QNET scam: Michael Ferreira sent to judicial custody, Hyderabad police to take his custody
Investigators said Ferreira did not cooperate much during the interrogation as he was accompanied by his legal advisorsmumbai Updated: Oct 14, 2016 01:32 IST
Former billiards champion and arrested accused in the multicrore QNet fraud case, Michael Ferreira, along with three other accused was sent to judicial custody on Thursday after he was produced in a court by the Economic Offences Wing (EOW) officials. Meanwhile, the Hyderabad police submitted a production warrant before the court seeking Ferreira’s custody for investigating a case registered with them.
The court has reserved decision on Ferreira’s bail plea on Friday and is also likely to issue a transit warrant against him allowing Hyderabad police to take his custody.
The investigators also added that the former billiards champion did not cooperate during the questioning and he would be accompanied by his legal aides. Speaking on his foreign trips to Dubai and Malaysia, he told the EOW officials that he had visited there to attend QNet seminars. The officials said that Fereira claimed he had been there to mark his presence owing to his famous background.
He however allegedly also gave speeches and the officials said that they faced hindrances to ascertain Ferreira’s exact role owing to his non cooperative behavior during the custodial interrogation. The EOW also put up status of investigation before the court on Thursday.
“We tried to seek clarity on several aspects from him, however the presence of the legal counsel did not help us much,” said an EOW officer.
Ferreira and another accused Malcom Desai surrendered before a court in connection with the QNET cheating case on October 30. The court took them into judicial custody and asked the EOW to argue if they want their police custody.
Ferreira and his other associates were directors of Vihaan Direct Selling India (Pvt) Ltd, which was running and operating the illegal money circulation scheme under the name and style of QNET -previously known as Questnet in India. Nearly 5 lakh investors from across the country were allegedly cheated in this scam. QNET has been accused of using the banned binary pyramid business model for their multi-level marketing (MLM) schemes to lure investors.
Qnet Case: A Honk Kong based company had started its business in Indian with its headquarters in Bangalore. It operated in India under the ‘Vihaan Direct marketing selling company’ and had nearly 90,000 members in the country. The company sold products like magnetic disks, herbal products and holiday schemes. The company used the banned binary pyramid business model for their multi-level marketing (MLM) scheme. An FIR in connection with the alleged Qnet scam was registered in April 2013 after Gurupreet Singh Anand, a member who did not get the promised returns, lodged complaint. The case was registered under ‘The Prize Chits and Money Circulation Schemes (Banning) Act, 1978’ has been registered. Also EOW invoked the stringent Maharashtra Protection of Interest of Depositors (MPID) in the case.