Qnet's Tactics to Evade Security Agencies Exposed by Hyderabad Police: Report

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Hyderabad Police has revealed that Qnet, a Hong Kong-based multi-level marketing (MLM) company, has been creating various entities to avoid detection by security agencies. Speaking at a press conference in May this year, then Police Commissioner Anand disclosed the arrest of G Rajesh from Bengaluru, and K Manish and Syed Ajmal Mehdi Sajjad from Malakpet, for their involvement in MLM schemes, said reports.

According to a TOI report, Rajesh was apprehended for his association with V-Empire, a subsidiary of Qnet, operating out of Swapnalok Complex, where a tragic fire claimed the lives of six employees. Following the incident, the Central Crime Station (CCS) registered multiple FIRs against those managing V-Empire and other similar MLM operations. Qnet is also allegedly linked to Vihaan Direct Selling India Ltd. When security agencies began investigating Vihaan, they discovered it was an extension of Qnet.

"The arrested individuals collected money from unemployed youth and unsuspecting people by promising high returns. The main suspect, Rajesh, with the help of his accomplices, conducted motivational sessions and enticed victims with promises of earning between Rs 20,000 and Rs 60,000 per month after an investment ranging from ?50,000 to ?1.5 lakh," stated then Commissioner Anand.

The accused were found to be running a prohibited pyramid scheme disguised as a direct selling business. According to Telangana's 2017 direct selling guidelines, MLM and pyramid schemes are banned. "In the V-Empire case alone, we found that 150 victims had invested Rs 3 crore. Hyderabad CCS has frozen 35 bank accounts holding Rs 54 crore," Anand reported.

Officials noted that V-Empire was registered with the Registrar of Companies (ROC) in Bengaluru, and its key directors, Imtiyaz and Dileep, are currently at large. "The victims' money deposited in V-Empire was subsequently transferred to Vihaan's bank accounts," added Deputy Commissioner of Police (CCS) P Shabarish.

Senior police officers in Hyderabad have urged the public to report any MLM schemes they encounter. "Without information from victims or the public, it becomes challenging to act. We have increased awareness among our officers to proactively combat companies operating MLM models and deceiving people," Commissioner Anand emphasized.

Additionally, Maneesh and Ajmal were arrested for allegedly defrauding people through MLM operations by establishing E-store India (Axis E Corp Pvt Ltd and Ayurcare Health Products Pvt Ltd), though these companies were not connected to Qnet.