₹400 Crore ‘Data Investment’ Scam Rocks GIFT City, 33,000 Investors Seek Justice

Ahmedabad | Gujarat — A massive investment fraud worth over ₹400 crore has surfaced from Gujarat’s financial hub, GIFT City, leaving more than 33,000 investors across Gujarat, Haryana and Goa fearing the loss of their life savings. Dozens of victims gathered at the Gandhinagar CID Crime headquarters and the DGP office demanding urgent legal action against Shoot Space Digital Private Limited, the company accused of orchestrating the alleged Ponzi-style scheme.

Investigators say the scam revolved around selling “terabyte data space investments” promising lucrative monthly returns — a pitch that allegedly trapped thousands of investors over the past few years.

The 5% Monthly Return Trap

According to complainants, the scheme was masterminded by Utpal Patel, a resident of Aravalli district who set up a lavish office in GIFT City and organised grand promotional events to build credibility.

Investors were promised a fixed return of 5% every month if they invested in digital data storage space. Initially, payouts were made regularly, encouraging more people to invest larger amounts ranging from ₹5 lakh to ₹3 crore.

Victim investor Mehul Shah said, “The company paid returns in the beginning, which built trust. Many of us invested our savings believing the business was genuine.”

Payments Stop, Promoter Disappears

The alleged fraud began to unravel when payouts suddenly stopped two months ago. Investors claim the promoter has since gone incommunicado and is suspected to be absconding.

Mehul Shah alleged, “Whenever we questioned delays earlier, we were warned not to file police complaints. We were told if legal trouble started, nobody would get their money back.”

The sudden disappearance of the accused has intensified fears that the entire operation was a carefully designed Ponzi scheme.

Crypto Collection Raises New Alarm

Adding to investor anxiety, victims claim the accused has launched a new website and is continuing to collect money via cryptocurrency deposits. Complaints have been submitted to cybercrime authorities, urging immediate action to prevent further losses.

One investor said, “The collection is still going on. We want authorities to stop this before more people fall into the trap.”

Thousands Unite for Action

More than 40 investors met senior CID Crime officials demanding an Economic Offences Prevention Branch investigation. Officials informed them that formal action will begin once approval is received from the DGP.

Investor representative Bhaveshpuri Goswami said, “This is a classic Ponzi model. Money was collected, partial returns were paid, and then larger investments were encouraged. Around 35,000 people may be affected.”

How the Money Was Raised

According to complainants, the company charged around ₹38,000–₹39,000 per terabyte of data space. With nearly 95,000 terabytes sold, total investments are estimated between ₹400–₹500 crore.