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Gujarat Police Uncover Rs 1,200 Crore Scam Involving SD Pay App
Sentiment: NegativeHigh Priority
What Happened?
The Amreli Police in Gujarat have arrested 12 individuals linked to a Rs 1,211-crore scam involving the SD Pay app, which defrauded over 6.5 lakh investors across India. The investigation revealed a multi-level marketing scheme that promised high returns.
Key points
- The scam involved over 6.52 lakh victims across 36 states and Union Territories.
- The initial estimate of the fraud was Rs 635 crore, later revised to Rs 1,211 crore.
- The SD Pay app was marketed as a digital wallet with a promised monthly cashback of 9%.
- The scheme operated on a 15-level referral structure, incentivizing existing users to recruit new members.
- Investigators suspect the scheme relied on new investments to pay returns to earlier participants.
- A Special Investigation Team (SIT) has been formed to investigate financial transactions.
Key insights
- The scale of the scam indicates a significant vulnerability in digital investment schemes.
- Victims included individuals from various backgrounds, emphasizing the widespread impact of such frauds.
- The investigation may lead to further arrests and uncover additional fraudulent networks.
Why it matters
This scam highlights the risks associated with digital investment platforms and the need for regulatory oversight.
Tags
Entities
Gujarat· StateAmreli Police· OrganizationSD Pay· ProductDhaval Patel· PersonNarendra Solanki· PersonNarendra Kangre· Person
Source
India Today
