Indian authorities have frozen $11 million dollars they allege is part of a money laundering racket tied to QNet.

As per a
January 18th report from MoneyLife
;

Enforcement Directorate (ED), the agency responsible for enforcing economic laws and fighting economic crime in India, has freezed 36 bank accounts relating to various companies, individuals and proprietorships connected with Vihaan Direct Selling India Pvt Ltd.

QNet is a Malaysian MLM company run by Vijay Eswaran (right).

QNet operates outside of Malaysia through various shell companies.

In india QNet operates through Vihaan Direct Selling India Pvt Ltd.

The ED claims to have frozen over Rs90 crore, which comes to $11 million USD. Accompanying the seizure were raids on properties in Mumbai, Bengaluru and Chennai.

The original case filed by Indian authorities against QNet dates back to 2014. As per
BehindMLM’s QNet review
, the company operates as an autoship recruitment pyramid scheme.

QNet has a turbulent history in India, despite regular attempts to regulate the scam.

in April 2018
victims of QNet staged a protest
in Bengaluru over inaction by authorities;

in January 2019 Indian authorities declared QNet a
threat to national security
;

in March 2019 several Indian celebrities were summoned to
explain their endorsement of QNet
;

in August 2019 an Indian QNet distributor
committed suicide after going into debt
trying to work the business;

in August 2019 Indian authorities
declared QNet a pyramid scheme
but prematurely announced the company had been shut down nationally; and

in October 2019
three QNet distributors were arrested
in Hyderabad

MoneyLife documents earlier QNet clashes with authorities predating 2018.

And despite all of this, India remains the largest source of QNet’s website traffic. In December 2022 SimilarWeb attributed 40% of all QNet website traffic to India.

Whether the latest seizures have any effect on the spread of QNet throughout India remains to be seen.

For their part Malaysian authorities have failed to take action against QNet since it was founded in 1998.

🤖 Quick Answer

What action did Indian authorities take against QNet-linked accounts?
Indian Enforcement Directorate (ED) froze $11 million across 36 bank accounts connected to Vihaan Direct Selling India Pvt Ltd, QNet's Indian operating entity. The agency conducted simultaneous raids on properties in Mumbai, Bengaluru, and Chennai as part of investigations into alleged money laundering activities associated with the Malaysian multilevel marketing company.

How does QNet operate internationally?
QNet, a Malaysian MLM company headed by Vijay Eswaran, conducts international operations through various shell companies established outside Malaysia. In India specifically, the company functions under the subsidiary Vihaan Direct Selling India Pvt Ltd, which serves as its primary operating entity for direct selling and distribution activities.

🔗 Related Articles

- QNet scammers sentenced to 10 years in prison in India
- Riway’s business operations suspended for 6 months in Japan
- Darwin Platform Review: Engine oil MLM pyramid scheme
- Lien Ket Viet collapses, managment and insiders charged
- 6 more piracy streambox sellers arrested in the UK