QNet case: HC pulls up EOW for delay in filing chargesheet

The Bombay High Court today rapped Mumbai police's Economic Offences Wing (EOW) for delay in filing charge sheet in the alleged Rs 425 crore financial fraud involving multi-level marketing firm QNet.
A division bench of Justices N H Patil and V L Achliya was hearing a petition filed by Transview Enterprises India Pvt Ltd seeking defreezing of its bank account. The company claims to be merely a supply agent between Hong Kong based firm QNet and another company in India.
However, according to the investigating agency, the petitioner company is a subsidiary of QNet and hence its bank account was seized.

Appearing for the company, advocate Niteen Pradhan as interim relief sought permission to disburse Rs four crore from the bank account towards statutory dues like VAT, service tax, advance tax and customs duty.
When the court queried about the investigation, special public prosecutor Pradip Garat said the EOW had initiated probe into the case in August last year and has so far received 60 complaints although over a lakh have been conned and that investigation is still under progress with documentary evidence being collected.
"Why so much delay? When will you (EOW) file the charge sheet? What more evidence is required? You can file a charge sheet and then continue probe and file supplementary charge sheets.

"The sooner the charge sheet is filed the better. Such a delay will destroy the whole purpose of the investigation. Just because over a lakh persons have been duped the agency cannot go on investigating for ten years," Justice Patil said.

The court also rapped the investigating agency for not finding out if the petitioner company is operating only one bank account.
"Did you (EOW) find out if the company has any other accounts. Isn't it the agency's job to find out all this. All this the court has to ask?" Justice Achliya said.
The court after hearing both the sides refused to grant interim relief to the petitioner company to disburse the statutory dues and posted the matter for hearing on March 7.

The EOW has so far arrested nine team leaders of the QNet for allegedly duping investors by offering to sell products like magnetic disks, herbal products and holiday schemes through fraudulent practices.
Earlier, the Enforcement Directorate (ED) registered a money laundering case in connection with the alleged financial fraud involving QNet in which the name of former world billiards champion Michael Ferreira has cropped up.
Besides Ferreira, actor Boman Irani's son Danesh is also under the scanner in the case.