32 arrested in Telangana, Andhra Pradesh, Karnataka in QNet-linked fraud
Hyderabad Police, in a multi-state operation, busted a multi-crore cheating network linked to Vihaan Direct Selling Pvt Ltd and QNet. Thirty-two suspects, including IT professionals, were arrested; victims reportedly invested Rs 5-10 lakh, with losses potentially running into thousands of crores.
Hyderabad: In a major interstate operation, the Hyderabad Police have busted an alleged multi-crore cheating network linked to a controversial multi-level marketing (MLM) scheme operated under the name of Vihaan Direct Selling Pvt Ltd, associated with the QI Group’s QNet brand.
The Special Investigation Team (SIT) of the Central Crime Station (CCS), Detective Department, carried out coordinated raids with 30 special teams across Telangana, Andhra Pradesh and Karnataka, leading to the arrest of 32 individuals, including 11 women.
According to the police, the suspects are believed to have played key roles in recruiting, training, and expanding the network. Notably, several of those arrested are current or former IT professionals.
Speaking at the press conference, City Police Commissioner VC Sajjanar on Monday said the company allegedly lured software employees, businesspersons, homemakers, and unemployed youth by promising lucrative part-time income opportunities and high returns through e-commerce-based investments.
“Victims were invited to meetings in upscale hotels in the IT corridor, where they were persuaded to invest amounts ranging from Rs 5 lakh to Rs 10 lakh with assurances of earning up to Rs 3 crore to Rs 4 crore within two years,” he said.
Investigations revealed that the company initially concealed its identity and the nature of its operations. In several instances, victims were misled into believing that products delivered to them were gifts, while in reality, their investment money was diverted toward purchasing these items under the MLM structure without their informed consent.
Officials said the scheme functioned on a binary model, where each participant was required to recruit two new members, creating an expanding chain. Earnings were tied primarily to enrolling new members rather than genuine product sales, a structure that officials say falls under illegal money circulation schemes banned by law.
So far, 11 victims have been examined across four registered cases, reporting combined losses of around Rs 75 lakh. Police suspect that many more victims are yet to come forward, and the total scale of the fraud could run into thousands of crores nationwide.
Efforts are on to trace and nab the absconding persons.
