Gujarat Cyber Crime Police in Amreli have arrested six people in connection with alleged large scale investment fraud running through mobile applications and digital platforms. They traced suspicious financial transactions of around ₹634 crore.
The alleged scheme was promoted through SD Pay and Apna Pay applications, operators promised investors handsome returns daily and more earnings through multi-level referral programme.
The operation may have affected between 1.5 lakh and 2.5 lakh people across India, investigators said. The case has led to a wider probe into multiple companies corporate bank accounts personal accounts and other individuals who might be linked with the alleged network.
The investigation reportedly began after authorities found financial transactions related to the investment platforms. Police say the accused lured participants by offering fixed daily returns (based on the amount deposited). Guaranteed-return schemes are a big red flag for potential investors (particularly when returns are unusually high and recruitment is involved).
Tiered Daily Returns Allegedly Offered to Investors
Investigators said that the alleged scheme used different investment slabs to make people deposit increasingly large sums of money. People who deposited between ₹1,000 and ₹25,000 were allegedly promised daily returns of 0.15%. Deposits above ₹25,000 and up to ₹1 lakh were allegedly associated with a promised daily return of 0.20%.
For investments of ₹1 lakh to ₹5 lakh the alleged return increased to 0.25% per day. For those depositing more than ₹5 lakh they were allegedly promised 0.30% daily. The tiered structure was said to be used “to encourage participants to put more money on platforms”.
Police also say the operators used a multi-level referral structure to grow their network. Commissions ranged from 3% to 30% (as many as 15 levels) and the referral structure allegedly encouraged existing users to recruit new ones so that platforms could quickly scale up.
The SD Pay application had passed one million downloads on Google Play Store according to investigators. The large number of downloads (along with the alleged referral incentives) is part of the investigation into how big the operation was.
₹634 Crore Traced Across Corporate Accounts
One of the most important aspects of the investigation is financial trail. Police reportedly found that around ₹634 crore had been deposited into 15 corporate bank accounts of companies allegedly involved in the operation.
Companies being investigated are S.D Hub (OPC) Private Limited, Shiv Dharti Communication and Upay Digi Payment India. Investigators are looking at what role each of these companies played in collecting funds received from participants, transferring money and possibly distributing it.
Police have also found between 30 and 35 personal bank accounts of people allegedly linked to the network. Financial investigators are looking at those accounts to see if money is flowing from corporate to personal accounts.
Investigators will look to find out who was the original source of the funds, trace subsequent transfers and where the money ended up. Authorities are also investigating whether other companies or accounts were used to move funds around and make the trail harder to follow.
Six People Arrested
Six suspects have been arrested by the SIT probing the case. They are Suryasinh Rathod (24) of Mansa in Gandhinagar; Ashish Gedia (38) and Bhavesh Chauhan (41) both from Savarkundla but living in Surat; Nishi Prasad (47) a Mehsana resident originally from Bihar; Sohil Makwana (26) from Mehsana; Niravkumar Patel (32) from Balol in Mehsana.
A case has been registered at Amreli Cyber Crime Police Station under provisions of Bharatiya Nyaya Sanhita, Banning of Unregulated Deposit Schemes Act, Gujarat Protection of Interest of Depositors Act and Information Technology Act.
The charges reflect the seriousness of the allegations and the scale of the suspected operation; but the accused are still entitled to due legal process and the allegations will ultimately have to be established through investigation and judicial proceedings.
83 Cyber Fraud Complaints Reportedly Linked
The fraud appears to have a wide geographical spread. Checking the National Cyber Crime Reporting Portal, investigators reportedly found 83 cyber fraud complaints registered from different parts of the country against 12 bank accounts allegedly involved in the operation.
That led authorities to expand the search beyond Amreli and Gujarat. Police are trying to find victims in other states, figure out how the alleged network operated in different locations and whether there were other suspects involved.
Investigators are also looking into the relationship between SD Pay and Apna Pay apps and companies and individuals being probed. Authorities will be expected to review digital records, bank transactions, company documents and communications as they try to piece together what was going on.
Probe Into Wider Network Continues
The ₹634 crore figure is the suspicious transactions that investigators have traced so far but does not necessarily represent how much individual investors lost. Forensic examination of bank accounts and financial records will be important to know how much was involved, how many people were affected and how funds moved through the network.
The case illustrates how risks are growing with online investment schemes advertised via mobile apps and social media. Promises of fixed or guaranteed returns (especially when accompanied by incentives for recruiting new participants) should be treated with caution.
Generally investors should check whether an investment platform or financial entity is authorised by the relevant regulator before transferring money.
Amreli Cyber Crime Police are still investigating so authorities will trace more accounts, find accomplices and see whether more companies were used in the alleged scam. The nationwide complaints connected to the bank accounts could also help investigators find more victims and establish the full extent of the alleged fraud.
Six people have been arrested so far and financial transactions worth ₹634 crore are being probed in the SD Pay case a major cyber-investment fraud investigation in Gujarat. The next phase of the probe will be to trace the money trail, find more suspects and who is responsible for what.
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