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QNet case: Hyderabad cops take custody of Ferreira, 3 others

Press Trust of India  |  Hyderabad 

Former world billiards champion Michael Ferreira and three others accused in a case of Rs 400-crore alleged involving the multi-level-marketing company QNet have been taken into custody by Police and brought here from

A Police team had last week submitted an application seeking their custody in connection with the case registered by them.


A then granted transit remand and the Police took them into custody.

"The four directors of the company, including Michael Ferreira, have been brought to from on warrant," a senior police official attached to Central Crime Station (CCS), a wing of Police, said today.

They have been brought here as part of further investigation and will be interrogated, he said.

The Police's Economic Offences Wing (EOW) had taken them into custody on September 30 this year in connection with the QNet case.

The EOW has so far arrested 19 persons in the case.

QNet and its franchisee firms allegedly sold products such as magnetic disks with 'healing' properties, herbal medicines and holiday schemes. The company is accused of using the banned 'binary pyramid' model in its marketing schemes, apart from duping the investors.

The FIR was registered in in August 2013 under the Prize, Chits and Money Circulation Schemes (Banning) Act, 1978 and Maharashtra Protection of Interest of Depositors Act.

Special public prosecutor Pradeep Gharat had earlier told the in that Ferreira held 80 per cent shares in a franchisee of Hong Kong-based QNet.

QNet ran a 'Ponzi scheme', seeking investments between Rs 30,000 to Rs 7.5 lakh, the prosecutor had said, adding the investors never got the high returns they were promised.

The money earned by QNet was "laundered" and diverted out of the country, Gharat had told the court, adding that Ferreira's interrogation was necessary to find its "destination".

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 19 2016. 11:48 IST
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