Why is media silent about the Qnet scam?

It's and absolute scam. It's a pyramid scheme, which is an unsustainable business model. Those fools who have already enrolled would act as if they are earning huge through this, just to entice and lure. Once in, you will figure out that you have been made a scape goat and will shamelessly lure people so as to recover the huge sum you paid. Besides losing money, you will eventually lose respect, self-esteem, confidence, become depressed and looked upon as a joker.

Here is the Facebook post I made after a few such encounters:

Scene 1:

While I m casually browsing through books at Landmark or Crossword or while waiting for the bus, some guy would smile at me and start a conversation. He would flatter me and finally with the statement, "let's keep in touch", would ask for my mobile no. I m flattered and would end up sharing my mobile no.

Scene 2:

A few days later, I would get a phone call from this guy whom I met at the bookstore or bus stop. Ha ha ha... All these jokers who called me would exchange pleasantries and then make the next statement "We are actually working on a wonderful business alongside a few people from IIT/IIM and are looking for likeminded people to expand. I think you have the potential and would be a great fit, besides you can make big bucks in a short while." When I ask, could you please explain in detail, the reply would be "It's difficult to explain it on phone. I ll arrange for a detailed session where you can get all your queries answered"

Scene 3:

By mistake I went one such session. The hall or the house where these sessions would be filled with people who had already fallen into the trap along with the newly found scapegoats they would have brought in. And those who had already fallen into the trap of MLM, though desperate inside to sign the next scapegoat would act as if they have made millions. Then, a guy would come on stage with an artificial enthusiasm and shoot out questions like, "What do u do on weekends? Do you think u can survive on your meagre salary? Why not explore options to earn part time, while you continue your regular job? I will show you the way to earn big bucks. You just need to spend half an hour daily or a few hours on the weekend" By falsely hyping all this, those desperate jokers would try to brainwash and make you the next scapegoat. If you don’t agree, 4-5 guys would join together, hype and put a mental pressure to sign up under them. - Do not budge under pressure.

Scene 4:

QNet: Mumbai police issue lookout notice against 10 including Michael Ferreira, Vijay Eswaran

Mumbai Police have issued lookout notice against 10 people including QNet founder Vijay Eswaran and former billiards champion Michael Ferreira in the Rs425 crore QNet scam case

The economic offences wing (EOW) of Mumbai police has issued lookout notices against 10 people including Michael Ferreira, former World Billiards Champion and Padma Bhushan awardee, after he failed to turn up for questioning in the QNet scam case. Other people against whom the lookout notice has been issued include QNet founder Vijay Eswaran, its vice president Dev Wadhwani and Sachin Gupta.
Vijay Eswaran with Michael Ferreira (circled) at one of the promotional events of QNet

According to sources, EOW has also issued notices against six other officials and leaders of QNet. However, their names were not revealed by the sources.

Ferreira was summoned by the EOW in connection with the Rs425-crore scam allegedly committed by multi-level marketing (MLM) operator QNet. The former world champion is founder of Faith, which was started as a distributor network under the QI brand.

Last month, while speaking with news channels, Ferreira, who has gone abroad some time back, had said he would appear before the investigators as soon as he returns to India. He even defended the controversial company.

The Padma Bhushan awardee had told the channels that "three to four days ago, the summons was received at my home (in Mumbai) in my absence. I am abroad now. The summons was handled by my lawyer and I understand he is co-operating fully."

Responding a query, he had said "of course, I shall make myself available (before the Economic Offences Wing of the Mumbai police). I have the highest regard and respect for the police. As soon as I am cleared to travel, I will appear before the EOW. I am undergoing a lot of stress at the moment."

However, former World Billiards Champion did not turn up before the EOW, which resulted in police issuing a look out notice against him.

Others against whom the EOW has issued lookout notices, include Dev Nanik Wadhwani. He is founder of team Infinity, the most aggressive team of QNet's independent representatives (IRs) at present in India. Sachin Gupta is one of the so-called 'top leaders' of QNet from Mumbai and according to sources may have fled to Dubai.

QNet operates in India through its official franchisee Vihaan Direct Selling Pvt Ltd, which carries the company's brand name in the country. Ferreira owns 80% stake in Vihaan Direct Selling with Malcolm N Desai holding the rest. Desai had already approached the Sessions Court in Mumbai for an anticipatory bail fearing that the EOW may arrest him soon.

According to Faith Egypt , Michael Ferreira is the founder of 'Team Faith' that is involved in hard selling QNet scheme. Talking about Ferreira, it says, "As an individual, in a very short space of time he (Ferreira) was in the list of the top 30 earners and under his astute stewardship he provided the platform, environment, guidance, training and inspiration to his flock, many of whom are earning incomes beyond their wildest dreams."

Showing a clear link between, Ferreira, QNet and its founder Vijay Eswaran (one of the accused in the cases against the MLM operator), the portal says, "The core leadership of Faith is today in a position to concentrate more sharply on those who still remain vulnerable to the “slings and arrows of outrageous fortune” so that each one of them develops into lead birds of their own teams, all fiercely loyal to Faith, its philosophy and its ideals and to the values espoused by its visionary and mentor Dato Vijay Eswaran."

Faith Egypt, also reveals names of other people, like Mark Ferreira, Malanie Sequeira, Lata Hegde and Manjunath Hegde, all of whom are associated with QNet. In August 2013, the EOW had arrested Bandra-based Manjunath Hedge for cheating in the QNet case. The EOW searched his house and seized computer hard disc and several incriminating documents, including some payment/ commission receipts.

As reported by Moneylife, QuestNet and GoldQuest, the MLM companies that had shut shop in 2009 following police action are back with a bigger bang. They now call themselves as QNet and are thriving in an environment where tens of thousands of Ponzis and MLM companies are able to lure people into believing that they have the formula to instant riches and a high growth career.

QNet: EOW arrests V-Elite leaders Sandeep Kalra and Hitesh Miglani

Kalra from Delhi and Miglani from Bangalore have had pocketed lakhs of rupees through the MLM scheme and organised several training camps to lure investors. Both were intercepted by immigration authorities as their names were on a look out circular issued by EOW

The Economic Offences Wing (EOW) of Mumbai Police arrested Sandeep Kalra and Hitesh Miglani, senior independent representative (IR or agents) of controversial multi-level marketing (MLM) company QNet. Both were picked up from Delhi International Airport. Meanwhile, the MLM and its leaders are also booked under the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 as well for selling plastic and glass products terming them miraculous objects for treating severe diseases like Cancer.

 

Kalra and Miglani were intercepted by immigration authorities at the Indira Gandhi International Airport at Delhi last night, say media reports. Both belong to the ‘Infiniti’ team at QNet and part of V-Elite leader’s team. 

 

The duo, who arrived from Dubai in separate flights, was stopped at the airport as Look Out Circulars (LOC) were issued against them by the EOW probing the case. 

 

The two suspects, who were suspected to have had pocketed lakhs of rupees through the scheme and organised several training camps to lure investors, have been subsequently brought to the metropolis and placed under arrest this evening, police said.

 

The LOCs have been issued against those whose statements have been necessitated in the probe but did not appear before the investigators despite summons.

 

Kalra hails from Delhi while Miglani is from Bangalore, police said adding that this is the first arrest of those against whom LOCs had been issued.

 

The EOW had earlier arrested 15 persons for allegedly duping investors by selling QNet products, including magnetic disks, herbal products and holiday schemes, through allegedly fraudulent means.

 

The EOW has invoked the stringent Maharashtra Protection of Interest of Depositors (MPID) against the company which has denied any wrongdoing on its part.

 

QNet has also been accused of using the banned binary pyramid business model. An FIR in the case was registered in August in 2013. The accused had been charged with cheating and forgery under relevant sections of the Prize, Chits and Money Circulation Schemes (Banning) Act, 1978.

 

EOW booked 19 accused including Michael Ferreira, the former world champion of billiards and five companies related with QNet, under the MPID Act. This means all the cases against QNet, Vihaan and all those involved in the MLM scam would be heard before the special MPID Court. Until now, the accused were being investigated for cheating and forgery under the Prize, Chits and Money Circulation Schemes (Banning) Act 1978, and for money laundering by the Enforcement Directorate (ED).

 

Gurupreet Singh Anand, a computer consultant from Lokhandawala, Andheri in his first information report (FIR) stated that his wife was duped for Rs30,000 by some people who had introduced themselves as the independent representatives (IRs) of QNet. Anand told the police, “They (IRs) had said that one of the bio-products my wife bought could be used to treat my 12-year-old son's brain-related diseases.”