8 leaders of Q NET arrested by EOW

Mumbai:Eight top executives of the MLM firm Qnet have been arrested by the Economic Offences Wing (EOW) of the Mumbai Crime Branch regarding a scam believed to be around Rs 425 crore.

Bangalore-based Qnet, which offers holiday packages and herbal products besides other products, invited investments promising big returns. The EOW suspects the firm used binary pyramid model for seeking investment, which is an illegal business model wherein the emphasis is on recruiting people and have them invest money, only to find the top management (people on top of the pyramid) siphoning of the funds.

The firm, which is headquartered in Hong Kong, has been booked for cheating, and EOW has also frozen bank accounts having deposits of more than Rs 100 crore. Those arrested on Friday have been identified as Namrata Pande (alleged to have illegally pocketed Rs 2.5 crore in commissions), Vivek Singh (Rs 1.8 crore), Sabina Mathews (Rs 1.2 crore), Rohit Chandra (Rs 1.2 crore), Vijay Mathews (Rs 74 lakh), Shashi Pande (Rs 70 lakh), Jaydev Parmar (Rs 70 lakh), and Manish Bharwali (Rs 42 lakh).

“We have arrested the Qnet leaders who we suspect had used the illegal binary pyramid scheme to bag investments,” Additional CP (EOW) Rajvardhan said.

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