Hyderabad: Former world billiards champion and Padma Bhushan awardee Michael Ferreira and three others involved in the multi-level-marketing company QNet scam have been arrested by the Central Crime Station police. The suspects, who had earlier surrendered before the police in Mumbai, were brought to Hyderabad on transit warrant. The CCS police had submitted a petition seeking their custody to investigate the case registered in Hyderabad. Around a 100 youths from Telangana were cheated by the QNet scam last year.
Michael Fereirra, is a director of Vihaan Direct Selling Pvt. Ltd, the master franchisee of QNet in India. Central Crime Station DCP Avinash Mohanty said that on October 13, 2015, one of the complainants Suman Ghosh, an assistant manager at a private bank here, filed a complaint saying that he had paid Rs 16 lakh to Vihaan Direct Selling India Pvt Ltd, as they had promised a partnership in QNet schemes. But, he said they did not give him any business even weeks after collecting the amount.
“Police booked a case under Sections 406 and 420 and the Prize, Chits and Money Circulation Schemes (Banning) Act against the management of Vihaan Direct Selling India,” Mr Avinash Mohanty said. “We received information from the Mumbai police that the four suspects, including Michael Ferreira, were arrested and remanded to judicial custody. We then filed an application at a court in Mumbai seeking their custody in connection with the case registered by us,” he added.
Top QNet officials and their franchisees get 40 per cent commission for every investment and product sold, experts said. Police said around 175 people lost several lakhs in the scam in just an year.
High Court stays further probe:
The four suspects involved in the QNet case, including Padma Bhushan awardee Michael Ferreira, moved the Hyderabad HC and secured an order staying further investigation in the case. However, the police said that they will file a counter petition and get it revoked. “We came to know that the suspects won a stay order from the HC. We are filing a counter petition immediately to get it vacated,” said CCS DCP Mohanty.
He said that after the arrest, the suspects were sent back to Mumbai. “They were brought to Hyderabad on a prisoner’s transit warrant. We will investigate the case when the stay is revoked,” the DCP said. Police officials said they will be able to take the suspects into custody again for further investigation.
