Charges fly as QNet whistleblower ramps up allegations

Gurupreet Singh Anand at a press conference at Mumbai's Press Club. Pic/Atul Kamble

QNet's sub-franchisee Vihaan India Pvt Ltd is set to shut down operations. Gurupreet Singh Anand, whistleblower in the QNet scam, said at a press conference on Wednesday that the company is in the process of winding up. "QNet victims will get back their money," he said, while also pointing to the three QNet-related suicides. Citing communication (dated August 8) by the Ministry of Corporate Affairs, signed by JoseKutty V E (Joint Director), he said that a petition has been filed by the Registrar Of Companies Bangalore for winding up the company under a section of the Companies Act 2013 before the National Company Law Tribunal.

The conference saw Anand holding up a 'bio disk' which he claimed QNet sells touting some health benefits. "This disc, costing Rs 30,000, has no healing properties. Similarly, this 'chi' pendant, that costs Rs 25,000, that they sell is nothing but glass, it has no special properties," he said. The Financial Frauds Victims Welfare Association said that more than Rs 20,000 crore has been 'laundered' out of India by QNet. QNet, however, slammed Anand, saying that "distributors are not investors."

"We do not offer any passive returns or financial products as alleged. An unqualified, alleged sum of R20,000 crore as a scam figure was quoted by Gurupreet Singh Anand. This has no basis in reality." QNet said that they have been subjected to "ill-guided prosecutions by malicious extortion-minded individuals." Anand claimed that former Finance Minister P Chidambaram, "lobbied heavily for these fraud Ponzi companies." QNet responded saying this was "vicious propaganda."

"We have nothing to do with Chidambaram and he seems to be making these allegations after extortion attempts have failed," the QNet representative said, adding that the petition seeking winding of Vihaan Direct Selling (India) Private Limited is a misdirected action. "The violations for which such a major action is sought, are minor in nature, and we intend to protect our interest in the court of law," it said. Anand shot back saying, "If I am an extortionist, why has the company not filed an extortion complaint against me? If my allegations are baseless and not supported by proof, where is their proof about my so-called failed extortion?"

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