32 arrested across Telangana, Andhra Pradesh and Karnataka in QNet scam

Hyderabad Police have busted a multi-crore illegal money circulation racket allegedly linked to Vihaan Direct Selling Pvt Ltd , associated with the controversial QNet multi-level marketing network , arresting 32 people in a coordinated inter-state crackdown across Telangana, Andhra Pradesh and Karnataka.

Hyderabad Police Commissioner V C Sajjanar said nearly 30 police teams conducted simultaneous raids across the three states in an operation led by the Central Crime Station (CCS) . The raids were carried out at multiple locations, including Bengaluru, resulting in the arrest of 32 accused, among them 11 women.

Police said many of the accused were IT professionals or former employees who allegedly recruited and trained new members for the scheme. Investigators have so far examined 11 victims in four registered cases who together reported losses of around ₹75 lakh. Officials said the number of victims could increase as more complaints are being examined.

According to police, the racket operated through Vihaan Direct Selling Pvt Ltd, a franchise for the Hong Kong-based QNet brand owned by the QI Group. The company previously operated under names such as Gold Quest and Quest Net.

The accused allegedly targeted software professionals, businesspersons, homemakers and unemployed youth by promoting part-time jobs, e-commerce ventures and investment plans promising huge returns. Victims were told they could earn up to ₹4 crore within two years by investing between ₹5 lakh and ₹10 lakh.

Investigators said recruits were invited to presentations at hotels in Hyderabad’s Hi-tech City, where organisers initially avoided revealing the company’s identity or the binary enrolment model used in the scheme.

Police said the network used products such as wellness items and vacation packages as a front , while earnings depended largely on enrolling new members.

Officials said the model violates the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 , and warned that promoting or participating in such schemes is punishable. Investigations are ongoing and more arrests are likely.