Mumbai: ED Raids 13 Locations In Gujarat In ₹91-Crore Q-Fon App Ponzi Scam

Mumbai: The Enforcement Directorate (ED), Mumbai Zone II, on Tuesday conducted search operations at 13 locations in Gujarat as part of a money laundering investigation linked to the alleged Q-Fon App digital investment scam.

According to ED officials, searches were carried out at 10 locations in Ahmedabad and three in Surat, along with a few premises in Mumbai. The raids were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, against Q-Fon App Limited and its directors in connection with a large-scale financial scam involving public investments. The searches targeted premises linked to the company’s directors and related entities suspected of receiving investors’ money.

The search was ongoing at all the three locations until the report was published and no information about any arrests or seizures was shared.

The ED action follows an FIR registered by the Economic Offences Wing (EOW), Thane, on December 28, 2024. The FIR alleged that Q-Fon App Limited, along with associated entities and directors including Sudhir Kotadiya, floated a Ponzi-style digital investment scheme claiming to generate earnings from online advertisements.

Investigation revealed that the accused promised investors unusually high returns, ranging between 2% and 10.5% per month. They collected huge sums from the public through cash deposits and online transfers routed via accounts of linked individuals and entities. The funds were allegedly siphoned off, and the accused later absconded with the investors’ money.

The Q-Fon App scam, which came to light following multiple complaints from duped investors, is part of a growing trend of app-based ponzi operations exploiting digital platforms to defraud citizens.

Officials said the fraudulent network, operating out of Ahmedabad, lured hundreds of investors across Maharashtra. The EOW FIR alleged that the scheme was led by Jay Sukhbhai Sakhia, also known as Patel, along with associates Umang Thathadia, Anant Patel, Sanjaybhai Sarithi Thathadia, and Saddubhai Dushyantbhai Thathadia. They reportedly collected crores of rupees via cash deposits and online transfers routed through linked entities.

According to an investor’s statement, the scam’s origins trace back to May 2020, when the accused introduced the “Digital Investment App” during one of the meetings. “They claimed to be running a legitimate business from Ahmedabad, assuring investors of monthly profits in US dollars through a mobile app available on the Google Play Store,” the investor told investigators.

The accused allegedly convinced participants of the scheme’s authenticity by claiming to have “connections within the Thane and Mumbai police.” Several meetings were held in Thane, Mumbai, Panvel, and Ahmedabad to persuade investors to contribute to what was described as a “secure digital earning platform.”

Later, victims discovered that the operation was a ponzi scheme, and the accused disappeared after collecting crores of rupees. The Thane EOW arrested Parag Ashok Kumar Shah, a key accused in the case, in June. Sources said that Shah, a small businessman from Narayangaon near Pune, had conspired with other businessmen from Gujarat to execute the scam.

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ED sources added that the Ahmedabad-based network, operating under the guise of a “digital investment platform,” is suspected to be part of a larger pan-India ponzi racket, which defrauded investors across multiple states before vanishing without a trace.

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