- Direct selling misrepresentation ^Open

Naveen filed this complaint against QNET Vihaan India Pvt Ltd on Apr 02, 2026

My name is Potnuru Naveen. I am submitting this statement to explain the complete sequence of events regarding my involvement with QNet and the financial hardship that followed.
In early ****, I was approached by Kalyan Kumar karakavalasa referrer who introduced me to a business opportunity. During the initial discussions, the name of the company was not revealed to me. The referrer explained the opportunity as a legitimate business model where income could be generated by promoting products and expanding a network.
The referrer explained the concept using something called MAD Cost Reduction. According to him, the company saves money on marketing, advertising and distribution and shares that benefit with independent representatives who promote the products.
Before agreeing to join, I clearly asked the referrer multiple times whether the opportunity was related to network marketing. I clearly told him that if it was network marketing I would drop the idea immediately and not join. However, the referrer repeatedly assured me that it was not a typical network marketing system and described it as a product based business opportunity.
During these discussions, the referrer also told me that the products associated with the business would be complimentary gifts provided as part of the business entry. At no point was I told that I would actually be purchasing those products with my own money.
Since I did not have sufficient funds to join the business, the referrer arranged a loan agent to help me obtain a personal loan. The referrer also collected my documents and sent them to the loan agent for processing the loan.
Based on this arrangement, a personal loan was processed through HDFC Bank. As part of the loan approval process, the bank conducted a field verification. During this process, a bank representative visited the residence of the referrer and verified his address and details before the loan was approved.
After the verification process, the loan from HDFC Bank was disbursed on ** March **** for approximately Rs ****** with a tenure of ** months and a monthly EMI of around Rs *****.
After the loan amount was credited to my bank account, I transferred the funds as instructed by the referrer for the purpose of joining the business.
On * April ****, I was officially registered and provided with an Independent Representative ID under QNet.
Only after the entire payment was completed and my IR ID was created did I come to know that the money had actually been used to purchase products under my name. This information had never been explained earlier. I had been told that the products were complimentary gifts and not purchases made with my money.
After joining and understanding the real structure of the system, I realized that the business operates as a network marketing model where income depends heavily on recruiting additional members into the network. This was not clearly explained to me earlier despite my repeated questions before joining.
I joined on * April **** and within a few days, on ** April ****, I sent messages to my referrer through WhatsApp requesting cancellation and refund. However, my request was not properly addressed and I was told that there was no refund available.
The products purchased under my IR ID were delivered to me and they are still in my possession. Importantly, these products remain completely unopened and unused and I am willing to return them if the refund process is initiated.
Despite financial difficulties, I have continued to make payments towards the loan including payments in December ****, January **** and a recent partial payment.
Recently I received communication demanding that I pay the entire outstanding loan amount of approximately Rs ****** within seven days, which is extremely difficult for me to arrange in my current financial situation.
Due to the distress caused by this situation, I have raised complaints with National Consumer Helpline, Reserve Bank of India and through the Prime Minister's grievance portal requesting intervention and review of the matter.

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