Hyderabad (Telangana) [India], March 23 (ANI): The Hyderabad City Police on Monday arrested 32 persons, including 11 women, in connection with a large-scale fraud case linked to a self-styled franchisee of the Hong Kong-based QI Group operating in India under the brand name QNET, according to a press release issued by Commissioner of Police V C Sajjanar.
Police said the case pertains to alleged large-scale cheating to the tune of thousands of crores across the country and promotion of an illegal money circulation scheme through multi-level marketing (MLM) activities.
The operation was carried out by the Special Investigation Team (SIT) of the Central Crime Station (CCS), Detective Department (DD), Hyderabad, which conducted simultaneous inter-state raids across Telangana, Andhra Pradesh and Bengaluru, Karnataka, on March 23, 2026. The action was taken in connection with four cases registered against Vihaan Direct Selling Pvt. Ltd. at CCS, DD, Hyderabad, according to an official press release.
According to police, Vihaan Direct Selling Pvt. Ltd., formerly known as Gold Quest and Quest Net, targeted software employees, businessmen, housewives and unemployed youth under the pretext of part-time employment opportunities and e-commerce investment schemes promising high returns.
The accused allegedly invited potential victims to hotels in the Hi-tech City area of Hyderabad, where they explained investment plans without disclosing the name of the company, the MLM structure or the binary enrolment method. Victims were allegedly promised returns of ₹3 to ₹4 crore within two years against investments ranging from ₹5 lakh to ₹10 lakh. Initially, they do not reveal the name of Q-net Company, Multi-Level Marketing nor binary method, the release stated.
Police stated that in several instances, victims later received products at their residences, which were misrepresented as gifts from the company, while their investment amounts were allegedly diverted towards the purchase of MLM products without their consent or knowledge.
The group allegedly promoted various schemes, including Ponzi schemes, binary enrolment schemes, product-based plans and vacation packages, as part of illegal business tactics.
According to the press release, "this group of People showcase sale of products in the front end and in the back end promotes illegal money circulation scheme by promising huge commissions and income on the enrollment of new members in their binary model enrollment scheme. Further, a new member is entitled to join a new member unless he is enrolled in the scheme."
The release explained that under the binary model, the scheme of the Qnet is a binary scheme, which means one person has to join two persons, and each of these persons has to join two persons each, like 1+2+4+8 and so on endlessly. The person who enrolled is called a upliner, and the person who was enrolled under him is called a downliner. They refer to each member as an Independent Representative (IR).
Hyderabad Police said such enrolment schemes offering commissions for recruiting new members attract provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, under which such activities are prohibited.
The press release also cited the Supreme Court judgment in Kuriachan Chacko & Ors vs State Of Kerala on July 10, 2008, which held that such schemes are a "mathematical impossibility" and said The promoters of the scheme very well knew that it is certain that the scheme was impracticable and unworkable, making tall promises which the makers of the promises knew fully well that it could not work successfully. It could work for some time in that 'Paul can be robbed to pay Peter' but ultimately, when there is a large mass of Peters, they will be left in the lurch without any remedy as they would by then have been deceived and deprived of their money.
Police said most of the accused persons arrested in the case are IT employees, including some former IT professionals, and were involved in promotion, recruitment and training activities related to the fraudulent MLM network.
So far, 11 victims have been examined in connection with the four cases registered, with reported financial losses amounting to approximately ₹75 lakh. Police said more victims are yet to be examined.
Efforts are ongoing to trace and arrest other absconding accused persons involved in the fraud network, the release added.
The investigation is being carried out by Assistant Commissioner of Police V Narsimha Reddy, ACP Y Harish Kumar and their teams under the supervision of Deputy Commissioner of Police (Detective Department) S Chaitanya Kumar, DCP (Administration) Venkata Lakshmi and DCP (Cyber Crimes) Aravind, under the overall supervision of Joint Commissioner of Police (SB) S M Vijay Kumar and Additional Commissioner of Police (Crimes) M Srinivas.
Hyderabad Police have cautioned the general public against enrolling in or encouraging such illegal multi-level marketing schemes in any form, stating that not only enrolment of new members but also joining and earning from such schemes are banned under U/s.3 of the Act and made punishable U/s.4 of the The prize Chits and Money Circulation Schemes Banning Act, 1978.

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This report was published from a syndicated wire feed. Apart from the headline, the EdexLive Desk has not edited the copy.