The Union Ministry of Corporate Affairs (MCA) has initiated proceedings for winding up the activities of Vihaan Direct Selling India Private Limited, the Indian franchise of Hong Kong based MLM firm Qnet. The Ministry also issued look-out circulars against former world Billiards champion and Padma awardee Michael Fereira and eleven others who are associated with the company as directors and promoters. Based on the cases registered by the Cyberabad police, the Registrar of Companies (ORC) conducted inspection into the accounts of the firm and found various violations and fraudulent activities with an intention to dupe investors.

“There are 38 cases, and 70 persons associated with it have been arrested in Cyberabad. There are cases in other parts of the country too,” commissioner VC Sajjanar said. 

The Ministry also issued a public notice alerting the public about the activities of the group. “It is for the information of the general public with a view to make them aware so as to prevent any possible fraud by the company under the garb of direct selling and multi level marketing (schemes),” the public notice said.

The Ministry has also stated that inspections were conducted by the ROC on the group under the provisions of the Companies Act. Prosecutions have been launched by the ROC and LOCs have been issued against 12 persons. The ROC has also filed a petition before the NCLT for winding up the company.

The Ministry also informed the victims that in the garb of direct selling and e-commerce businesses, the company has drained out more than Rs 20,000 crore out of India.

Narendra

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