MLM / Chain Money
QNet: Delhi HC says no to quash FIR against Michael Ferreira and others
While dismissing a petition to quash first information report (FIR), the Delhi High Court has categorically stated that Michael Ferreira and Malcolm Desai, the two main stakeholders of Vihaan Direct Selling (India) Pvt Ltd are the primary beneficiaries of QNet, the multi-crore scam. Srinivas Rao Vanka and Magaral Veervalli Balaji, both directors of Vihaan at the relevant time, at the pinnacle of the company, were maintaining positions due to which they were in charge of and responsible for the functioning of the Company, the Court said. 
 
"Their role and involvement in the alleged offence has to be ascertained. The investigation is still ongoing, and it cannot be said at this stage that nothing has been, or can be unearthed against the petitioners. In my view, quashing the subject FIR at this nascent stage would thwart the unravelling a huge multi victim scam which has affected hundreds of innocent investors and robbed them of their hard earned savings. It would also send a very wrong signal – not only to the petitioners, but to the society at large," Justice Vipin Sanghi said in an order issued last month.
 
The HC said, "The case involves a multi-victim scam. It appears that cognizable offence of cheating is made out by the complainants and victims against the accused Company and its independent representatives (IRs). The modus operandi of the accused – as explained; the purchase confirmation receipts brought on record; the earlier proceedings instituted against the earlier Avatar of the accused Company promoted by the same beneficiaries and promoters prima facie indicate that offences of cheating, dishonest inducement and criminal breach of entrusted property have been made out."
 
The Delhi HC Bench, using fact brought on record by counsel from both the sides, revealed how Vihaan, QNet, GoldQuest and QuestNet are all interlinked. The Court stated, "... it is not disputed that the accused company comes from the same stable as QNet Ltd. In fact, a perusal of the QNET Policies and Procedure which have been produced on record by the petitioners (Ferreira, Desai and other two) states that 'the Company (Vihaan Direct Selling (India) Pvt Ltd) is a franchisee of QNet Ltd (Hong Kong) for the distribution of QNET products within the territory of India'. Further, the status reports reveal that Vihaan and QNET are associated with companies called QuestNet Enterprises and GoldQuest International. These companies have further been stated to have a common business module like that of the accused Company (Vihaan)."
 
"The petitioners herein, admittedly, have been the IRs in QuestNet and are now involved in the accused Company as either promoters/ shareholders or directors of the accused Company. They have been involved in floating the said multi-level marketing (MLM) scheme. These facts indicate the probability of the petitioners having knowledge of the alleged fraudulent transactions being undertaken through the IRs of the accused Company and of being direct or indirect beneficiaries of the same," it added.
 
According to the HC, the IRs are enrolled and then tutored or trained into trapping others into the money circulation scheme. It said, "The IRs have no option, but to – unwittingly, fall in line and carry out the fraudulent scheme of the company. It also prima facie appears that the scheme floated and operated by the accused is only a money circulation scheme and not a MLM scheme, since no actual products or services appear to have been sold or delivered to the customers. This is evident from the modus operandi adopted by the accused in providing incorrect or fictitious addresses and phone numbers. Pertinently, the accused have not even claimed that goods or services have been delivered at such fictitious addresses."
 
"The petitioners were IRs of the company QuestNet Enterprises, which was also prosecuted and has currently terminated its operations. The same petitioners have founded Vihaan Direct Selling (India) Pvt Ltd which is accused of cheating and dishonestly inducing victims to invest monies in a fraudulent business by camouflaging it as an e-commerce business. Such facts further strengthen the possibility that the petitioners having a nexus with such fraudulent transactions," the HC said.
 
The FIR was registered by one Anuj Jain and 15 others from New Delhi against Vihaan, Himanshu Aggarwal, Anita Jaggi and Kanika. Jain in his FIR stated that his friend Himanshu and two others met him on 29 November 2015 and asked him to invest Rs6.5 lakh in a business opportunity. When Jain told them that he could not arrange this amount, they told him he can join with whatever amount he could manage. Jain then handed over a cheque of Rs4.5 lakh on 4 December 2015 and another cheque of Rs2 lakh in the name of one of the accused on 8 December 2015.
 
After realising that he was lured into a network marketing business, Jain sought refund of his investment. However he was told that he could only get it back by earning commission, which is given if new members are brought in. Jain also claimed that a new email id was registered by the accused persons on their portal through which the products were purchased by using his money in the name of one Anita Jaggi at her address. 
 
Adv Richa Kapoor, Additional Standing Counsel (ASC) for the State, citing two status reports, submitted that Jain and other 15 lost monies between Rs1.5 lakh to Rs10 lakh each. During the investigation more victims came forward taking the number of complaints to over 65. 
 
Explaining the modus operandi, Adv Kapoor told the Court that Jain was given a portfolio number, a login ID and password. "...the investigation shows that the email ID '[email protected]' was created by the IRs without Jain's consent, and this email address was used for the purchases made by the IRs in his name. The email was later changed and was used in the portal so that he could not get any information regarding any purchases being made by the IRs, and further disabling him to apply for a refund."
 
The status reports revealed that the in some of the purchase confirmation receipts, the
shipping address of Jain was displayed as 'K-47 Jangpura Ext Delhi 110014 British Virgin Is.', for the purchase of some products, while some products are shown to be shipped at an address in Dubai showing his contact number as '971555532884' and address as 'c/o Srinivasan Raghavan Flat No.204 building no.R-444 near 7 days Super Market Karama Dubai, UAE'. A perusal of these receipts show that orders have been placed using the email ID '[email protected]' which, as aforementioned, was not created by Jain. Further, two watches, one vacation package and two Cristal pendants have been shown as purchased by Jain, which was without his instructions. He, along with other complainants and victims have never received or been given anything as specified in the purchase orders so far, the report says.
 
Adv Kapoor submitted before the Court that Vihaan and QNET are acting in connivance with each other to cheat and defraud the public at large. She said the domain names 'www.qnetindia.in' and 'www.qnetindia.net', which were registered through the domain name providing company 'Net4India' in the name of Vihaan, and not QNET. 
 
On investigation, Net4india provided the address details of the company which applied for the said domain names as:- “ QNETINDIA, Srinivas Venka, Unit No.S02, 22nd floor WTC Bengaluru Brigade Gateway Campus, 26/1 Dr Rajkumar road, Malleshavaram West Bengaluru, Karnataka, Ph-9901530200, e-mail id: [email protected]and [email protected]Ms Kapoor submitted that Srinivas Rao Venka is one of the accused in this case. She further submitted that Vihaan had applied for renewal of the aforesaid domain names.
 
"...investigation of the bank account details of Vihaan shows that it was opened very recently on 18 December 2015 and within a span of six months, about Rs56 crore was found to be
deposited in this account and there are several other bank accounts of Vihaan," Ms Kapoor submitted. 
 
She stated that Vihaan has been incorporated by its promoters and shareholders, since the fraud and cheating committed by their companies had been unearthed, and they could not carry out their fraudulent activities in the name of the erstwhile company. 
 
In his contention, Senior Adv Sudhir Nandrajog, Counsel for Desai and others stated that the status reports relied upon by the State contain no material evidence to establish the alleged direct inducement made by the petitioners to the victims. He submits that entrustment is a mandatory requirement before an offence of cheating can be established. He reiterates that the petitioners are not direct beneficiaries of the said schemes. He submits that the petitioners were IRs of Questnet, which has now closed its operations, and not Vihaan. He admitted that the petitioners were promoters of Vihaan - holding a 100% stake in the company, but submitted that the people involved in the execution of the MLM scheme were the IRs and not the promoters. "The promoters were not responsible for the working out of the scheme. Thus, the mismanagement of the said scheme has been done at the behest of the IRs, and the petitioners cannot be held liable for the same," he added.
 
While dismissing the petition, Justice Sanghi said, "Having heard the learned senior counsel for the Petitioners as well as the learned ASC and perused the FIR and the status reports on record, I am not inclined to quash the FIR in question and the criminal proceedings arising therefrom at this stage, in light of the facts of the present case and the materials unearthed so far during the investigation conducted till now."

User

COMMENTS

gurupreet

4 months ago

💥📣 HYDERABAD QNETSCAM victims meeting update 📣💥
Dont REGRET later if you miss this meeting, for which we are taking special efforts.

Please gather tomorrow sharp 11AM at Sudarshan 35MM, RTC Cross Road, CHIKKADPALLI, HYDERABAD..
For answers to your questions

Ever since you lost your hard earned money in QNET SCAM, you all have multiple questions and facing multiple issues like:

1. Where and whom to approach for recovering your hard earned money?

2. How to help fight and stop this QNET SCAM?

3. How to teach your CHEATER UPLINES a lesson?

4. Issues regarding the “so called” “REFUND POLICY”.

5. Are you eligible for “Compensations”?

6. Issues regarding action by police authorities.

7. What is the status of the court cases etc

These are an example of just a few issues and concerns you are facing, but there is GOOD NEWS for you all. We have been working overtime to try and bring an end to these woes and issues faced by Victims of Financial Frauds like this QNETSCAM.

So guys and girls coming Sunday i.e 23rd of July 2017 is the BIG DAY finally , Please do join us at 11AM at the above mentioned address and the location is also attached here with.

Please do come and also inform other victims of the QNETSCAM in Hyderabad, Telangana and Andra Pradesh.

For details WhatsApp me on 7498063701 or call on +918978700018 and speak to Mr. Raghav.

Please pass this important message on all WhatsApp groups, Facebook and Twitter etc so all victims of QNETSCAM in Hyderabad and around can attend.

Those who are attending please confirm in advance as we have limited capacity only🙏

Jai Hind

gurupreet

5 months ago

#QNETSCAM & SUPREME COURT MATTER UPDATE - Please read till the end.

Dear Members,

Jai Hind to all. As you are aware I have had fought the QNET SCAM since last 4 years and devoted all these years full time towards taking effort to expose the QNET SCAM because of which millions of innocent people in India are loosing thier hard earned money and due to my efforts the #QNETSCAM had almost come to a stand still.

This fight has had taken a HUGE effort and affected my personal and professional life beyond what can be explained here, though all cases in which I appeared had verdicts coming in favor of the victims of #QNETSCAM

In Bombay High Court and the Supreme Court I have faced the best and most expensive lawyers in India like Mahesh Jhetmalani , Kapil Sibbal, Salman Kurshid , Dushant Dave etc but they could not protect the accused involved in the #QNETSCAM till recently when...

These accused cheated and played FRAUD upon the Supreme Court and obtained an stay order on all proceedings against QNET all over India. It is very very Important for all of us to come together and unite so that this fraud can be exposed and correct facts are brought before the Supreme Court.

To carry forward this fight further I need to move to Delhi and need support from you all without which this fight will come to an end. I request Donations from you all for fighting this #QNETSCAM which is destroying lifes, families and careers and thousands of crores are being laundered out of our country India.

I request donations and the same can be send thru Bank transfer or deposits in my bank account number as below:

Account number: 32280724593

BANK:
state bank of India, Lokhandwala branch


IFSC: SBIN0013204


Name as in bank records: Gurupreet Singh Anand

You can also donate via Paytm on 7498063701. Any donations big or small are welcome.

Other help in form of a place to stay in Delhi and if anyone has an extra activa or similar gear less two wheeler which I can use is also welcome. If you think you can help in any other ways please whatsapp me on 7498063701

Regards

Gurupreet Anand



Please pass this message to all groups, Facebook, Twitter, activists, members and victims of QNETSCAM, please join the fight in exposing the biggest ponzi scheme in India and stop the money being laundered out of our country



Vande Matram

jitu moni

8 months ago

http://www.mid-day.com/articles/qnet-case-scam-mumbai-news-mumbai-airport-arrest-eow-aditi-mitra/18084164
The Economic Offences Wing (EOW) of the city police arrested a woman in her early 30s on Thursday for her active involvement in the multi-crore QNet scam. The total number of arrested accused has now reached 47, which includes Billiards champion and Padma Bhushan recipient Michael Ferreira.
In the Rs 1,000-crore scam of Hong Kong-based company QNet, nearly 5 lakh investors across the country were duped. QNet has been accused of using the banned binary pyramid business model for its multi-level marketing schemes to lure investors.

QNet posed as a marketing firm selling bio-discs, watches, herbal products, holiday packages, etc. It also claimed that by using the bio-disc, one could cure cancer and brain diseases, the police said.
Too much baggage
Accused Aditi Mitra was intercepted at the Chhatrapati Shivaji International Airport, and subsequently, arrested based on the lookout circular that had been issued against her.

Assistant commissioner of police Arun Jadhav confirmed her arrest said she was sent to police custody till March 23.
Mitra was allegedly trying to flee to Dubai for good. She was carrying eight big bags and two handbags. Of the eight, two contained her belongings; she refused to say what was in the other six, sources said.

Mitra, an independent representative associated with QNet, had been getting hefty commissions in return. She has multiple bank accounts, with one alone having Rs 25 lakh, as EOW officials found, adding that all her bank accounts have been frozen.

Active player
Investigators found that on the instructions of the other accused, Mitra was actively involved in the scam. She had brainwashed victims in order to induce them to invest in the scheme,” said special public prosecutor Pradip Gharat.

A victim, Sewri resident Arpita Majarekar, said, “She would conduct welcome sessions in malls and trap people with her sweet talk.

She had promised me and many others that if we invested in the scheme, we would get double the amount in three years.” Majarekar, who works in a private firm in Andheri, had invested nearly Rs 12.5 lakh in the scheme through Mitra.

She has been booked under relevant sections of the Maharashtra Protection of Interest of Depositors in Financial Establishments Act, Prize, Chits and Money Circulation Schemes (Banning) Act, and the Indian Penal Code.

atul gupta

9 months ago


Be ready to fight against QNET/VIHAAN and all your uplines including friend.
Find QNET REFUND PROCESS and COMPLAINT AGAINST QNET procedure as below.
1st Option
If your purchase on product receipts is in INR rupees then with in 30 days of purchase or if your purchase is in USD dollar then with in 7 days you can send email to Qnet customer support for refund otherwise Qnet will deny you refund. Then go to 2nd option which all need to go for even after you get refund to get QNET banned from India and to save our brothers & sisters.
1. Get your IR ID and products receipts first. Both will come to your mail box once your upline register your email id on portal. If email id is given wrong by your friend/upline then first send email to Qnet customer support with copy of Pan Card and ask them to update your email id first. Qnet will confirm you updation of your email id. Then call Qnet support and ask your product purchase details.
2. Send a cancellation mail for both products and IR ID to the support team of QNET with a subject line as "REFUND IN****" provinding all details of transactions and product details.Usually IR number will be like IN4444 and all. Attach scanned PAN CARD and product receipts in the mail to them.
jasvinder.kaur@qnetindia.in
rekha.s@qnetindia.in
jyoti.s@qnetindia.in
Veronika.c@qnetindia.in
support.centre@qnetindia.in
global.support@qnet.net
Eva.sin@qnet.net
3.Once this mail is sent, the support team will create a CRF number and send to Hong Kong team for approvals for the refund request. It will take 20-30 working days for the refund to be processed by Qnet.
4.Meanwhile, mail them or call them on every alternative days for an update. QNET Numbers are :
9900060061,62,64,68-Veronika
9900060605,9148149320Jasvinder
5.Once Refund request is completed ,they ask for the mode of payment. Better go for Money transfer to your account, then you have to send a scanned copy of your cancelled account cheque leaf or bank statement.
6.After 20 working days, you will get your money refunded of the product to your bank account.
7.Rest of money left , you collect from your upline by filing complaint in local police station.

2nd Option
pls all go for 2nd option even if you get money refunded as per option 1 by QNET to ban QNET and save indians.
File written complaint/FIR against your friend and all uplines at local police station and write in complaint that QNET is running money circulation scheme which is banned in india as per prize ,chit and money circulation scheme ,1978. Your uplines will be called by police and they will return you money through QNET or themselves as you can not get refund from Qnet after 30 days are over if products purchased through indian portal and after 7 days if purchased through world portal. Warn your uplines that you are going to file complaint/FIR against them. Besides above process kindly by post or by hand send your complaint to THE DCP, ECONOMIC OFFENSES WING, MANDIR MARG, DELHI also to ban QNET by using format of complaint given below.
https://drive.google.com/file/d/0ByQ-yz2wwceEX3BEV3kxZlNkbDg/view?usp=drivesdk
In your complaint attach uplines photos, mobile numbers, your bank account statement if you transferred money from your account to upline account or cash/DD deposit receipt, pan card, address proof, purchase receipts. Mention in your complaint that meeting took place nearby your home or office otherwise local police will ask you to lodge complaint at police station where actual meeting took place. File complaint at your nearby police station and EOW DELHI both to fight against QNET. Do not sign any affidavit asked by your uplines to give back your money. Follow option 1 or 2 as applicable in your case.

Suresh Sahu

9 months ago

Qnet Guys,enough of this qnet shit. Not a single court is supportingy You. You are to doom soon. Wake up and smell the coffee. The pyramid model itself is unsustainable. Its a open challenge to qnet guys, if you have balls - prove us that a pyramid model is sustainable.

ankit

9 months ago

Looks like all the QNet zombies are here to troll :-) Poor guys lost all their wealth

REPLY

Suresh Sahu

In Reply to ankit 9 months ago

No bro, not as of now- It vl take some more time:)

ankit

9 months ago

Looks like all the QNet zombies are here to troll :-) Poor guys lost all their wealth

Rajveer

9 months ago

Moneylife, you are the real morons i think, This is a legitimate business and this is an amazing company. If i start writing blogs about your actual scams trust me you will scratch your head.

REPLY

Suresh Sahu

In Reply to Rajveer 9 months ago

Rajveer, actions are more stronger than pledges. If moneylife has done any wrong, write blogs, no one is stopping you. Dont make emptybox statements.
Coming to qnet, You guys are big bunch of dacoits. At any time in your system, 85% will never have money. Take a sample of 100 IRs and do the math yourself. You vl get the answer. And this 85% remains the same if the IR list is either 1000 or 1 billion!! Then how do you think is this sustainbale? If you make a clain that buyers vl have product with them, then i would question you what if you are given a vacation package and two watches which perhaps you were never inclined to buy?? You need to admit the fact that you always had lured people. NO?

Roy Aranha

9 months ago

speedy justice to the affected investors and recover the monies , pay all those who Lost because such cASES DIE A NATURAL DEATH AS THE EXPERIENCE HAS BEEN

Karthik Krthk

9 months ago

This is one from the worst news analytics of moneylife...

REPLY

Suresh Sahu

In Reply to Karthik Krthk 9 months ago

Dont you ever think for a moment- if the modus operandi you guys do is unethical.?You guys even wont tell that you are from qnet..How many times you would have spoken regarding your products to the new guys?Have you ever wondered why your business is banned in many of the countries.? Have you ever felt cheated from your dearest friend? Leave all that..Just answer me this..Will you go to jail along with your michael ferrera if he is convicted?

Deposits raised by unregulated entities are on the radar of Finance Ministry
India is a country where business is largely carried on in the form of proprietary concerns and partnership firms, and not in the form of companies and Limited Liability Partnerships (LLP). The way of doing business is quite informal, including modes of raising funds for business.
 
While a few companies (Saradha, Sahara, Sumangal, and Sanchayita) were responsible for the scams in the past, all those doing business will have to bear the brunt of their acts. When the deposit rules under the Companies Act, 2013 became stricter, it was obvious for people to think of LLPs. Most people would prefer not to do business in a highly regulated environment, especially when the business model itself is fairly simple. Fund requirement is a perennial issue and, depending on the size of business and capacity of the businessman, the source varies. So, one may not necessarily go to a bank or a non-banking finance corporation (NBFC) or one’s relatives to raise funds for a business, and instead may go to  ‘Khanna uncle’ or ‘Balbirbhai’. However, the enforcement of Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests Act, 2016 (the Bill 2016) will curb this practice. Looking at the penal provisions, businessmen would prefer to suffer losses rather than to go to jail.
 
Section 45S of the Reserve Bank of India (RBI) Act also prohibits acceptance of deposits by unincorporated bodies. The intent of this bill is also to spread the net on all deposit-takers who accept or solicit deposits to defraud investors, and not to meet the fund requirement in the ordinary course of business. However, the exclusion carved out does not adequately consider options like borrowings from ‘Khanna uncle’, unless they are obtained as advance for supplying goods, or rendering service, or received as credit. Similarly, raising money through issue of bonds, debentures by LLP or trust has not been included, unless these entities are Alternative Investment Funds (AIF) or mutual funds.
 
In September 2015, SEBI in an informal guidance given to Vijay Suraksha Realty LLP, conveyed that while the definition of ‘debt securities’ under SEBI (ILDS) Regulations 2008 covers securities issued by a LLP (a body corporate), the definition of ‘issuer’ talks specifically about company, public sector undertaking or statutory corporation. Further, the option for LLPs to raise funds from other sources, not partners or relatives of partners, gets prohibited under this Bill.  
 
Every Ponzi scheme is followed by a new law and such reactive law-making adds to the woes of genuine entrepreneurs. The penal provisions under such law are equally scary. ‘Scheme’ means to make plans, especially in a devious way or with intent to do something illegal or wrong. The intention is to prohibit such persons from defrauding investors. However, funds raised from third person for genuine business purpose cannot be regarded as a scheme for raising deposits in a country where a large part of business is run in an unorganised manner.
 
So each time an unincorporated body or LLP requires funds, it will have to look at the Central Government and plead ‘Prabhu path pradarshitkariye’ to wait for the Central Government to notify deposit schemes that shall not be treated as Unregulated Deposit Schemes for the purposes of this Act. Instead of specifying what schemes can be excluded, a litmus test must be provided such that meeting of any of those conditions would regard the loan as unregulated deposit. 
 
Considering the above mentioned points and keeping in view the small businesses, this Bill may be made lenient for particular cases. Protection should be given to those who intend to be protected, therefore, the known investors (other than relatives) should also be able to lend to such businesses.
 
(CS Vinita Nair-Dedhia is partner at Vinod Kothari & Co)

User

ED officer alleges 'larger conspiracy' to eject him from Rose Valley probe
ED officer Manoj Kumar, who is facing allegations of closeness to the wife of scam-accused Rose Valley Chit Fund owner Gautam Kundu, Tuesday termed the accusations as part of a "larger conspiracy" to remove him from the investigation into the scam even as police said he could be summoned for questioning.
 
"This is a larger conspiracy to eject me out of the case. I don't want to comment... political victim or a victim of cross fire by the Kolkata police for the reason best known to them," the Enforcement Directorate officer said on Tuesday.
 
Some television channels have been beaming footage since Monday night purportedly showing Kumar and the woman together at the Kolkata airport and at a hotel said to be in New Delhi. Some channels have claimed that the videos were released by the police, but the latter did not confirm it when IANS posed the question.
 
IANS has not verified the footage.
 
"Yes, they may be summoned, not sure, but if the investigation needs they may be summoned," said a senior officer of Kolkata police.
 
Referring to the footage, Kumar, the investigating officer in the chit fund scam, said he went to Delhi for official work related to the investigation.
 
"I went there on my own to file the complaint of attachment. She came for her own work," he told media persons.
 
Terming the woman as a "great help in the investigation", the officer said he was able to trace the huge property of Rose Valley with her help.
 
"She has been a great help in the investigation and with her help I was able to attach the property worth of Rs 16,000 crore," he said.
 
Kumar also claimed that he is being victimised because through his investigation, ED is about to attach more property and tag more people in relation to the scam.
 
"The investigation done by me in the Rose Valley cases was also appreciated by the PMLA (Prevention of Money Laundering Act) court and the High Court. ED is about to attach more property of Rose Valley as well as the various persons for which the legal formality is under process," he added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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