The Directorate of Enforcement (ED) conducted searches at various locations in Mumbai, Bengaluru, and Chennai on Wednesday in relation to a money laundering case involving M/s Vihaan Direct Selling India Private Limited, which is the master franchisee company of M/s Qnet Ltd in India. During the searches, the ED froze a total of 36 bank accounts belonging to various companies, individuals, and proprietorships connected to the case, with amounts involving more than Rs. 90 crore.
The ED initiated a money laundering investigation based on an FIR against M/s Qnet Ltd., Vijay Eswaran, M/s Vihaan Direct Selling (India) Pvt. Ltd., and other companies and individuals registered by the EOW, Mumbai.
During the investigation, it was revealed that M/s Vihaan Direct Selling India Pvt. Ltd, a master franchise of M/s Qnet in India, had used and floated various shell companies and dummy proprietorships to route funds received from a large number of innocent investors. M/s Vihaan Direct Selling India Pvt. Ltd had duped a large number of innocent investors in India by convincing them to invest their hard-earned money in a Ponzi scheme under the guise of a direct selling business.
Various investors were duped of their hard-earned money under the guise of huge profits without being informed about the nature of the business or the details of how their invested money would be used. According to the FIR registered by the Mumbai Police, the total estimated proceeds of crime were about Rs. 400 crore. However, during the course of the investigation, it was observed that more than Rs. 2000 crore had been routed through various shell companies by these entities.
The search operation was conducted at various locations in India, including five locations in Mumbai, two locations in Bengaluru, and two locations in Chennai. As a result of the search, various incriminating documents and digital devices were seized. Additionally, 36 bank accounts amounting to more than Rs.90 crore, relating to various companies, individuals, and proprietorships connected to the case were also frozen.
Further investigation in the matter is ongoing.