Daijiworld Media Network - Hyderabad
Hyderabad, Mar 23: In a major crackdown, the Hyderabad City Police arrested 32 individuals in connection with a large-scale multi-level marketing (MLM) fraud linked to Vihaan Direct Selling Pvt Ltd, operating under the brand of QNet.
Police Commissioner V. C. Sajjanar said the arrests were made through coordinated raids carried out by 30 special teams of the Central Crime Station across Telangana, Andhra Pradesh, and Karnataka, including operations in Bengaluru.
Among those arrested were 11 women, with the accused allegedly playing key roles in recruiting and training participants for the fraudulent scheme. Many of them were IT professionals or former IT employees.
According to investigators, the scam involved cheating victims of thousands of crores nationwide through illegal money circulation schemes. Vihaan Direct Selling Pvt Ltd, formerly known as Gold Quest and Quest Net, is linked to the Hong Kong-based QI Group.
Police said the network primarily targeted software professionals, businesspersons, homemakers, and unemployed youth, luring them with promises of high returns through e-commerce and part-time job opportunities. Victims were often invited to meetings in hotels around Hitech City, where investment plans were pitched without initially disclosing the company’s identity or the MLM structure.
Authorities revealed that recruits were promised returns of Rs 3–4 crore within two years for investments ranging from Rs 5 lac to Rs 10 lac. In many cases, victims unknowingly had their funds diverted toward purchasing overpriced products or packages under the scheme.
The operation also exposed the use of Ponzi and binary compensation models, along with product-based and vacation package schemes—methods deemed illegal by law enforcement.
So far, four cases have been registered, and 11 victims have been examined, reporting losses of around Rs 75 lac. Police believe many more victims are yet to come forward.
Officials said efforts are ongoing to track down absconding accused and dismantle the wider fraud network.