Hyderabad: The Economic Offences Wing (EOW), CCS, Detective Department, Hyderabad, arrested five independent representatives of QNET in an alleged QNET fraud case. Police arrested them from Novotel Resort and Spa in Candolim, Goa, on July 18. Officers also seized three luxury vehicles and digital evidence.
Police registered the case under provisions of the Bharatiya Nyaya Sanhita (BNS), the Telangana Protection of Depositors of Financial Establishments Act, the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, and the Information Technology Act.
The arrested accused are Mohammed Fawaz, Aswin Suresh, Vinu Johnson D’Cruz, Manoj Ravindran Nair Subbalakshmi and Varikottuchalil Sivarajan Balraj. All are natives of Kerala.
According to the complaint, Sardar Sharanpal Singh was searching for gym space in Hyderabad and Bengaluru. During that time, Mohammed Fawaz contacted him through Instagram. Later, the accused allegedly invited him to Bengaluru by offering a lucrative business opportunity.
QNET fraud complaint led to investigation
Police said the accused introduced the complainant to QNET through Vihaan Direct Selling India Pvt. Ltd. They allegedly projected it as a legitimate luxury goods business linked to the QI Group.
Investigators said the accused used fabricated success stories and video presentations. They also used peer pressure and misleading claims to persuade the complainant to invest ₹7.50 lakh.
The accused allegedly pressured him to pay ₹30,000 immediately. They claimed the payment would secure his position in the business and entry to a leadership event in Goa. The complainant transferred the money through UPI to Mohammed Fawaz’s HDFC Bank account.
However, the complainant later consulted his wife and a friend. He then verified the company’s background independently. After finding reports linking QNET to alleged pyramid schemes, he approached Hyderabad Police. He also alleged that the accused discouraged written communication. Instead, they insisted on phone calls and Zoom meetings.
Goa operation results in five arrests
Meanwhile, investigators received information that several QNET representatives would attend the company’s Ocean 25th anniversary event in Goa. A special police team travelled to the venue.
Police said some suspects tried to flee after noticing the officers. However, the team apprehended the five accused. Officers later produced them before the Judicial Magistrate First Class in Mapusa. The court granted a transit warrant for their transfer to Hyderabad.
Investigators said Mohammed Fawaz contacted the complainant and received ₹25,000 in his bank account. Meanwhile, Aswin Suresh allegedly narrated fabricated success stories to encourage investment.
Police alleged that Vinu Johnson D’Cruz explained the binary recruitment model. Further, Manoj Ravindran Nair Subbalakshmi and Varikottuchalil Sivarajan Balraj allegedly recruited several people. They also promoted the business through meetings, Zoom sessions and social media.
Police seized a Toyota Fortuner, a Kia vehicle and an MG Hector. Officers also seized five mobile phones. The devices contained WhatsApp chats, Instagram messages, emails and financial transaction records.
Further, investigators said efforts were continuing to trace the remaining absconding accused. They are also identifying others allegedly connected to the illegal activities.
Hyderabad Police advised the public not to invest in or promote QNET or similar MLM, pyramid or money-circulation schemes. They also warned that people promoting such schemes could face criminal prosecution under the law.