The Amreli Police in Gujarat have busted a Rs 1,211-crore digital investment scam involving the ‘SD Pay’ app, which reportedly duped more than 6.52 lakh people across 36 states and Union Territories through a multi-level marketing (MLM) network, officials said.Twelve people have been arrested so far in connection with the fraud, while investigators have recorded statements from around 900 individuals and received more than 800 complaints through the 1930 cybercrime helpline.A two-month-long investigation by the police revealed the scale of the alleged fraud, which was initially estimated at around Rs 635 crore, involving approximately 3.15 lakh victims.However, after investigators broke in to crucial data from a system used by the accused by cracking its password, the number of affected investors more than doubled to 6.52 lakh. The app reportedly recorded nearly 15 lakh downloads.

HOW THEY SCAMMED PEOPLEAccording to the police, SD Pay was presented as a digital wallet application, with users promised a monthly cashback of nine per cent on the money deposited in their wallets.The platform operated through a 15-level referral structure, encouraging existing investors to bring in new members in return for financial incentives. Investigators suspect that the scheme relied on fresh investments to pay returns to earlier participants.

Once the inflow of new money began declining, the accused allegedly blocked withdrawals and transferred funds into accounts linked to shell companies.While the initial investigation pointed to Gujarat, Rajasthan and Maharashtra, further examination revealed the network's presence in Karnataka, Bihar and Uttar Pradesh, among other states.A Special Investigation Team (SIT) was constituted to investigate the financial transactions and identify those involved.WHO ARE THE MASTERMINDS?Police also found that the masterminds, Dhaval Patel and Narendra Solanki, had shifted their operations to Maharashtra under a new name, 'Apna Pay'.The operation was reportedly handed over to Narendra Kangre, who has also been named as an accused but remains absconding. A lookout circular has been issued against him, and he has been placed on a no-fly list.Among those arrested are Dhaval Patel, Santosh Pathak and Narendra Solanki.

Solanki had reportedly previously worked with a UPI-based company.One of the most striking accounts to emerge from the investigation is that of 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 attractive returns and even shared her positive experience on social media, encouraging relatives and colleagues to join.Through her referral network, 31 people, including 11 family members and 20 colleagues, invested in the platform. She also told police that nearly 800 people eventually joined through her network.Her acquaintances collectively invested around Rs 42 lakh.

The group included her widowed sister, her brother and her mother, who is over 70-years-old.The teacher said she was initially reluctant to invest but was persuaded after representatives showed her an escrow wallet and documents.One individual also reportedly handed her a signed blank cheque, assuring her that she could recover her investment if she had any doubts.At one point, her digital wallet displayed a balance of Rs 50 lakh, while she claimed to have earned as much as Rs 25,000 a day through interest and referral cashback. However, after the app stopped functioning, she was unable to withdraw the money.Police said the scheme began facing difficulties around March 2026 as fresh investments declined, making it increasingly difficult to pay existing investors.The accused began offering company shares instead of returning their money, claiming that the company would soon launch an initial public offering (IPO) and that share prices would rise after its stock market listing.With the investigation expanding across states, police are now examining financial trails, shell company accounts and the roles of other suspected associates.Further arrests and revelations are likely as investigators attempt to establish the full extent of the alleged fraud and trace the money invested by thousands of victims.- Ends