Qnet Scams.

QNet ltd, formerly known as QuestNet, GoldQuest, and QI Limited, is a Hong Kong based direct selling company owned by the QI Group. QNet was founded in Hong Kong by Vijay Eswaran in 1998.

       The company sells a variety of products including energy, weight management, nutrition, personal care, home care, luxury goods, and fashion accessories.

1.  It promotes its products on its website using claims "that would not pass official muster in much of the world."

2.  Eswaran serves as a motivational speaker to those selling Qnet products, holding sessions  that  feature "lasers, dry ice, [and] pyrotechnics" .

The company's marketing strategy follows a multi-level marketing model, depending on independent representatives to refer its products to consumers and receive compensation based on the sales volume of their referrals and the sales volume of other independent representatives in their teams who are arranged in a binary fashion. They also use " an aggressive campaign " of newspaper ads and lawsuits to shut down bad word of mouth.

It has offices in some Asian countries such as Indonesia, Philippines, United Arab Emirates, Thailand, Taiwan and  Vietnam and franchise companies in India and Turkey and it also operates or has operated in other countries such as Saudi Arabia, Egypt, Côte d'Ivoire and Rwanda. 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 denied wrongdoing, and The Philippine and Indonesian courts dismissed cases against it. As of 2014, India is still investigating the company and its franchise Vihaan as well as having arrested nine directors and others involved under its FIR.

NEW DELHI: Enforcement Directorate (ED) has registered a money laundering case in connection with the alleged Rs 425 crore financial fraud involving multi-level marketing firm QNet in which the name of former world billiards champion Michael Ferreira has cropped up. 

Besides Ferreira, actor Boman Irani's son Danesh is also under the scanner in the alleged QNet scam. The Economic Offences Wing (EOW) of the Mumbai police has already questioned Ferreira and Danesh. 

The Mumbai office of ED has registered the case under the Prevention of Money laundering Act (PMLA) after taking cognizance of the EOW FIR filed in this case, official sources said today. 

QNET Controversies

1. Ferreira fails to appear before Mumbai EOW in Rs 450 cr Qnet scam .

Enforcement Directorate (ED) has registered a money laundering case in connection with the alleged Rs 425 crore  financial fraud involving multi-level marketing firm QNet in which the name of former world billiards champion Michael Ferreira has cropped up.

2. Bollywood actor Boman Irani and his son Danesh were involved in the Rs 425 crore QNet scam. 

   Actor Boman Irani denied that he and his son Danesh were involved in a Rs 425 crore scam allegedly led by a multi-level marketing firm QNet, saying he only attended a function organised by the company and that his son's earnings during that period were taxed.

3. Qnet was banned in India in 2009.

4.Complaint given by Gurupreetsing Anand, 40, a computer consulatant from Lokhandawala. 

Gurupreetsing Anand,stated that his wife was duped of Rs 30,000 by some people who had introduced themselves as the independent representatives of QNeT."They had said that one of the bio-products my wife bought could be used to treat my 12-year-old son's brain related diseases," Anand told police. The police suspect that at least one thousand people have been duped in Mumbai alone. The accused had even organized a two-day seminar in a Bandra college on April 14 this year. The investors were promised Rs 35,000 commission/profit for bringing three new members.