Gujarat Police Bust Rs 1,200-Crore SD Pay Investment Fraud Scheme

Gujarat Police have cracked down on a large-scale investment fraud involving the SD Pay application, which operated as a multi-level marketing scheme targeting investors nationwide. The operation, which promised participants 9% monthly cashback on investments, has been identified as one of the country's major financial frauds in recent times.

The investigation revealed that the scheme affected more than 6.52 lakh people spread across 36 states and union territories. Preliminary findings indicate that investors were collectively duped of approximately Rs 1,211 crore through the fraudulent platform, making it a significant case of financial misconduct.

The SD Pay app lured investors with promises of extraordinarily high returns, a common tactic employed by illegal multi-level marketing operations. Participants were encouraged to recruit additional members into the scheme, creating a pyramid-like structure designed to generate unsustainable profits for those at the top while leaving most participants with significant losses.

The arrest and investigation represent authorities' ongoing efforts to clamp down on investment fraud schemes that exploit ordinary citizens seeking financial gains. Authorities have urged investors to exercise caution when evaluating investment opportunities, particularly those offering returns significantly higher than prevailing market rates, and to report suspected fraudulent schemes to law enforcement immediately.