A former Army personnel has been arrested in Odisha for allegedly masterminding a massive mobile app scam that defrauded hundreds of investors with false promises of daily returns. The scheme, run through an app called Huge App, highlights the growing menace of digital Ponzi operations targeting unsuspecting citizens across India.
A Ponzi Scheme Disguised as a Mobile App
The Cyber Crime and Economic Offence police on Monday arrested Partha Sarathi Das, a former Army man, accused of cheating investors across Odisha of more than ₹20 crore through a fraudulent platform named Huge App.
Das, originally from Sahada in Balasore’s Chandipur, had been operating from Rajendra Nagar in Cuttack, where he managed the firm’s office at New LIC Colony, Badambadi. According to investigators, Das lured people by offering daily returns of ₹200 on a minimum deposit of ₹5,500. Users were also asked to give five-star ratings to videos on the app, with additional incentives promised for recruiting new investors.
The scam appeared legitimate in its early stages: initial investors received returns, which helped spread credibility and attracted more participants. However, when payments were due on August 15, users were asked to deposit an additional ₹4,950 as annual maintenance charges (AMC). Within days, the office was shuttered and the app abruptly shut down, leaving hundreds of victims stranded.
The Complaint and Police Action
The case came to light after Mirza Adil Beg of Kadam Rasul lodged a formal complaint on August 28, alleging that he and 200 others had lost ₹33 lakh collectively. Police soon discovered that the fraud was far more widespread, spanning multiple districts and involving investments worth over ₹20 crore.
A special investigation team tracked Das to his hometown in Chandipur, where he was arrested. Authorities seized ₹68,000 in cash, three mobile phones, a Huge Marketing Ltd. authorization certificate, and froze ₹2.51 lakh in his bank account. He has since been brought back to Cuttack to face charges.
“Efforts are on to trace his associates and assess the full scale of the fraud. The EOW is coordinating with Cyber Crime police to recover evidence and safeguard the interests of the victims,” a senior police officer said.
Rising Threat of Digital Investment Scams
The Huge App fraud underscores the dangers posed by digital Ponzi schemes masquerading as legitimate investment platforms. Victims, many of whom were persuaded by friends or early investors, now face devastating losses.
Experts note that such scams thrive on social engineering and misplaced trust, with perpetrators exploiting the promise of easy returns. Authorities warn that stricter regulation and greater public awareness are critical to preventing similar frauds.
For now, Das’s arrest offers some relief to the victims, but police acknowledge the challenge of recovering the siphoned funds and identifying other members of the racket.
