QNet, the consumer-facing brand of the Hong Kong-headquartered QI Group, operates a multi-level direct selling model that has become the subject of extensive regulatory, judicial, and media scrutiny in India. Over more than a decade, Indian authorities and courts have repeatedly characterised the India operation as a money-circulation or chain marketing scheme rather than a legitimate direct-selling business.

A reportedly secret Serious Fraud Investigation Office (SFIO) dossier classifies MLM and Ponzi-style structures — expressly referencing QNet — as a threat to national security, reflecting concerns about financial harm to large numbers of middle-class participants. The Bombay High Court has recorded findings that the scheme operates as a chain in which a person is first deceived and then trained to deceive others for financial gain.

Law enforcement actions have intensified in recent years, including arrests of more than 30 individuals by Hyderabad Police in a QNet-linked money circulation fraud, convictions of QNet-linked directors secured by the Andhra Pradesh CID, and ongoing Enforcement Directorate scrutiny. The aggregate pattern across jurisdictions, victim complaints, and judicial pronouncements supports a CRITICAL risk classification for compliance, reputational, and counterparty purposes.