Hyderabad City Police have busted several direct selling companies, uncovering a bogus company operating within the premises of Swapnalok Complex, where four persons lost their lives in a fire accident. The Central Crime Station has apprehended three individuals involved in fraudulent marketing practices and identified 150 victims who have been deceived.
Hyderabad Commissioner of Police CV Ananad revealed that QNET, a Hong Kong-based direct sales company that has been involved in several court trails and controversies for allegedly scamming many people has relaunched its sub-franchise Vihaan Direct Selling India Pvt. Ltd. Police revealed that 12 accused individuals who established a bogus company named V-Empire at Swapnalok Complex, were identified.
The victims, predominantly unemployed youth and innocent members of the public, were enticed with the promise of monthly returns ranging from Rs 20,000 to Rs 60,000 based on their investments, which ranged from Rs 50,000 to Rs 1.5 lakh. The collective loss suffered by the victims amounts to Rs 3 crore. Additionally, 35 bank accounts belonging to Vihaan Direct Selling Pvt. Ltd. and others, with a total of Rs 54 crore have been frozen.
According to police, the prime accused, Rajesh Khanna, along with others, lured victims by conducting motivation classes and promising lucrative returns through an e-commerce business. They operated a pyramid scheme disguised as a direct selling business, which is strictly prohibited under the Telangana government’s direct selling guidelines issued in 2017.
CP Anand said, “These companies that have been notorious for being involved in such scams, are re-entering the scene with new names. They approach the public with Registrar of Companies certification and people believe that. While Cyber crimes are a major concern, these multi-level marketing schemes are also a major cause of concern where people get cheated.”
The official urged the public to exercise caution and be aware of schemes that may violate local guidelines and regulations, such as the Telangana Direct Selling Guidelines of 2017. He emphasised the importance of reporting any suspicious schemes to the nearest police to protect the public from potential scam.
