32 arrested in QNet-linked money circulation fraud by Hyderabad Police

Thirty-two persons were arrested for allegedly running an illegal money circulation and cheating racket linked to Vihaan Direct Selling Pvt. Ltd by the CCS sleuths of the Hyderabad City Police on Monday, March 23. Vihaan is a franchisee of QI Group operating under the brand name QNet, said the police.

The accused include 32-year-old Rohith Kumar, 31-year-old Sandeep Reddy, and several others, including 11 women, who were involved in promoting, recruiting and training members for the multi-level marketing scheme. Most of those arrested are software employees and former IT professionals.

Hyderabad City Police Commissioner V.C. Sajjanar said that the accused targeted software employees, unemployed youth, businessmen and homemakers by luring them with part-time employment opportunities and high returns through e-commerce and investment plans. “Victims were invited to hotels in Hitec City where they were persuaded to invest ₹5 lakh to ₹10 lakh with promises of earning up to ₹3 crore to ₹4 crore within two years,” said the officer.

He added that the company initially concealed its association with QNet and the nature of its multi-level marketing model. Victims were allegedly misled into purchasing products under the guise of receiving gifts, while their investment was diverted into the scheme without their knowledge.

Investigators from CCS said that the operation functioned through a binary enrolment model, where each member was required to recruit two others, creating an expanding chain. The system promised commissions based on new enrolments, which police said amounted to an illegal money circulation scheme banned under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

The Special Investigation Team of the CCS conducted simultaneous raids across Telangana, Andhra Pradesh and Karnataka, forming 30 teams for the inter-State operation. The arrests were made in connection with four cases registered at the CCS, Detective Department, Hyderabad.

“So far, 11 victims have been examined, reporting losses of around ₹75 lakh, while we suspect that many more victims are yet to come forward. Efforts are underway to apprehend absconding accused linked to the network,” added the Commissioner.

The case pertains to large-scale cheating allegedly running into thousands of crores across the country. Investigators said the accused operated under the guise of product sales and vacation packages while promoting the illegal scheme.

On March 17, the SIT had earlier questioned several suspects as part of the probe. The investigation is being carried out by teams of the CCS under senior officers of the Hyderabad City Police.

Police have cautioned the public against enrolling in such schemes, stating that participation, promotion or earning through such money circulation models is a punishable offence under the law.