- SD Pay digital wallet allegedly ran a Rs 1,211-crore investment fraud across India
- Fraud impacted over 6.52 lakh people in 36 states and union territories
- Police arrested 12 people, including masterminds Dhaval Patel and Narendra Solanki
A digital wallet, 'SD Pay', promising 9% monthly cashback, allegedly turned into a massive investment fraud. The fraud affected more than 6.52 lakh people across India.
Gujarat Police have busted an alleged Rs 1,211-crore scam linked to the SD Pay app, which reportedly attracted investors through a 15-level multi-level marketing (MLM) network.
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Amreli Police have reportedly arrested 12 people so far, while investigators are examining hundreds of complaints and financial transactions to trace the money.
A two-month investigation initially estimated the fraud at Rs 635 crore, involving around 3.15 lakh victims. However, investigators uncovered additional records after cracking the password of a system allegedly used by the accused.
The revised figures revealed that the app had affected over 6.52 lakh people across 36 states and Union Territories. SD Pay reportedly recorded nearly 15 lakh downloads.
How Did The SD Pay App Allegedly Work?
Police reportedly said that SD Pay was marketed as a digital wallet that offered users monthly cashback of 9% on deposited money. Its referral programme had 15 levels, rewarding existing members for bringing new investors into the network.
Investigators suspect that the platform used money from fresh participants to pay returns to earlier investors.
As new deposits slowed, the accused allegedly restricted withdrawals and routed funds through accounts linked to shell companies. Police believe the scheme began facing serious difficulties around March 2026.
The accused reportedly started offering company shares instead of returning deposits. They allegedly told investors that an upcoming initial public offering (IPO) would increase the value of their holdings.
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Who Were The Masterminds Behind SD Pay?
Police have identified Dhaval Patel and Narendra Solanki as alleged masterminds. Investigators said they shifted operations to Maharashtra under another name, 'Apna Pay', India Today reported.
Narendra Kangre, who allegedly took charge of the operation, remains absconding. Police have issued a lookout circular against him and placed him on a no-fly list.
Among those arrested are Patel, Solanki and Santosh Pathak. The investigation has also exposed the scale of the referral network through individual investor accounts.
A Vadodara-based teacher reportedly invested Rs 9.5 lakh after selling her one-bedroom flat in 2025. After receiving initial returns, she promoted the app among acquaintances. Her network eventually included around 800 people, while 31 people directly linked to her, including relatives and colleagues, invested around Rs 42 lakh.
Police have recorded statements from approximately 900 people and received over 800 complaints through the 1930 cybercrime helpline.
A special investigation team is examining the financial trail, shell companies, and other suspected associates as authorities attempt to recover the money.
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