The Amreli Police in Gujarat have uncovered a significant digital investment scam linked to the ‘SD Pay’ app, which allegedly defrauded over 6.52 lakh investors across 36 states and Union Territories. The estimated value of the scam is Rs 1,211 crore. Authorities have arrested twelve individuals in connection with the case, while around 900 statements have been recorded and over 800 complaints filed through the 1930 cybercrime helpline. The investigation, which spanned two months, initially suggested a fraud of approximately Rs 635 crore involving around 3.15 lakh victims. However, further analysis revealed a far larger number of affected investors.

Investigators managed to access crucial data by cracking a password used by the accused, leading to a significant increase in the number of victims. The app reportedly garnered nearly 15 lakh downloads, raising concerns about its widespread reach and the implications for those involved.

Mechanism of the Scam

According to police reports, the SD Pay app was marketed as a digital wallet that promised users a monthly cashback of nine per cent on their deposits. The platform operated on a multi-level marketing (MLM) model, featuring a 15-level referral structure that incentivised current investors to recruit new members. Investigators suspect that the scheme relied on incoming investments to pay returns to earlier participants. As new investments began to dwindle, the accused allegedly restricted withdrawals and redirected funds to accounts associated with shell companies.

The initial investigation indicated that the scheme was primarily active in Gujarat, Rajasthan, and Maharashtra. However, further inquiries uncovered its operation in states such as Karnataka, Bihar, and Uttar Pradesh. A Special Investigation Team (SIT) has been established to scrutinise financial transactions and identify additional individuals involved in the scam.

Police investigations have identified key figures behind the operation, including Dhaval Patel and Narendra Solanki, who reportedly relocated their activities to Maharashtra under a new alias, ‘Apna Pay’. The operation has been handed over to Narendra Kangre, who is also implicated but remains at large. A lookout circular has been issued for him, and he has been placed on a no-fly list.

Victims Share Their Experiences

Among the victims is a woman teacher from Vadodara, who invested Rs 9.5 lakh in SD Pay in 2025 after selling her one-bedroom flat. Initially, she received substantial returns and even promoted the app on social media, encouraging friends and family to invest. Through her referral network, 31 individuals, including 11 family members and 20 colleagues, also invested in the platform, collectively contributing around Rs 42 lakh.

The teacher recounted how she was initially hesitant to invest but was convinced by representatives who presented her with an escrow wallet and documentation. One individual even provided her with a signed blank cheque, assuring her that she could recover her funds if needed. At one point, her digital wallet showed a balance of Rs 50 lakh, and she claimed to earn up to Rs 25,000 daily through interest and referral cashback. However, when the app ceased functioning, she was unable to withdraw her money.

According to police, the scheme began to falter around March 2026 as new investments dwindled, complicating the process of paying existing investors. The accused reportedly began offering company shares instead of cash, claiming that an initial public offering (IPO) was imminent and that share prices would rise post-listing. As the investigation broadens across multiple states, police are tracing financial trails, shell company accounts, and the roles of additional suspected associates, anticipating further arrests and disclosures in the case.

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