AHMEDABAD: In what is being described as one of Gujarat’s biggest cyber-fraud crackdowns, Amreli Police have busted a sprawling multi-crore investment scam allegedly run through mobile applications such as SD Pay and Apna Pay, with transactions and deposits worth more than Rs 635 crore detected during the investigation.
The alleged scam, which promised investors unusually high daily returns, cashback and quick profits, is suspected to have trapped lakhs of people across Gujarat. Police have arrested six accused, while an SIT led by IPS officer Jaiveer Gadhvi has been formed to trace the wider network and follow the money trail.
The case has also drawn attention because the main complainant is reportedly the wife of a police personnel. According to the investigation, the accused allegedly created seven bogus companies, including SD Hub, Shiv Dharti Communication and Upay Digi, to operate the suspected fraud network.
Police scrutiny has so far found transactions and deposits of more than Rs 635 crore across 15 different bank accounts linked to these companies.
Investigators found that the accused had developed the SD Pay application and uploaded it on the Play Store, where the app reportedly recorded more than 10 lakh downloads and users. Police said the arrested accused allegedly expanded the network through a referral-based system, connecting an estimated 1.5 lakh to 2.5 lakh people through references.
The app reportedly offered services such as bill payments and mobile recharges; however, investigators believe its referral mechanism was used to draw more people into the network by offering cashback bonuses and incentives at different levels.
The alleged fraud has spread its tentacles across Gujarat, with small investors believed to be among the biggest victims in major cities including Ahmedabad, Gandhinagar, Mehsana, and Surat.
The investigation has further revealed that 83 cyber-fraud complaints have been registered against bank accounts linked to these companies on the national cybercrime reporting platform from different parts of the country.
Police have obtained data of around 3.5 lakh people registered on the application, including their names and mobile numbers. Investigators are carrying out geographical analysis of the data to identify and locate possible victims across Gujarat.
According to the preliminary police assessment, even if just 20% to 50% of the registered users invested a minimum of Rs 1,000 each, the total investment exposure could run into a massive amount. So far, the district police have identified an estimated Rs 65 crore in investments during the preliminary analysis.
Police said several accounts linked to the arrested accused were opened only within the last one to one-and-a-half years. Despite the accused allegedly having no other known legitimate business or occupation, transactions worth approximately Rs 635 crore were recorded in these accounts within a relatively short period. Investigators are now examining the source and legality of the money.
Authorities are also verifying whether the accused complied with income tax, GST and other applicable tax requirements. Police sources indicated that the accused could face further legal trouble if they fail to establish a legitimate source for the huge volume of transactions.
Amreli SP Sanjay Kharat said the investigation had exposed a statewide cyber-fraud network built around promises of fast money and extraordinary returns. “The threads of this cyber scam have spread across Gujarat. People were lured with promises of doubling their money quickly and receiving extraordinary daily cashback on investments. The accused created the SD Pay application, which had more than 10 lakh downloads and users. Preliminary investigation shows that around 1.5 lakh to 2.5 lakh people were connected to the network through referrals,” Kharat said.
He further said the accused had allegedly floated seven bogus companies and that transactions and deposits worth around Rs 634 crore had been detected across 15 bank accounts linked to them.
“As many as 83 cyber-fraud complaints have also been registered against these accounts from across the country. The investigation is continuing to identify the victims, trace the money trail and determine the full scale of the racket,” the Amreli SP added.
Police said people were allegedly drawn into the scheme through seminars and promotional campaigns promising massive investment returns. Given the online nature and widespread downloads of the application, investigators fear that the number of victims could be significantly higher than currently known.
Amreli Police have already sent reports to the concerned companies and platforms seeking the immediate closure of the online applications and related transaction channels allegedly used in the fraud. The district police have now appealed to all citizens who invested through Up Pay, HDP or any similar scheme or platform linked to the suspected network to come forward and submit details.
Police have urged investors, agents and other possible victims to immediately contact Amreli district police so that their complaints can be recorded, the money trail can be traced, and further legal action can be taken against those involved.