The Economic Offences Wing (EOW) of Odisha police has arrested a person for his alleged involvement in the Q-Net fraud case, officials said on Tuesday.
The accused Arabinda Kumar of Kendrapara district was arrested on the basis of a case registered against the Q-Net Ltd., a Hong Kong-based multi-level marketing company and its franchise M/s. Vihaan Direct Selling (India) Private Limited in September 2019.
According to an official statement of the EOW, the above companies represented through their directors and promoters namely Chandan Kumar Mohalik, Sarat Parida, Devabrat Harichandan, Prasant Kumar Mohanty, Arabinda Kumar and others were running illegal money circulation scheme in the guise of direct selling multi-level marketing (MLM), and misappropriating the invested amount of the gullible investors to the tune of crores.
Earlier, four other accused Sarat Kumar Parida, Devabrat Harichandan, Chandan Kumar Mohalik and Prasant Kumar Mohanty have been arrested in this case, it said.
During investigation, the police found that the accused persons have duped 31 investors, pursuant to a criminal conspiracy, by collecting Rs 1.2 crore from them with the assurance of very high returns.
Further, the aforesaid company & its directors/promoters have failed to provide the assured service/returns for which the money was invested, the EWO said.