight, its here and attending every single court proceeding...have the SFIO or EOW received serious money by all the other competitors to ensure indefinite delay...? IN A DIFFERENT DIPLOMATIC COURT ASKED THEM THE SAME THE SAME...

I suspect that under the instruction of political masters - elections is a costly matter. 2014 Country goes to Poll,,,who will fund these people...?

MLMs to face scrutiny by FIPB following action by Andhra Police

The FIPB, in its forthcoming meeting may discuss various alternatives, including whether action should be taken against MLM companies, as states such as Andhra Pradesh have found their business model prohibited under the PCMCS Act and have requested a review of approvals for these operators

 
Multi-level marketing (MLM) companies that follow the model of Amway, one of the largest direct selling companies in India, will come under Foreign Investment Promotion Board (FIPB) scrutiny at its meeting in the third week of this month, says a Business Standard report.
 
According to newspaper, the issue has been referred to the FIPB after an inter-departmental meeting, which involved representatives from the Department of Financial Services (which administers the  Prize Chits and Money Circulation Schemes (Banning) Act or PCMCS Act, 1978) and the Department of Economic Affairs (DEA), responding to requests from the Andhra Pradesh government, decided that as there were many companies engaged in similar activities as Amway it was imperative that clear provisions be incorporated in the foreign direct investment (FDI) policy at the earliest, the reports said.
 
The report quotes a spokesperson for Amway India as saying that the company has filed a special leave petition (SLP) before the Supreme Court following a decision of the high court, which observed that the company’s business model may come within the mischief of money circulation scheme under the PCMCS Act.
 
However, a former superintendent of police, Economic Offenses Wing, Andhra Pradesh, who was involved in the investigation of Amway, said this (the comment of the spokesperson) is nothing  but a propaganda used by the company to continue its MLM operations. “Section 3 of the PCMCS Act prohibits any entity from promoting, conducting any prize chit or money circulation scheme, enrolling any member of any such chit or scheme, or participating in it otherwise, or from receiving or remitting any money in pursuance of such chit or scheme. This is the provision we used to ban Japan Life, Amway and GoldQuest,” said the officer, who is now DIG at Hyderabad.
 
At present, the FIPB is not approving any new proposals for FDI in MLMs or network marketing companies. The Board, in its next meeting is also expected to discuss whether action in one state (Andhra Pradesh) should merit such companies to lose their FDI approval across the country, says the Business Standard report.
 
EAS Sarma, former secretary to the Government of India (GoI), has written to Arvind Mayaram, secretary for economic affairs, warning, “I apprehend that the FIPB route will be sought to be misused to obtain cover for these MLM companies which are nothing but a way to swindle the public to raise illegal funds to enrich unethical and anti-social persons.”
 
“Many of these (MLM) companies are not even registered under the Companies Act. Even those registered evade regulation. Those booked regroup under different names and continue to cheat the people. All these companies and those that promote them should be dealt with an iron hand and be prosecuted effectively,” he said. 
 
This follows several letters by him to the prime minister, ministry of corporate affairs, ministry of finance, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and others, on the subject. All of this has been backed by a solid body of investigation and research by Hyderabad-based Deputy Inspector General (DIG) of Police, VC Sajjanar. But he is fighting the battle alone.
 
Interestingly, the PCMCS Act, 1978, was promulgated only after large-scale loot by these dubious companies and a report by the James Raj Committee (1974) called for a total ban on such schemes arguing that they were prejudicial to public interest. It is clear the Act has failed in the 35 years thereafter, barring sporadic action by exceptional police officers like Mr Sajjanar.
 
In India, AP was the first State to enact a law to ban money circulation schemes in 1965. Both the Supreme Court and several high courts have passed landmark judgements against the operation of these schemes as they violate the law of the land and are detrimental to the interests of the public. There are ongoing cases against SpeakAsia and Amway, to cite two examples.
 
“While there are existing laws such as the PCMCS Act and others under which the concerned agencies could prosecute the culprits, there is no effective mechanism in place today to ensure a coordinated approach to identify the fraudulent operators in advance and book them well before they destroy the livelihoods of thousands of households and launder the ill-gotten funds to unknown destinations,” says Mr Sarma.
 
He said, there are infirmities in the existing laws to tackle the problem of these schemes effectively. For example, the penalty for offences committed under PCMCS Act does not exceed a few years of imprisonment and a few thousands of crore of rupees of fine, whereas the schemes act as a “slow poison” in the society; the culprits would have violated several economic laws and have links to anti-national groups and swindled thousands of crore of public money, the former secretary explained. 
 
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