Operation Ignite: Hyderabad Police Busts Inter-State Money Racket, 6 Held
The Serious Fraud Investigation Office (SFIO), in a classified 458-page report (2012), declared GoldQuest and QuestNet to be Ponzi scheme companies and described the network as a potential threat to national security
Hyderabad: The Central Crime Station (CCS) of Hyderabad City Police has arrested six persons across Kerala, West Bengal, Delhi, and Uttar Pradesh in Operation Ignite Crackdown — targeted early-intervention operations to disrupt a sophisticated inter-state money circulation scheme operating under the name IGNITE.
Oneal Gupta, IGNITE team leader and recruiter, 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 in Kolkata, and Riyaz, a field recruiter from Kerala, according to a press release issued by Hyderabad police on Thursday.
It said IGNITE is run by the same principals who previously operated the banned QNET and Vihaan Direct Selling network. Three complaints were received between June 5 and 6 from victims in Hyderabad who had paid between Rs. 61,639 and Rs. 63,899 each — a total of Rs. 1.87 lakh — after being recruited through different channels.
According to the release, despite different approaches, all three victims were directed to pay into the same bank account belonging to one: Parasnath Mercantile Private Limited, which confirmed a single, coordinated collection infrastructure.
While the three FIRs were initially filed separately, the investigating officers immediately flagged potential resurgence of a new QNet entity and the case was transferred to CCS DD by the Commissioner of Police for initiating investigation under relevant provisions.
As per initial investigation, IGNITE is a multi-level marketing scheme headquartered at Hong Kong — the same city that has served as the control centre for this network across all its avatars. Its founder, Pathman Senathirajah, is named as accused in the Mumbai Economic Offences Wing FIR (Rs. 425 crore) and the Tamil Nadu GoldQuest FIR, and is currently evading arrest from Hong Kong. Its Managing Director, Adly Hassan, was QNET's top India earner for years.
Every V Partner and top recruiter in IGNITE's India network, including the arrested Oneal Gupta, previously operated within QNET. IGNITE's Indian front company, Indi Konnect Ventures Private Limited was incorporated on May 18 2026 — just 18 days before the first FIRs were registered.
As per initial investigation, the Indian entity was created by a set of QNet senior leaders who are now associated with Ignite. Its Memorandum of Association openly declares the intention to pay commissions, bonuses, and rewards for enrolling and recruiting direct sellers which fits the precise definition of a money circulation scheme under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
Its domain was registered nine days before the company was incorporated, confirming a pre-planned and professionally guided international operation with deep Indian links. Based on investigation into how the money was collected and subsequently reflected into IGNITE accounts, Hyderabad City Police believes that there is an international money moving racket that is working behind the scenes
The Serious Fraud Investigation Office (SFIO), in a classified 458-page report (2012), declared GoldQuest and QuestNet to be Ponzi scheme companies and described the network as a potential threat to national security — because victims systematically included personnel from the Defence services, government ministries, and their families.
IGNITE in 2026 is targeting the same demographic. Video evidence of Indian armed forces personnel being actively recruited has been secured by the investigation. The initial investigations indicated that none company’s products carries approval from any Indian or international regulatory authority for the health or wellness claims made for them.
In all three FIRs, victims were told that refunds would be released only if they recruited two new members into IGNITE or maintained USD 200 in their IGNITE e-wallet. This confirms that the product purchase is incidental and the enrolment fee is the real transaction. This is the defining characteristic of a prohibited money circulation scheme.
As per SFIO report, in the past, the QNet entities have always followed the practice of directly setting with complainants, thereby escaping judicial scrutiny of its unfair practices. When the number of litigants and law enforcement heat increases, they quickly morph into their next avatar, the release added.
