QNet scam: No bail for Ferreira

A special court on Friday turned down the bail plea of former billiards champion Michael Ferreira and three other people accused in the QNET scam.

A special court on Friday turned down the bail plea of former billiards champion Michael Ferreira and three other people accused in the QNET scam.

The Special Maharashtra Protection of Interest of Depositors Act (MPID) court rejected the bail plea after the special public prosecutor, Pradeep Gharath, argued the illegal activities the accused were involved in continued even as the probe was on.

Ferreira and three others — Malcolm Desai, Srinivas Rao and Magaral Balaji — all directors of Vihaan Direct Selling (India) Pvt Ltd were arrested by the Economic Offences Wing (EOW) on September 30 after they surrendered before a special court. Ferreira and his associates were running and operating an illegal money circulation scheme under the name of QNET. Investigations showed nearly five lakh investors from across the country were duped in the scam.

Whiel the four were remanded in judicial custody, their lawyers had on Thursday moved for bail saying they had no role to play in the case. But Gharath contended the accused submitted false bank statements and their illegal activities continued even as the agency was investigating the case.

QNET has been accused of using the banned binary pyramid business model for their multi-level marketing (MLM) schemes to lure investors.