MUMBAI: The city economic offences wing (EOW) said multi-level marketing firm QNet had collected over Rs 425 crore from its investors.The bank accounts of the firm, its independent representatives and associates have been frozen. There is reportedly a total of Rs 110 crore in these accounts.
An EOW source said the company continued its schemes in the name of Quest Net by floating a firm, Vanmala Hotel Travel and Tourism Services Pvt Ltd, even after cases were registered against it in Chennai, Andhra Pradesh, Maharashtra and Karnataka.
“In April 2012, QNet Ltd formed Trans View Enterprises and Vihaan Direct Selling Pvt Ltd and continued their schemes. Through its website, qnetindia.in, the firm gathered its employees who had worked for it a decade ago. From April last year to August this year, the firm collected over Rs 425 crore from 90,000 people,” said an officer. “We are speeding up the investigation and more arrests are likely soon,” said Rajvardhan Sinha, additional commissioner, EOW.
The company lured investors with various schemes with an investment between Rs 30,000 and Rs seven lakh. “The firm posed as a marketing firm which would sell bio-disc, watches, chiPendants, gold coins, herbal products, E-education packages, holiday packages etc. They even claimed that by using the bio disc one can cure cancer and brain related diseases,” said an officer.
“Some money has been transferred to Malayasia, Singapore and Hong Kong too. The exact figure is not known. We are probing the money trail.” So far nine persons, including two women, have been held for cheating, forgery and under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
“There are more than two dozen cheating FIRs filed against the company. In Mumbai, an Andheri resident Gurpreet Anand lodged an FIR and named Vijay Eswaran, director of Vihaan Direct Selling (India) Private Limited, as the main accused,” said an officer.