Hyderabad: The Hyderabad police, on Monday, March 23, arrested 32 people in connection with four cases of large-scale cheating linked to Vihaan Direct Selling Private Limited, a Hong Kong-based company.
The arrests were made by the Special Investigation Team (SIT) of Cyber Crime station (CCS) across Telangana, Andhra Pradesh and Bengaluru.
In a press conference, Hyderabad City Police Commissioner VC Sajjanar said that Vihaan Direct Selling Pvt. Ltd is owned by the QI Group, also known as Gold Quest and Quest Net.
The company projects itself as a product-based business on the front end, but allegedly runs an illegal money circulation scheme in the background
Apart from youth seeking employment, they target software engineers, business persons and homemakers. “Promising high-returns, the scammers would take advantage and cheat them,” he said.
After gaining trust, the victims were invited to various hotels in Hitech City where the accused explained an investment plan without disclosing the company’s name, and convinced them to invest Rs 5 to Rs 10 lakh, promising returns between Rs 3 to Rs 4 within two years.
Sajjanar explained that the money circulation scheme was based on a binary structure where each member is required to recruit two others, creating a chain. “Recruiters were called ‘upliners’ and people they recruited were called ‘downliners.’ Further, individuals can join the scheme only through an existing member, making recruitment central to the model,” the officer said.
“The enrolment of members with promises of high commissions attracts provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978,” Sajjanar added.
As many as 32 people, including 11 women, have been arrested so far. Some of them are former IT employees.
We have examined 11 victims in four cases who lost nearly Rs 75 lakh. We are also in the process of arresting those the ones who are absconding,” he said.
