Mumbai: An organization of fraud victims alleged here on Wednesday that QNet, a marketing firm accused of committing a multi-crore rupee fraud, was used for raising funds for controversial Islamic preacher Zakir Naik.
The company denied the allegation. Naik, wanted by Indian investigation agencies in terror-related cases, is currently living in Malaysia. The Financial Frauds Victims Welfare Association alleged in a statement here that QNet was used as a "fund- raising channel" for Naik.
The National Investigation Agency (NIA) is looking into this aspect after Gurpreet Anand, a whistle-blower, filed a complaint, it said. Some people associated with QNet helped and protected Naik when he fled to Malaysia, it said.
In January, Telangana police had said that nation-wide probe had been launched to nab the main perpetrators behind the fraud allegedly committed by QNet.
The company is accused of using marketing schemes like direct-sales marketing which are prohibited in India under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
QNet has also been accused of using the banned binary pyramid business model for its multi-level marketing (MlM) schemes to entice investors. QNet, in a late-night statement, denied the allegations made by the association.
Rishi Chandiok, Regional Director (South Asia), QNet, said that QNet did not promote a Ponzi scheme, and cited a Karnataka high court order which he said absolved the company from this charge.
Further, "QNet or any of its constituents have nothing to do with Zakir Naik....There is no relation or connection whatsoever," he said, calling the allegation "vicious propaganda".
