Two more QNET representatives arrested in Hyderabad investment fraud case
Hyderabad police have arrested two more representatives of QNET/Vihaan Direct Selling in connection with a multi-level marketing investment fraud case. The accused allegedly induced families to take out personal loans to invest in a scheme that was misrepresented as a legitimate e-commerce venture.
Why it matters
This case highlights the ongoing regulatory and legal challenges surrounding multi-level marketing schemes in India and the financial risks posed to consumers.
The Hyderabad Police’s Economic Offences Wing (EOW) has arrested two more alleged independent representatives of QNET/Vihaan Direct Selling (India) Private Limited from Pune in connection with an investment fraud case in which victims were allegedly induced to invest around ₹28 lakh in a multi-level marketing scheme.
The accused, Padamati Surender Reddy, 55, a Hyderabad native working in Pune, and Parwinder Singh, 37, originally from West Bengal and residing in Pune, were arrested on July 31 and brought to Hyderabad on transit warrants. They were later produced before the XII Additional Chief Judicial Magistrate at Nampally and remanded to judicial custody.
According to the police, the accused, operating as independent representatives of QNET, induced two families to invest in the business after portraying it as an international e-commerce and direct-selling venture that would generate income through product sales and commissions.
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