The Indian government has frozen $11 million that they say is part of a scheme to launder money that involves QNet.
According to a report from MoneyLife on January 18;
Enforcement Directorate (ED), the government agency in India that is in charge of enforcing economic laws and fighting economic crime, has frozen 36 bank accounts belonging to companies, people, and sole proprietorships that are connected to Vihaan Direct Selling India Pvt Ltd.
Vijay Eswaran runs the Malaysian MLM company QNet (right).
QNet runs through a number of “shell” companies outside of Malaysia.
In India, Vihaan Direct Selling India Pvt Lrd is in charge of running QNet.
The ED says that it has frozen more than Rs90 crore, which is about $11 million USD. Raids on homes in Mumbai, Bengaluru, and Chennai happened at the same time as the seizure.
The first time Indian authorities brought a case against QNet was in 2014. Based on BehindMLM’s review of QNet, the company is a recruitment autoship pyramid scheme.
Even though there have been many attempts to regulate the scam, QNet’s history in India has been rocky.
In April 2018, QNet victims protested in Bengaluru because authorities weren’t doing anything. In January 2019, Indian authorities called QNet a threat to national security. In March 2019, a number of Indian celebrities were asked to explain why they supported QNet. In August 2019, an Indian QNet distributor killed himself after going into debt trying to run the business. In August 2019, Indian authorities called QNet a pyramid scheme, but they did so too early.
Even with all of this, India is still the country that sends the most people to QNet’s website. In December 2022, SimilarWeb said that India was the source of 40% of all traffic to the QNet website.
It remains to be seen if the latest arrests have any effect on QNet’s growth in India.
Since QNet was started in 1998, Malaysian authorities haven’t done anything about it.