Mumbai: Cafe Coffee Day ordered to shut doors to representatives of fraud-accused firm QNet

As part of efforts to stop alleged illegal activities of Hong Kong-based multi-level marketing company QNet, accused of involvement in a Rs 425-crore fraud, Mumbai police has ordered popular coffee shop Cafe Coffee Day (CCD) to shut doors to representatives of the controversial firm.

Investigations by Mumbai Police Economic Offence Wing (EOW), probing the scheme, discovered that representatives and employees of the beleaguered company and the firms associated with it often frequent the city based outlets of CCD to lure prospective members.

Complying with the orders of EOW, the CCD authorities have pasted a notice, barring the entry of representatives, staff and employees of QNet and its associated firms.

The notices pasted at the entrance by the CCD outlets in the city reads, "As per instructions received from Economic Offence Wing- Crime branch, Mumbai and Additional Police Commission of EOW Mumbai, entry is prohibited for representatives, staff and employees of Vihaan Direct Selling (India) Pvt Ltd, QNet Limited (Hong Kong), Transview Enterprises India Pvt Ltd and Vanamala Hotels, Travels & Tourism Services Pvt Ltd."

The CCD notice further states, "NOTE: We are not associated with the above mentioned in anyway." Armed with court orders, Mumbai Police with the help of central cyber security sleuths had blocked online portals a few weeks ago to put an end to their web activities.

"However, it has come to our notice that the representatives have found alternative ways on the internet and are continuing their operations. We are leaving no stone unturned to impede their activities," said an officer.

"Using free Wifi facilities, the company's agents operate from outlets, besides meeting prospective members to discuss business," the officer added. Gurpreet Singh, the complainant of the fraud, has welcomed the police's move saying, "It is a well known fact that QNet's associates sit in CCD outlets scouting for their victims."

The EOW has so far arrested ten persons for allegedly duping investors by offering to sell products like magnetic disks, herbal products and holiday schemes through fraudulent practices.

Former billiard champion Michael Ferreira and Bollywood actor Boman Irani's son Danesh have also been under scanner of the EOW as they were also found to be allegedly associated with the firm, amassing huge money via this system, according to sources.

The QNET has also been accused of using the banned binary pyramid business model for their multi-level marketing schemes to entice investors. An FIR in the case was registered in August last year.

The accused have been charged with cheating and forgery under relevant sections of the Prize, Chits and Money Circulation Schemes (Banning) Act 1978. The EOW had issued look out notices against QNET founder Vijay Eswaran, Michael Ferreira and three business associates, sources added.

Ferreira turned up before the investigators, who recorded his statement a few weeks ago for his alleged role in the case.