Bengaluru

Nine people arrested for alleged financial fraud

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QNET claims that claims of complainants were baseless

Nine people have been arrested by the city police in connection with the alleged financial fraud by multi-level marketing firm QNET.

The prime accused has been identified as Jagan, who was arrested along with Rahamathulla, Subhash, Bharath Raj, Arun Kumar, Gowthaman, Satish Kumar, Aditya and Srinivas Chaitanya.

Recently, about 50 people had staged a protest at Freedom Park demanding action by the police. As many as 22 FIRs were registered last year in police stations across the city by 40 people who alleged that the company had taken money from them after assuring them of returns, which failed to materialise. The company has allegedly cheated people to the tune of Rs. 1.28 crore. The company has been operating in Bengaluru for over seven years.

QNET, on Monday, stated that after an internal investigation, the company had ample evidence that the claims of the complainants were misleading and baseless. “The group has alleged charges against Vihaan Direct Selling (India) Private Ltd., which is a sub-franchisee of QNET Ltd. Vihaan neither solicits any investments nor seeks any deposits or registration fees for joining the QNET business...”

Company representatives also said they would pursue legal action against the group for false complaints and defamation of the company and its sales representatives.

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Printable version | Dec 12, 2019 4:33:54 AM | https://www.thehindu.com/news/cities/bangalore/nine-people-arrested-for-alleged-financial-fraud/article23416628.ece

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