Amreli Police in Gujarat have uncovered an alleged digital investment fraud linked to the SD Pay app, with investigators estimating that more than 6.52 lakh people across 36 states and Union Territories may have been affected. The suspected value of the operation has risen to ₹1,211 crore as police examined additional data during a two-month investigation.
The case centres on an application presented to users as a digital wallet. According to the police, people were promised 9% monthly cashback on money deposited in their wallets. The platform also operated a 15-level referral structure, under which existing participants were encouraged to bring in new members in exchange for financial incentives.
How the alleged scheme operated
Investigators suspect that money from new participants was used to pay returns to earlier users. When the flow of fresh deposits began to fall, withdrawals were allegedly blocked and funds were transferred to accounts associated with shell companies. The investigation initially focused on Gujarat, Rajasthan and Maharashtra before police identified activity in Karnataka, Bihar, Uttar Pradesh and other parts of the country.
The scale reported by the police increased sharply after investigators accessed data from a system allegedly used by the people behind the operation. The first estimate covered about 3.15 lakh victims and approximately ₹635 crore. Examination of the additional records more than doubled the estimated number of affected investors. The SD Pay app had reportedly been downloaded nearly 15 lakh times.
| Investigation detail | Figure reported by police |
|---|---|
| Alleged value of the fraud | ₹1,211 crore |
| People allegedly affected | More than 6.52 lakh |
| States and Union Territories involved | 36 |
| Reported app downloads | Nearly 15 lakh |
| People arrested | 12 |
Police investigation continues
Twelve people have been arrested so far. Investigators have recorded statements from around 900 individuals and received more than 800 complaints through the national cybercrime helpline, 1930. A Special Investigation Team has been formed to trace the financial transactions and identify other people involved in the alleged network.
Police have identified Dhaval Patel and Narendra Solanki as alleged masterminds. The investigation found that they had shifted operations to Maharashtra under another name, Apna Pay. The operation was reportedly handed over to Narendra Kangre, who has also been named as an accused and remains absconding. Police have issued a lookout circular against him and placed him on a no-fly list.
- SD Pay was reportedly promoted as a wallet offering 9% monthly cashback on deposited money.
- A 15-level referral system allegedly rewarded users for bringing in new participants.
- Police say complaints have been received through the 1930 cybercrime helpline and a Special Investigation Team is examining the transactions.
The figures and allegations are part of an ongoing police investigation and do not by themselves establish guilt. For users of digital payment and wallet applications, the case illustrates how a service presented as a payment product can also be used to solicit deposits and recruit participants through referral incentives. The investigation is now focused on the movement of funds, the wider network of people involved and the recovery of information from the systems linked to the alleged scheme.
