The company advertised high deposit interest rates on YouTube, hiring agents and social media influencers. Around 30,000 people invested, 18,000 of them from Hyderabad alone.
Published Sep 15, 2024 | 12:51 AM ⚊ Updated Sep 15, 2024 | 12:51 AM
DKZ Technologies vanishes with Rs. 700 crore (picture taken from DKZ Facebook page)
A Madhapur, Hyderabad-based firm has allegedly swindled ₹700 crore from 18,000 investors in Telangana, and many others from neighbouring states.
The company, DKZ Technologies, had promised huge returns on investments and roped in YouTubers and social media influencers to attract investors.
Several people have now complained to the police that the company had downed shutters without returning their money. Many had deposited their life savings, and money raised through selling gold, in the firm, expecting a huge interest.
The “cheated” investors staged a protest at the Central Crime Station (CCS) in Basheerbagh on Friday, 13 September, demanding their money back.
Speaking to the media at the Press Club in Hyderabad, they recalled how the company representatives, agents, and social media influencers had taken them for a ride.
In advertisements posted on YouTube, the company promised high rates of interest on deposits in several states. It hired agents and social media influencers to mobilise deposits. About 30,000 people reportedly parked their hard-earned savings in the company, with about 18,000 people from Hyderabad alone.
The firm initially paid high interest rates as promised, and gained trust and more deposits. The payment of interest abruptly stopped after the organisers had allegedly mobilised huge deposits.
The complainants accused Ashifaq Raheel of Chennai and Mohammad Iqbal of Andhra Pradesh of setting up the company in Madhapur. They offered up to 12 percent monthly interest on deposits.
Last month, the organisers disappeared after shutting their office. They had told the depositors that theirs was an e-commerce company involved in selling household articles and also mobilising deposits. They offered up to 15 percent discount if they purchased articles through their app.
The company reportedly collected deposits ranging from ₹1 lakh to ₹50 lakh from depositors from Tamil Nadu, Telangana, AP, Maharashtra and Karnataka. After realising that they had been taken for a ride, the depositors rushed to Madhapur to complain, and later, on the advice of the police, approached the Central Crime Station.
Some depositors invested money in the company after selling their gold as the interest promised appeared attractive. The depositors requested the government to intervene and ensure the safe return of their deposits.
MBT leader Amjed Ullah Khan, in a message on X, described the fraud as a total failure of the state intelligence department. Accusing the Telangana government of being soporific, he demanded a CBI probe.
Total failure of State Intelligence Department and Telangana State Govt which was sleeping till investors were duped for 700 Crores by DKZ Technologies, @amjedmbt demands @CBIHeadquarters Inquiry into the scam and role of @mahmoodalibrs and some YouTubers also be investigated:…
— Amjed Ullah Khan MBT (@amjedmbt) September 11, 2024
He said that during 2018 two persons, Syed Ashwaq Rahil and Mohammed Iqbal, registered DKZ Technologies and its sister organisations, DIKAZO Solutions Private Limited, and DKZ Investments, and offered 8 percent to 12 percent benefits to investors.
The men offered two schemes called B2B & B2C and first opened a store in Madhapur, “Dikazo Madhapur” and other shops in Chaderghat and Tolichowki called “Hourly Fresh”. Time and again the fraudsters posted videos and photos with former Deputy Chief Minister & Minister for Home Mohammed Mahmood Ali to gain investors’ confidence.
Till the end-2022 there were very few investors but the company involved many YouTubers like Abdul Razzaq (Golden Hyderabadies), Kafeel @ Taffu, @ Comedy Ka Hangama, Priya Reddy @ Kirak Khala, Imran @ Immi, Najeeb of Warangal Dairies and Mohammed Bin Ishaq of Baigan Wines. They were paid ₹1 lakh each for every promotional content.
The YouTubers made videos claiming the investment was ‘Halal Investment’ and claimed that they had also invested in the firm.
The promoters of the company appointed Syed Umair as a manager. He created videos and uploaded them on his personal accounts on Facebook, YouTube, and Instagram to lure investors. The services of Aslam, Fatima, Syed Nazeer, Moiz, Salman, Bilal, Sohail, Sunitha, Maryam, Bhagyalaxmi, and Alina Ruhi were also utilised.
Following aggressive promotion, the investors grew from a mere 1,000 in 2022 to 18,000, and deposits to the tune of ₹700 crore were collected from them. The investors were mainly NRIs from Telangana, Maharashtra, and Karnataka, residing in Saudi Arabia, Kuwait, UAE, Qatar, Muscat, the USA, Australia, the United Kingdom, and Canada.
In August 2024, DKZ Technologies reportedly stopped paying the monthly installments (profit) to the investors, and the promoters went missing after shutting all establishments. Some investors approached Madhapur Police Station for help but as the amount was big, they were asked to approach the Economic Offences Wing (EOW) which registered an FIR No: 200/2024 u/s 403, 406, 420 r/w 120 B of IPC on 4 September 2024 and launched a probe.
While questioning the state Intelligence Department and the government, Amjed Ullah Khan demanded a probe into the role of former home minister Mohammed Mahmood Ali and YouTubers. He also demanded the attachment of all properties belonging to the promoters.
(Edited by Ananya Rao).
