Court Delivers Guilty Verdict and Heavy Sentences
On March 31, 2026, an Andhra Pradesh court sentenced three senior QNet figures — Augustine Joseph, R Kamakshi Ranganathan, and Pushpam Appala Naidu — to 10 years in prison each, plus fines of 100,000 INR (approximately $1,150), per The Times of India. The trio served as directors of M/S Quest Net Enterprises India Pvt Ltd in Chennai and were convicted of cheating, criminal conspiracy, and violations of the Prize Chits and Money Circulation Schemes (Banning) Act, per.
QNet’s Long History of Fraud in India
QNet (originally QuestNet) launched in 1998 and quickly expanded across India as an MLM pyramid scheme run from Malaysia by Vijay Eswaran. The company has faced repeated enforcement actions:
- 2013: Economic Offences Wing (EOW) froze multiple bank accounts.
- 2014: Court order prohibited Vihaan Direct Selling (QNet’s Indian arm) from operating.
- 2016: Delhi EOW filed the first criminal complaint; Michael Ferreira (majority shareholder) was arrested.
- 2018–2024: Multiple victim protests, a promoter suicide, government corruption probes, celebrity summons, shutdown orders, arrests in Odisha, Jaipur, and Hyderabad, and asset freezes totaling millions of dollars.
- December 2024: Central Consumer Protection Authority issued a formal fraud warning.
- March 2026: 32 additional QNet promoters arrested in Hyderabad.
Despite these actions, QNet continues operating illegally in India under names like Vihaan Direct Selling Ltd., with 153,000 monthly website visits as of February 2026 (top sources: India 21%, Thailand 14%, US 5%), per SimilarWeb.
Why This Sentencing Matters
The 10-year sentences represent one of the strongest judicial blows against QNet promoters in India so far. However, the company’s persistent activity and Eswaran’s status as a wanted fugitive show that enforcement remains fragmented. The convictions highlight the real criminal consequences of promoting pyramid schemes disguised as legitimate MLM or direct-selling businesses.
Investor Caution
QNet and similar MLM schemes continue to cause significant financial harm. Investors should treat any opportunity promising high returns through recruitment or “product” purchases with extreme skepticism. Always verify legitimacy through official government sources before committing funds.
Key Takeaway: Pyramid schemes eventually collapse, leaving most participants with losses. Three directors now face a decade in prison — a clear warning for anyone still involved in QNet or similar operations in India.
