Hyderabad | In a major crackdown on an alleged multi-level marketing fraud, Hyderabad Police have arrested six individuals linked to the IGNITE scheme, which is suspected of duping investors across India of large sums of money under the guise of high-return business opportunities. The case has also exposed possible international connections, with investigators now probing links stretching beyond India.
According to police officials, the arrested accused have been identified as Oneal Gupta, Dinesh Kumar Saahil, Priyanshu Saxena, Praveen Kumar Dakalia, Paritosh Kumar Dakalia, and Riyaz. Each of them allegedly played different operational roles in promoting and expanding the IGNITE network across multiple states.
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Hyderabad Police Commissioner VC Sajjanar stated that the IGNITE platform was operating as part of a wider pattern of multi-level marketing (MLM) fraud, where victims were initially attracted through promises of unusually high financial returns. Once enrolled, participants were encouraged to purchase low-value products and further recruit new members to recover their investment and earn incentives.
Officials revealed that the company allegedly required each participant to invest around ₹60,000 and promote products such as magnetic pens, energy “harmonisation” devices, and electric toothbrushes. However, investigators noted that none of these products had approval from any recognised regulatory authority in India or abroad, raising serious concerns about their legitimacy and value.
Police said the structure of the scheme followed a classic pyramid model, where money from new recruits was used to pay earlier participants, creating an illusion of profitability. Victims were repeatedly told that recruiting at least two new members would unlock refunds or additional earnings, pushing them deeper into the network.
The investigation also revealed that IGNITE is allegedly linked to a broader chain of MLM operations that have operated under different names over the years, including GoldQuest, QuestNet, QNet/Vihaan, and now IGNITE. Authorities claim that the same core network has repeatedly resurfaced under new branding to evade enforcement actions.
Officials further stated that the headquarters of the entity is believed to be located in Hong Kong, and that key individuals involved in the operations, including founder Pathman Senathirajah and associate Adly Hassan, are currently based outside India. Police are now planning to initiate legal processes including Red Corner Notices to trace and bring them under investigation.
Hyderabad Police have registered multiple FIRs at Punjagutta, Kachiguda, and SR Nagar police stations before transferring the cases to the Central Crime Station for coordinated investigation. A specialised team from the detective department has been assigned to examine financial flows, recruitment patterns, and digital communications used in the scam.
Authorities also indicated that the investigation suggests a long-running pattern of deception spanning nearly two decades, with similar schemes allegedly causing losses worth hundreds of crores across multiple states. The current IGNITE operation, police said, is believed to be a continuation of the same fraudulent model adapted with new branding and digital tools.
Cybercrime and economic offence experts note that MLM-based frauds often exploit financial insecurity by combining product purchases with recruitment-based incentives, making them appear legitimate while functioning as unregulated Ponzi structures.
Investigators are now analysing transaction records, beneficiary accounts, and cross-border fund transfers to determine the full extent of financial diversion. Officials also suspect that a network of intermediaries helped circulate funds through layered accounts to obscure the money trail.
Police Commissioner VC Sajjanar warned citizens to remain cautious of investment schemes that promise guaranteed high returns or require mandatory recruitment of new members. He reiterated that genuine financial products are always regulated and do not depend on pyramid-style expansion models.
Authorities confirmed that efforts are underway to identify additional suspects and dismantle the wider network. The arrested individuals are currently being interrogated, and further arrests are expected as the probe expands into international jurisdictions.
The case has once again highlighted the growing challenge of sophisticated MLM frauds operating under corporate-style branding, raising concerns over digital awareness, regulatory gaps, and cross-border enforcement mechanisms in financial crime investigations.
