32 persons arrested by Hyderabad police for promoting Vihaan Direct Selling company

Hyderabad: Police arrested 32 persons on Monday after conducting raids in Telangana, Andhra Pradesh and Karnataka for allegedly promoting the activities of Vihaan Direct Selling Ltd, a company accused of running a multi-level marketing (pyramid) scheme. Police said the accused targeted software professionals by luring them to join MLM schemes under the guise of part-time jobs."The group is targeting software employees and unemployed youth in the name of part-time employment, making them believe it is an e-commerce business that offers high returns. The selected persons were taken to hotels in Hi-Tech City and briefed about the investment plan to gain their confidence," Hyderabad police commissioner VC Sajjanar said.Vihaan Direct Selling, formerly known as Gold Quest and QNet, is a Hong Kong-based company that allegedly promotes MLM schemes. "The company targets software employees, businessmen, housewives and part-time job seekers. It pushes several Ponzi and binary schemes," police said, adding that those involved in digital marketing for the company would also face action.Police said the accused convinced investors that by putting in 5 lakh to 10 lakh, they could earn returns of 3 crore to 4 crore within two years."Initially, the accused did not reveal that the business they were promoting was linked to QNet, which follows a multi-level marketing model. They showcase sale of products on the front end, but actually promote an illegal money circulation scheme by promising huge commissions or income on the enrolment of new members," Sajjanar said.Of the 32 arrested, 11 are women. Each accused had a different role, including social media promotion, training and recruitment. "Unlike in the past, QNet is now targeting persons from lower-income groups and collecting money ranging from 4 lakh to 8 lakh at the entry level while offering enrolment," joint commissioner of police (Special Branch) SM Vijay Kumar said.Police also referred to various high court and Supreme Court judgments in which judges criticised money circulation schemes and observed that investors are the ultimate losers. Officials seized several products allegedly promoted by the company through the MLM scheme.