EOW Seizes Luxury Vehicles and Digital Evidence in Suspected Pyramid Scheme Investigation
The Economic Offences Wing (EOW) of the Central Crime Station (CCS), Hyderabad Police, has arrested five individuals alleged to be associated with QNET in connection with a suspected pyramid scheme and money circulation fraud involving ₹7.5 lakh. The arrests were made during a raid at a resort in Candolim, Goa, where the suspects had reportedly gathered for a company-related event.
Police said they also seized three luxury vehicles, five mobile phones, and electronic devices containing digital evidence. The investigation is ongoing, and the allegations have not been adjudicated in court.
The case underscores the importance of investor due diligence, financial transparency, and auditing services in india in identifying and preventing fraudulent investment schemes.
Complaint Triggered Investigation
According to Hyderabad Police, the case was registered following a complaint filed by Sardar Sharanpal Singh.
The complainant alleged that he came into contact with the accused through Instagram while searching for gym space in Hyderabad and Bengaluru. He was later invited to Bengaluru, where he was allegedly presented with a business opportunity linked to QNET.
Police stated that the complainant was allegedly persuaded through presentations, testimonials, and promises of substantial financial returns to invest ₹7.5 lakh, beginning with a ₹30,000 booking amount.
Complainant Later Approached Police
According to the complaint, the investor later conducted his own research into the company's business model and claimed he found information associating QNET with alleged pyramid and money circulation schemes.
He also alleged that the accused preferred phone calls and online meetings instead of written communication and advised him to keep the proposal confidential.
These allegations form part of the police investigation.
Goa Resort Raid Leads to Arrests
During the investigation, Hyderabad Police received intelligence that several alleged QNET representatives would be attending an event in Candolim, Goa.
A special EOW team travelled to Goa and conducted a raid at the resort.
Police stated that some suspects allegedly attempted to leave the premises after noticing law enforcement officers but were subsequently apprehended.
The arrested individuals were identified as:
- Mohammed Fawaz
- Aswin Suresh
- Vinu Johnson D'Cruz
- Manoj Ravindran Nair Subbalakshmi
- Varikottuchalil Sivarajan Balraj
All are reported to be residents of Kerala.
A Goa court granted a transit warrant for their transfer to Hyderabad for further investigation.
Police Probe Recruitment Model
Investigators allege that the suspects recruited individuals through:
- Social media platforms
- Face-to-face meetings
- Online presentations
Police further allege that participants were encouraged to recruit additional members in exchange for financial incentives.
Authorities are examining the scale of the alleged network and the total amount of money reportedly collected.
Digital Evidence Under Forensic Examination
During the searches, police seized:
- Toyota Fortuner
- MG Hector
- Kia vehicle
- Five mobile phones
According to investigators, the devices contain:
- WhatsApp chats
- Instagram conversations
- Emails
- Financial transaction records
The electronic evidence is undergoing forensic examination to identify other possible participants and victims.
Public Advisory
Hyderabad Police have advised the public to carefully verify the legitimacy of investment opportunities promoted through social media and to exercise caution when approached with schemes promising unusually high financial returns.
The investigation remains ongoing.