It began as a payments app and, according to police, ended as one of the largest alleged investment frauds uncovered in Gujarat in recent years. Investigators in Amreli say that a digital wallet called SD Pay, later rebranded as Apna Pay, drew in investors from across the country with the promise of steady monthly returns, and then relied on those same investors to bring in friends and family through a referral network that stretched 15 levels deep. When withdrawals froze, the money was gone, police allege, into a web of accounts and companies they are still untangling.

These are allegations. The accused have been arrested but not convicted, and the investigation is continuing.

What Is the SD Pay Scam?

According to police, SD Pay and its later version, Apna Pay, were launched in 2024 by Gujarat-based startup promoter Dhaval Patel. The app was presented as a digital wallet and utility payment platform. Investigators say it later pivoted to an investment model in which users deposited money into their wallets in return for guaranteed payouts.

Police say the platform attracted about 15 lakh registered users. Banking records show that 6,52,831 bank accounts together put in about ₹1,211 crore through banking channels. Investigators suspect the real figure is higher, because substantial sums are believed to have been collected in cash by field agents and have yet to be accounted for.

How Did the Scheme Allegedly Work?

The promise. Users were allegedly promised a fixed return, described as 9 per cent monthly cashback on wallet balances, or daily interest of 0.15 to 0.30 per cent depending on the amount invested. Such guaranteed, high returns are a classic warning sign of a Ponzi-style scheme, in which payouts to earlier investors are funded by money from newer ones.

The referral engine. Police say the accused introduced referral commissions after the initial offers failed to draw big deposits. The structure allegedly paid commissions of up to 30 per cent at the first level, tapering to 3 per cent at levels 10 to 15. This turned every investor into a potential recruiter, and it gave people a reason to bring in relatives and friends. That is how, in the words of one investigator’s account, investors became recruiters.

The collapse. Eventually, the app stopped working, and withdrawals were frozen. Police allege that funds were then diverted into shell company accounts. The scheme operated under the Apna Pay name after a move of operations to Maharashtra, according to one account.

The legal gap. Amreli’s Superintendent of Police, Sanjay Kharat, has said the accused had a registered company but no banking licence. They later launched an IMPS payment application with the help of a Delhi-based company, a link that police are also examining.

How Did Police Uncover It?

The case came to light in stages. An initial complaint in June 2026, from a computer operator who said he had lost ₹2 lakh, was withdrawn after he received a refund. On September 2, the Amreli cybercrime police registered a formal case after a complaint from a policeman’s wife, who alleged that she had lost ₹10 lakh.

The case invokes charges of cheating and criminal conspiracy, along with provisions of the Information Technology Act, the Banning of Unregulated Deposit Schemes Act and the Gujarat Protection of Interest of Depositors Act. Investigators then analysed data on about 15 lakh users and traced the bank accounts that fed the platform. An earlier stage of the inquiry had identified transactions of about ₹634 crore through 15 bank accounts and accounts of various companies.

Who Has Been Arrested?

So far, 12 people have been arrested, including promoters and company directors. Dhaval Patel, described by police as the principal promoter, and an associate, Hiren Shah, were apprehended on September 12 by a joint team of Gujarat and Odisha police. Narendra Solanki is also named among the key figures. One accused is reportedly still missing.

Police have registered at least 18 FIRs across Gujarat, Rajasthan, Maharashtra and Tamil Nadu, and say more arrests are likely.

How Much Has Been Recovered?

Here the gap between the headline figure and the reality is stark. Investigators have so far seized assets worth only ₹1.86 crore. An earlier police statement said that the large balance had been frozen, but the amount actually recovered so far is a tiny fraction of the sum collected. Police are following the money through banks and shell companies, and they have approached the Reserve Bank of India, the Google Play Store and banking institutions for information on how the mechanism worked and what loopholes may have been used.

How Many Victims Have Come Forward?

By October 31, 876 complainants had approached Amreli Police, reporting combined losses of ₹37.42 crore, and police have recorded statements from hundreds of victims. That figure is a small share of the 6.5 lakh accounts involved, which suggests that many investors have not yet reported their losses, whether because they are unaware of the investigation or reluctant to come forward.

Not to Be Confused With a Listed Company

Some reports have clarified that SD Pay has no connection with any listed company. Investors should take care not to confuse the app with similarly named businesses, such as S D Retail Limited, which is unrelated.

What Are the Red Flags?

Consumer-protection experts commonly point to a few warning signs in schemes of this kind.

1. Guaranteed high returns. No legitimate investment can promise a fixed 9 per cent a month.
2. Commissions for recruiting others. When most of the money seems to come from bringing in new members, it is a sign that the model depends on new deposits.
3. No regulator behind it. Check whether the entity is authorised by the Reserve Bank of India or the Securities and Exchange Board of India for the activity it advertises.
4. Pressure and urgency. Offers that push you to deposit quickly or bring in friends before a deadline should be treated with suspicion.
5. Wallets that hold your money. A payments app is not a bank, and balances in an unlicensed wallet may not be protected.

What Should Victims Do?

People who have put money into SD Pay or Apna Pay can file a complaint with the Amreli cybercrime police or their local police station, and can report online fraud through the national cybercrime portal or by calling the helpline number 1930. Keeping records of deposits, screenshots, chats and bank statements will help investigators.

What Happens Next?

Police are expected to continue tracing funds, identify more accomplices, and examine the role of companies and banks. The probe could expand to other states, and investigators have not ruled out that the true size of the fraud is larger. For the investors who put their savings into the app, the question that matters most is whether any of the money can be recovered. For regulators and the public, the case is another reminder of how quickly a plausible-looking app can become a vehicle for a scheme that depends on bringing in the next person.

 

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