Cyberabad police apprehended 58 persons in connection with an alleged multi-level marketing scam.
Vihaan Direct Selling Pvt. Ltd. is a sub-franchise of the Hong Kong-based QI Group, and is involved in ponzi and binary schemes as well as product-based vacation packages, among others, all of which which are illegal, said police. Q Net is a subsidiary of QI Group and operates in countries such as India, Nepal, Philippines and Cambodia.
Police said promoters of Vihaan Direct Selling ‘trap’ interested persons by explaining to them an array of business packages. They organise motivational talks and once the person is on board, he or she pays a sum of money and gets products to sell. A commission then goes to the promoters.
The newly inducted person, called an independent representative (IR), is then asked to bring on board two more persons. As the number of persons increases, the ‘upliners’ get more commission.
Police said that at a later stage, finding and getting on board such IRs becomes unsustainable. Eventually, the scheme collapses.
Of the 58 arrests, 51 were made in Hyderabad, five in Bengaluru and one each in New Delhi and Eluru. Complaints against accused had been registered at several police stations including those at Gachibowli, KPHB, Madhapur, Miyapur and Raidurgam.