Gujarat police bust Rs 1,211 crore SD Pay app investment scam
The Amreli Police investigation revealed that more than 6.52 lakh investors across 36 states and Union Territories were allegedly duped.
The Amreli Police in Gujarat have uncovered a Rs 1,211-crore digital investment fraud involving the SD Pay application, according to India Today. The scam reportedly affected 6.52 lakh people across 36 states and Union Territories through a multi-level marketing network.
Investigators found that the app, which had nearly 15 lakh downloads, promised users a monthly cashback of nine per cent on wallet deposits. The platform used a 15-level referral system to encourage existing users to recruit new members for financial incentives.
Police suspect the operation used funds from new investors to pay returns to earlier participants. When new money inflows decreased, the accused allegedly stopped withdrawals and moved funds into accounts tied to shell companies.
A Special Investigation Team (SIT) has been formed to track financial transactions. So far, 12 people have been arrested, including Dhaval Patel, Santosh Pathak, and Narendra Solanki. Authorities have also issued a lookout circular and placed Narendra Kangre on a no-fly list.
The investigation, which lasted two months, initially estimated the fraud at Rs 635 crore with 3.15 lakh victims. However, after police accessed data from a system used by the accused, the number of affected investors more than doubled.