Cops Bust Ponzi Scheme, Avert Rs 500 Crore Losses
CCS says IGNITE India was a new avatar of a money circulation scheme
Hyderabad: The Hyderabad city police on Thursday said they had cracked down on an alleged QNET-linked money circulation network operating under the name IGNITE India, arresting six persons and averting what they described as a potential Rs 500 crore fraud.
Speaking to media persons on Thursday, Hyderabad police commissioner V.C. Sajjanar alleged that the syndicate, through multiple avatars over the past 25 years, had cheated victims and recruits to the tune of nearly Rs 7,500 crore. “Just 18 days ago, they came with a new avatar, and we successfully tracked down the accused before they could begin full-fledged operations,” Sajjanar said.
According to police, the network originated as GoldQuest in 2001, later operated as QuestNet, and subsequently as QNet or Vihaan for nearly 15 years before resurfacing as IGNITE India shortly before the latest action.
He said the alleged masterminds operating from Dubai were likely to be arrested with international cooperation, and the matter would be taken up with the Union Ministry of Corporate Affairs, the Serious Fraud Investigation Office (SFIO) and the Enforcement Directorate (ED).
Sajjanar alleged that the operation functioned as a multi-level marketing and money circulation scheme and said losses could have reached `500 crore if the racket had continued.
Despite repeated warnings and past legal action against similar entities, the commissioner said fraudulent money circulation schemes continue to reappear in different forms, drawing unsuspecting victims into the same cycle. He warned that individuals enrolling others knowingly and routing funds through such schemes would face criminal liability under laws governing banned money circulation activities.
Central Crime Station (CCS) sleuths arrested six persons identified as Oneal Gupta, alleged IGNITE team leader; Dinesh Kumar Saahil and Priyanshu Saxena, directors of Indi Konnect Ventures Private Limited; Praveen Kumar Dakalia and Paritosh Kumar Dakalia, directors of Parasnath Mercantile Private Limited; and Riyaz, a field recruiter.
CCS deputy commissioner of police S. Chaitanya Kumar said, “This is the same QNET network but operating under a different name. It is a money circulation scheme disguised as product selling. There is also money laundering involved in this chain system.”
He said simultaneous raids were conducted in Kerala, West Bengal, Delhi and Uttar Pradesh. Two alleged masterminds, identified as Brijesh and Arpit, are believed to be operating from Dubai and coordinating overseas activities.
Police said three complaints were received in Hyderabad between June 5 and June 6 from victims who allegedly paid amounts ranging from Rs 61,639 to Rs 63,899, totalling Rs 1.87 lakh. Despite different recruitment channels, all payments were allegedly routed to a single bank account linked to Parasnath Mercantile Private Limited, indicating a coordinated collection mechanism.
Though three FIRs were initially registered separately, investigators flagged a possible resurgence of a QNET-linked entity and transferred the case to the CCS for detailed investigation.
Referring to a 2012 SFIO report, Sajjanar said GoldQuest and QuestNet had been identified as Ponzi schemes and flagged as a potential national security concern due to alleged recruitment of defence personnel, government employees and their families.