I am taking the initiative to complain against QNET which is operating MLM model.
This scam is around Rs. 7000 crs and more than 5 lacs people lost their hard earned money.
QNet Ltd, formerly known as QuestNet, GoldQuest, against which the legal action was initiated by the Government of India. Goldquest and Questnet closed in 2009 after duping lakhs of investors in India.
QNet Ltd, formerly known as QuestNet, GoldQuest, and QI Limited, is a Hong Kong based direct selling company owned by the QI Group.
The company's marketing strategy follows a multi-level marketing model, depending on independent representatives (IR) to refer its products to consumers (Close friends & relatives) and receive compensation based on the sales volume and the sales volume of other independent representatives in their teams who are arranged in a binary fashion.
A pyramid scheme is a non-sustainable business model that involves promising participant’s payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than supplying any real investment or sale of products or services to the public. Pyramid schemes are a form of fraud.
The QNet had previously operated Multi-Level Marketing (MLM) schemes in India under the name of Gold Quest International Pvt Ltd and Quest Net Enterprises Pvt Ltd against which the legal action was initiated by the Government of India. Goldquest and Questnet closed in 2009 after duping lakhs of investors in India. Now QNet is duping investors worldwide. In many countries QI group is already banned. The old members of these above mentioned two companies were shifted into the new company called Vihaan Direct Selling (India) Pvt Ltd, Bangalore, Karnataka, India as an up line Independent Representatives to disguise the innocent new members. The said old members of Quest Net Enterprises Pvt Ltd may have been migrated to the new company Vihaan Direct Selling (India) Pvt Ltd to arrange them as Up Line of the binary tree of the scheme of the Company. Therefore, the real beneficiaries will be the original older members of Gold Quest International Pvt Ltd and Quest Net Enterprises Pvt Ltd and the new Down Line members will be suffering loss after some period of time as the scheme progresses. The company Vihaan Direct Selling (India) Pvt Ltd which is operating the web site www.qnetindia.net as an E- Commerce Venture to hide the fact that they are operating an illegal product based Multi-Level Marketing (MLM) Scheme and cheating innocent people under the garb of selling products online for which the prices of the Products/Services are not displayed and no ordinary citizen can purchase any of the Products/Services without entering the details of Independent Representative for reference. Apart from this, in-spite of having Indian website, company IRs are purchasing through global website i.e. https://portal.qnet.net which does not have option to purchase in India by entering wrong country of residence. All these so called purchase are illegal. Money is being laundered out of India.
QNet scam is investigated by Mumbai EOW for cheating and forgery under relevant sections of the Prize, Chits and Money Circulation Schemes (Banning) Act, 1978 and MPID act.
Recently Bombay High Court given the Judgment, in which it mentions -
"It is a chain scheme where a person is fooled and then he is trained to fool others to earn money. For that purpose, workshops are conducted where study and business material is provided with a jugglery of words, promises and dreams".
As per RBI circular dated 1-January-2015, RBI cautioned the public against Multi-level Marketing (MLM) activities so that investors do not fall prey to unscrupulous entities.
The Reserve Bank has also said that acceptance of money under Money Circulation/Multi-level Marketing/Pyramid structures is a cognizable offence under the Prize Chit and Money Circulation (Banning) Act 1978. Members of public coming across such offers should immediately lodge a complaint with the State Police.
Secret SFIO report says MLM, Ponzi schemes ‘a threat to national security’. The Serious Frauds Investigation Office (SFIO) in its detailed ‘secret’ report on GoldQuest International Pvt Ltd and Quest Enterprises India Pvt Ltd has called multi-level marketing (MLM) schemes run by overseas operators as “a potential threat to national security”. The secret report (as it is labelled and not available in public domain) came out in 2012, but, there is no action taken for four long years to stop MLMs and Ponzi schemes like QNet from spreading.
QNet practices Binary Chain system to sell their products i.e. MLM (Multi-level marketing). This is a practice where company wants to sell their garbage products or overpriced products viz e-learning courses, holiday packages, bio disc, Chie pendent by talking rubbish about SELL MORE AND EARN MORE. The products are overpriced and not worth value for money. A business creates value through services or products and earns money for the value produced. That’s why QNet is failed in direct marketing and promoting IRs to sell more and earn more. QNet sell is not the product but the Business plan; they sell a dream of becoming rich quickly. Everyone in QNet knows that the products are so overpriced that no one will purchase them without a Business Plan. To earn money through commission from QNet, one has to sale more i.e. enroll more people member in the chain / pyramid by selling scrap products price between 30,000 to 10 lakhs. The actual cost of the products is nearly zero. In fact products are just a hiding platform that QNet is selling something for money. Since the upline‘s income is dependent on the recruiting success of downline participants, the upline is motivated to promote aggressive recruitment. This pressure from above and below can create explosive growth in recruitment and purchases by participants and sympathetic family members.
Independent Representative (IRs) of Company conduct seminars and association, where they brainwash by using jugglery of words by showing some big dreams that you will get 5 crore within 4 to 5 years, and the hilarious thing is that they will even prove it by mathematical means and of course by hiding some mathematical truth. The motto of these training is to motivate new joiners. They tell you are that you are in QNet, a global company to do well for others, to make others financially free; you are doing service to others. This is completely rubbish. They are fooling all the agents. Thus QNet has to constantly motivate them with such fake things so that they keep selling the products.
If you have to be successful in QNet, then you have to have huge down line who have signed up under you. More than 90% people in QNet fail. Money is earned with commission based on volume of sale by selling fake product to 1000s of people, who will curse you for their lifetime.
Many countries have already banned QNet, but still they are operating because of lack of law and poor Judiciary system
QNet, earlier was operating in India with different name, i.e. GoldQuest & QuestNet. In the year 2001, one Ms. Pushpam Appala Naidu, MD got registered Gold Quest International Private Limited Company under the Companies Act, 1956 at Chennai.
The charge sheet filed against Quest Net Enterprises India Pvt Ltd incriminating 25 accused including Dato Vijay Eswaran, Group managing director, Malaysia and Ms Pushpam Appala Naidu, managing director, India was pending before the Chief Metropolitan Magistrate, Egmore, said an official release. In the charge sheet, 583 witnesses have been cited and 818 numbers of documents have been lodged in support of prosecution. Further 32,011 complaints preferred by the victims also included in the charge sheet. As per investigation, the company was enrolled 3,68,994 (3.68 lacs) members (IRs) all over India and received Rs.11,12,99,10,958/- (1112 Crs). Out of 3,68,994 independent representatives (IR), 1,07,999 IRs hail from Tamil Nadu.
In case of GoldQuest, the main object of the company is “to establish a market of import and export of Numismatic and other precious and non-precious metal products including jewellery made from Gold, Platinum, Palladium, Radium and Silver and precious and non- precious stones” and develop it in India and abroad. The Directors have established a chain link system and collected depositors from the public by luring them that the numismatic coin would fetch them good returns and collected more than 110 crores in Andhra Pradesh. They could not give the promised product to the depositors and thus cheated.
Egypt, India, Iran, Indonesia, Nepal, Rwanda, Saudi Arabia, Sri Lanka, Sudan, Syria, and Turkey sued Qnet for allegedly operating a product-based pyramid scheme. The company and its franchise Vihaan are also being investigated in India.
Australian Politician Cameron Thompson, the Nepalese Home Ministry, the Sri Lankan Central Bank, and the Iranian Government have described GoldQuest aka QNet as a pyramid scheme.
In 2002, the Australian Office of Consumer and Business Affairs listed the QNet Company as one of 61 alleged pyramid schemes.
The Nepalese Home Ministry banned the QNet company from operating in Nepal in 2003.
Chief of the foreign exchange department of the Nepal Rastra Bank, said GoldQuest aka QNet was "a hundred percent fraud".
The Sri Lankan government banned GoldQuest aka Qnet in 2005, claiming that the company had caused 15 million dollars to leave the country.
In 2005, the Iranian government also banned GoldQuest means QNet, after prosecutors found that company activities had "led to the exit half of a billion dollars from Iran.
In 2009, the Sudanese government banned QuestNet means QNet after allegations were made relating to poor product quality and non-receipt of products.
In India, the Economic Offenses Wing (EOW) of the Central Bureau of Investigation of India investigating the case and Members of the company were arrested for cheating and case is pending for hearing.
The business of QNet is to sell the DREAM of Work for a couple of years and earn forever, doing nothing to the tune of 5 Crs in 4 to 5 years. Needless to say, there are millions of people across the world, who buys into this dream.
Most of the money is being laundered out of India.
As per the binary chain / Pyramid system, there will be market saturation & 50% of public will lose the money. In fact mathematical data says, around 85% of the money is being goes to promoters of the scheme.