Qnet India – It is bizarre that after so many attempts made by the government and the authorities of various countries, companies succeed in fooling people under ponzi scheme. The strangest part is that the scam is discovered only after the Qnet succeeds in laundering million from the people across the world.
Recently, QNet is in news for accomplishing the same fraud and it is sad that people will once again forget about the pain and will indulge in something like this again in future. So, how these companies operate that it gets a chance to repeat the same scam over and over again?
These companies play with people weaknesses and make them their strength. QNet has the same fashion of fooling people.
The Bombay high court cleared the doubts that was prevailing among its many users who invested in this scheme thinking it to be an ecommerce business.
The company tried to camouflage people by acting as an ecommerce business. However, running a Ponzi Scheme.
Those who lost their money were still in the hope that they would get returns sooner or later. The charges against the company shattered all their beliefs.
It was necessary and till date there have been more than 40 arrests regarding the same. Bombay High Court rejected the anticipatory bail for 5 accused among the long list and clarified in its statement that the company was an operating a banned MLM structure.
People are coming forward to speak out and that is the reason authorities could catch so many scammers.
Justice Mridula Bhatkar said pointing the QNet Scam, “The motto of the company ‘sell more, earn more‘ appears very attractive and innocuous. However, this motto is fully camouflaged.
The company stands on a basic statement that people can be fooled. Thus, the true motto is ‘sell more earn more’ by fooling people. In fact, it is a chain where a person is fooled and then he is trained to fool others to earn money.
For that purpose, workshops are conducted where study and business material is provided with a jugglery of words, promises and dreams.
Thus, the deceit and fraud is camouflaged under the name of e-marketing and business.”
QNet sells many products including bio-discs, health products, energy, personal care, weight management, home care, luxury goods, fashion accessories, beauty products, holiday packages and many more.
It claims to be an ecommerce company but the despite the fact, a normal retailer can purchase products directly from their website only if he has the referral id.
This referral id should be from an independent QNet representative. This entirely contrast the whole scenario of ecommerce business.
Vijay Eswaran founded QNet in Hong Kong in 1998. He founded it along with QN Europe and other companies. Since then, it has popularized in many countries including India, Nepal, Indonesia etc.
The only way to purchase the product is through independent representatives who are given the profit share and are arranged in the binary fashion.
Gazing the situation and the damage that it has made, Bombay HC said, “It has very grave and serious impact on the economic status and mental health of the people on a large scale.
On considering parameters of section 438 of the Code of Criminal Procedure, I am not inclined to protect the accused. It won’t be out of place to mention that such circulation is required to be stopped.
It is necessary for the prosecution to take injunctive steps against this business activity, which is prima facie, illegal. Though by stopping this business, a large group of people may get financially affected, however, it will save larger groups of people from becoming prey of this activity.”
The application for bail filed by Srinivas Rao Vanka and Magaral Veervalli Balaji who are the directors of Vihaan Direct selling (India) Pvt Ltd, Malcolm Nozer Desai, 20% stakeholder in Vihaan and Michael Joseph Ferreira, 80% stakeholder in Vihaan and a former world champion of billiards and Suresh Thimiri who is the director of Transview Enterprises India Pvt Ltd was rejected by Bombay high court.
Vihaan is the top franchise for selling QNet and has fooled many people across the country. The Bombay high court took the decision keeping in mind the huge amount of Rs 425 crore QNet scam they are involved in.
The bench had its own stand. “The things are not as straight as they are perceived on the surface. Assuming that the scheme was launched with a noble object to give benefit to maximum people to make money quickly and easily by selling products of the company, however, after going through the material placed before me including the statements of the witnesses, I am of the view that in the midway, the intention of the applicants/ accused, who are the directors and shareholders of the company, became dubious.
They had knowledge that more members are suffering financial losses and they are not satisfied with the products.
The claim that the wellness products i.e., Biodisk and Chi Pendent are medicinal and spiritual products, are after all, a matter of faith. However, the applicants/ accused have launched these wellness products with ulterior motive and with correct judgment of vulnerability of the people.
The holiday packages, which were sold or offered, without any choice left to the buyers. The entire business was Internet based and, therefore, the persons who are responsible i.e., the top brass i.e., the applicants/ accused, were not approachable to the persons who were aggrieved.
The nature of the business was knitted in the interest of the Directors and shareholders in such a manner that the persons who are at the lower level of the pyramid cannot get any access to put up their grievances.
The manner in which the persons were contacted, incentives offered, the workshops were conducted, are best examples of inducement.”
There have been debate on changing the name of GoldQuest to QuestNet to QNet. This was done after GoldQuest and QuestNet was banned because of its suspicious operations. This has lightened up many memories and suffering that these companies caused in past.
GoldQuest and QuestNet’s offices were sealed in Chennai by the Ministry of Corporate Affairs. They created websites for travel and holiday packages and the operation was completely online. They did not pay their member even after the referrals were made. Because the transactions were online, no one was able to reach anyone in person and the address that was registered, was of a call centre. Hence, it was clear that entire structure was planned to cheat people.
There have been other arrests too.
Aditi Mitra is arrested as she is claimed to be actively engaged in the ponzi scheme run by QNet. The economic offenses wing made the arrest from the Chhatrapati Shivaji International Airport.
She was trying to escape to Dubai and was carrying 8 suitcases and 2 handbags. She refused to talk about the thing that were there in the suitcases. It has been discovered that there are multiple bank accounts on her name. One of them have 25 lakh INR. The authorities have frozen all her bank accounts.
Mitra used to brainwash people by telling fake stories and conducting seminars in various malls. She promised everyone she met that their investment would be doubled in the next three years. She made Majarekar, invest nearly Rs 12.5 lakh in the scheme.
People have made several complaints about the company. Gurupreet Singh Anand from Lokhandawala, Andheri who himself is a computer consultant filed an FIR against QNet stating that his wife was lures in investing Rs30,000 by someone who already was on IR at QNet.
All these charges are growing in number with time and people are coming forward to share their grievances. The charges are long and never ending and has posed serious financial and mental issues to the victims.
QNet should be banned for lifetime.