Follow us on Google News
Ahmedabad: A digital wallet application introduced ostensibly to facilitate routine utility bill payments and mobile recharges allegedly transformed into an extensive multi-level marketing scam, entrapping depositors across multiple Indian states. The application, operating under the names SD Pay and Apna Pay, was launched in 2024 by Gujarat-based startup promoter Dhaval Patel and subsequently drew approximately 15 lakh registered users. Banking records scrutinised by law enforcement agencies reveal that 6,52,831 accounts funnelled nearly ₹1,211 crore into the platform. Police have registered 18 first information reports across several jurisdictions and arrested 12 individuals, including prime accused Dhaval Patel and Hiren Shah, while two key figures, Narendrasinh Jhala and Mukesh Lodhi, remain absconding. Despite the vast sums routed through formal banking channels, investigating agencies have so far managed to seize assets valued at merely ₹1.86 crore.
Lucrative Daily Returns and Deep Referral Chains
The platform marketed itself through promises of fixed daily interest payouts ranging between 0.15 and 0.30 per cent, calculated on the principal sums deposited by participants. To accelerate customer acquisition, the operators established an elaborate referral commission structure that paid up to 30 per cent returns at the initial level and maintained a three per cent commission up to the 15th referral tier. Police investigators suspect that the underlying enterprise produced no tangible goods, commercial sales, or genuine services, functioning instead by recycling capital from incoming depositors to settle the daily payouts of earlier subscribers.
The compounding referral structure blurred the line between ordinary victims and network promoters as depositors brought in personal networks to maximise their earnings. In Vadodara, a 48-year-old schoolteacher deposited ₹9.5 lakh derived from the sale of her apartment, which briefly showed an inflated wallet balance of ₹50 lakh and daily yields of ₹25,000 before the application ceased operations in June 2026. Her endorsements prompted 31 relatives and colleagues to invest ₹42 lakh, eventually drawing in approximately 800 additional participants. Similar distress occurred in Surendranagar, where an investor secured ₹60 lakh through personal and gold loans to invest in the platform, whereas a Surat user reportedly built a network of 1.6 lakh individuals.
Cash Shortages Met With Unlisted Share Allocations
Liquidity problems began surfacing in March 2026 as scheduled cash disbursements to depositors steadily dried up. Rather than processing bank transfers, the management began allocating company shares at a notional face value of ₹20 each, telling investors that a forthcoming initial public offering would raise share values to ₹100. Depositors holding substantial balances were reportedly pressured into accepting these share receipts in lieu of monetary refunds, a measure investigators view as a delaying tactic designed to hold off institutional scrutiny.
The entire enterprise began to unravel following an inquiry by the Amreli cybercrime police. An initial complaint lodged in June 2026 by a computer operator claiming a loss of ₹2 lakh was withdrawn after he received a refund. However, investigators pursued the financial paper trail after identifying discrepancies between cash deposits and the accounts funding refunds, tracing the funds directly to a Yes Bank corporate account operated by Shiv Dharti Communication Private Limited.
Nationwide Network Traced Across Hundreds of Bank Accounts
The Amreli cybercrime police registered a formal case on September 2, 2026, invoking charges of criminal conspiracy and cheating, alongside relevant sections of the Information Technology Act, the Banning of Unregulated Deposit Schemes Act, and the Gujarat Protection of Interest of Depositors Act. Official records show that by October 31, 876 victims had formally reported cumulative losses of ₹37.42 crore, while the National Cyber Crime Reporting Portal documented 831 complaints against corporate accounts affiliated with six connected enterprises.
Investigators have identified 38 bank accounts maintained by these six corporate entities and 72 additional personal accounts managed by 16 associated directors, alongside 95 key field agents operating in Gujarat, Rajasthan, Maharashtra, Delhi, Madhya Pradesh, and Chandigarh. In addition to 13 FIRs filed in Gujarat, authorities in Maharashtra, Rajasthan, Tamil Nadu, and Dadra and Nagar Haveli have initiated parallel proceedings. Police note that the ₹1,211-crore figure accounts only for documented banking transactions, as considerable amounts collected in unrecorded cash by field agents remain under assessment. Authorities are currently locating immovable assets owned by the accused to pursue formal court attachment proceedings to recover funds for victims.
