QNet Under Scrutiny For Alleged Fraud Following Tragic Fire At Swapnalok Complex

The direct selling company QNet, which recently lost six employees in the devastating fire at Swapnalok Complex, is now facing allegations of deceiving young people with promises of significant financial returns. The police have reported that 25 individuals have accused QNet of fraud, leading to three cases being filed against the company, with the remaining complainants set to serve as witnesses.

According to a report by TOI, two of the complainants mentioned that they had joined the business through two women who tragically died in the fire. On Wednesday, Pasula Nagaraju (23), a private employee from West Marredpally, filed a complaint with Mahankali police alleging cheating. Nagaraju, originally from Karimnagar, recounted: "My cousin informed me about QNet, claiming that one could earn between Rs 15,000 to Rs 60,000 per month through direct selling. Following his advice, I visited the Swapnalok Complex where employees of V-Empire (Q-Net) conducted a casual interview with me. They didn't discuss business specifics but informed me that I was selected. Following their guidance, I paid a registration fee of Rs 1.3 lakh in December 2022 and joined the business." Nagaraju later discovered that QNet was a Malaysia-based company partnered with Vihaan Direct Selling (India) Pvt Ltd, managed by Rajesh Khanna from Bengaluru, and operated in Hyderabad under the name V-Empire by Upendranath Reddy.

Nagaraju identified several individuals involved, including Pavan Nimma, Nagadurgamani, Ramesh Katakam, and Shivanaga Mallaiah, who worked directly under Reddy. Shivanaga and his subordinates—Sravani Reddy, Pathan Azhar, and Ganesh Bhanu—managed the Swapnalok Complex branch. "Trusting the promises made by the accused, I spent a total of Rs 1.8 lakh. However, I have not received any returns. When I asked for a refund, they threatened me with legal action and a police complaint," Nagaraju stated in his complaint.

Based on his report, the police have filed charges against QNet, Vihaan Direct Selling (India) Pvt Ltd, 'V-Empire', and 11 others under IPC sections 420, 406, 506, and sections 3, 4, 5, 6 of the Prize Chits and Money Circulation Schemes (Banning) Act. Additionally, two more cases were registered at Mahankali Police Station based on similar complaints from M Naveen (23) of Warangal and V Anand (22) of Khammam, who claimed losses of Rs 3 lakh and Rs 2 lakh, respectively. Naveen had joined through fire victim Sravani, while Anand was introduced by another victim, Triveni.