India’s RJ Tarun Ratnani from Mumbai was arrested by the city police in an alleged scam involving multi-level marketing company QNet, according to The Hindu.

Hong Kong based QNet and its Indian franchise are being probed by the Economic Offence Wing (EOW) for floating a binary scheme where existing members are paid commissions for getting new members.

Ratnani, a QNet representative, was allegedly organising promotional programmes for the marketing firm with the aim to lure customers.

However, the investors did not receive the benefits they were promised and filed a complaint.

While his lawyer opposed his arrest in court, the judge decided to grant the EOW more time for investigation and send Ratnani to police custody until November 10.

So far 10 people have been arrested in the scam alleged to be worth $69 million (Rs 4.25 billion).