Siddipet: Youth dies by suicide after losing money in QNET-linked scam; two held

Siddipet: A 26-year-old youth from Siddipet district took his life after losing lakhs of rupees in an online investment scam linked to the controversial QNET network.

Police have arrested two persons for abetment to suicide and illegal money circulation under multiple sections of the Bharatiya Nyaya Sanhita (BNS) and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

Victim identified as Velluru Resident

Siddipet Police Commissioner SM Vijay Kumar has said that the police investigations reveal that Harikrishna, a resident of Velluru village in Wargal mandal, had been drawn into the QNET network after being promised sky-high returns on modest investments.

Harikrishna’s father, Badugu Nagaraju (57), lodged a complaint stating that his son had borrowed money to invest in QNET and other online games, eventually losing around Rs 8 lakh. Unable to bear the financial strain and psychological distress, Harikrishna reportedly wrote a suicide note and hanged himself at his residence on October 9, 2025, around 3:30 p.m.

How the QNET scam lured the victim

During the investigation, police found that Harikrishna was introduced to the scheme by two locals — Kalvala Manikantha Reddy (23) of Velluru and Uppalapu Alekhya (25) of Chettla Gouraram village in Medak district.

They allegedly convinced him that investing money in QNET would yield huge profits. In July 2025, Harikrishna attended a meeting organized by the accused at a hotel opposite Tank Bund in Secunderabad, where he paid ₹4 lakh for a membership.

In return, he received a “Trip Saver” coupon valid for ten years and a wristwatch as part of the so-called “business promotion.” Later, he attended multiple seminars in Hyderabad with the accused, where he was told that the business operated through Vihaan Direct Selling (India) Pvt. Ltd., an Indian associate of QNET.

However, Harikrishna later realized that the scheme was a pyramid-style money circulation operation disguised as a product-based business. When he understood that genuine sales or returns were impossible without recruiting others, he reportedly fell into depression.

Police crack down on Accused

The police have arrested both Manikantha Reddy and Alekhya, who have been remanded to judicial custody. Commissioner Vijay Kumar stated that efforts are underway to trace other members involved in the racket.

“QNET and similar money circulation schemes are pure fraud. They promise profits but deliver losses and despair,” the Commissioner said.

He confirmed that the accused were collecting large sums from individuals under the guise of business investments and diverting them through online channels.

Commissioner’s stern warning to Citizens

Police Commissioner Vijay Kumar urged people not to fall prey to online betting, investment apps, or get-rich-quick schemes.

“Money circulation networks like QNET are nothing but traps. There is no genuine product or productivity involved. Such schemes have been banned since 1978, yet continue to deceive the public,” he cautioned.

Calling QNET “a financial epidemic,” the Commissioner warned that even celebrities endorsing such platforms are not exempt from legal action. He advised citizens to remain alert against cyber frauds and report suspicious activities immediately by contacting: Cyber Helpline 1930, Dial 100, or Siddipet Police Control Room: 8712667100.