MUMBAI: Three representatives of QNet , a marketing firm, were arrested from Thane on Sunday for allegedly organizing a meeting to motivate potential investors to invest in the firm that is already associated with a Rs 1,000-crore fraud case.

A raid was carried out at a hotel where at least 40 people had been invited by the three accused who were trying to convince the audience to invest in the marketing firm by promising them "lucrative" returns, said the police.

While the meeting was on, a team of the economic offences wing swooped down on the venue and nabbed the three organizers — Ghakopar resident Haresh Bhadra (37) and two Thane residents Suvija Pai (36) and Monish Bhandarkar (31).

Deputy commissioner of police Pravin Padwal said that they had received information about three people holding a investors' meet for QNet in Thane. A team comprising sub-inspector Deepak Mhaske and Ajay Kadam raided the place and seized a laptop and cellphones, said Padwal.

Another police officer said that during the preliminary inquiry, Pai admitted to having received more than Rs 10 lakh from QNet while Bhadra and Bhandarkar confessed to having got over Rs 20 lakh each.

Joint commissioner of police Dhananjay Kamalakar said that they have speeded up the probe and will nail all the accused in court.

QNet is being probed for allegedly duping lakhs of investors by selling plastic and glass products, claiming that these items have miraculous powers that can treat various ailments including cancer. The police have frozen several bank accounts of the company and its office-bearers, blocking a total of Rs 120 crore.

The police have said that at least 5 lakh investors have lost their investment in the QNet fraud investment. The company had lured these people each of who had invested amounts ranging between Rs 30,000 and Rs 7 lakh.

With the latest arrests, the number of people nabbed in the QNet fraud case has touched 22.