The Enforcement Directorate (ED) has initiated a money laundering investigation in connection with the alleged Rs 425 crore fraud involving the multi-level marketing firm QNet. The investigation has come under scrutiny due to the involvement of former world billiards champion Michael Ferreira and actor Boman Irani’s son, Danesh Irani, both of whom are being investigated for their roles in the scam.
The case has been registered by the ED’s Mumbai office under the Prevention of Money Laundering Act (PMLA) after taking note of the FIR filed by the Economic Offences Wing (EOW) of the Mumbai Police. Sources indicate that the investigation will focus on the cross-border financial transactions involved, prompting the ED to explore the international scope of the alleged money laundering.
Ferreira and Danesh Irani had already been questioned by the EOW in connection with the fraud. The ED is expected to issue summons to the accused in the near future to further probe their involvement.
QNet and its associated entities are accused of running fraudulent operations by selling products like magnetic disks with supposed healing properties, herbal products, and holiday schemes. The company allegedly utilized a banned binary pyramid scheme to entice investors, which is illegal in India. Recently, investigating agencies across the country have been monitoring such cases, leading to the arrest of nine team leaders involved in the fraud.
The accused face charges under the Prize, Chits, and Money Circulation Schemes (Banning) Act, 1978. The ED’s focus now shifts to investigating potential money laundering activities linked to the scam. Both Ferreira and Danesh Irani, along with QNet, have denied any wrongdoing related to the alleged fraud.