Hyderabad: Hyderabad City Police busted an alleged MLM fraud network that operated under the guise of direct selling and multi-level marketing and arrested six people linked to the operation.
The Economic Offences Wing (EOW) uncovered the network’s activities and claimed it prevented a suspected fraud estimated at nearly Rs 5,000 crore.
Police said the group operated through a newly launched entity named Ignite.
Investigators suspect the operation has links to the previously banned QNet network.
The accused allegedly expanded their activities across Telangana, Kerala, West Bengal, Uttar Pradesh and Delhi.
MLM fraud network collected money through recruitment model
According to police, the accused approached victims through WhatsApp, Zoom calls and shopping malls.
They allegedly collected about Rs 60,000 from each recruit and routed the funds to an account belonging to Parasnath Mercantile Private Limited in Kolkata.
The investigation began after three victims lodged complaints on June 5 and 6.
Police said the victims collectively lost Rs 1.87 lakh.
Meanwhile, investigators identified similarities between the new operation and the previously banned QNet model.
Subsequently, officials transferred the case to the EOW of the CCS for detailed investigation.
Police said the international network had operated under different names, including GoldQuest, QuestNet, QNet and Ignite.
Further, investigators alleged that the organisation launched a front company named Indi Connect Ventures in India on May 18, 2026.
The accused allegedly promoted products such as Semetra, Activa, Brush-O and an AI learning platform called brAInify.
According to police, the promoters made health and wellness claims without approvals from recognised regulatory authorities.
Police identified the arrested persons as Oneyal Gupta, Dinesh Kumar Sahil, Priyanshu Saxena, Praveen Kumar, Paritosh Kumar and Riyaz.
Authorities registered cases under relevant provisions of the Bharatiya Nyaya Sanhita, the Telangana Protection of Depositors Act and the Information Technology Act.
Meanwhile, police initiated steps to seek Interpol Red Corner Notices against alleged masterminds Pathman Senathiraja and Vijay Eswaran, who remain absconding.
Officials also warned the public against joining such schemes or recruiting others into similar networks.