Hyderabad (Telangana): A major investment fraud has come to the fore in Hyderabad after a firm DKZ Technologies allegedly swindled Rs 700 crore from at least 18,000 investors, several victims of this 'fraud' alleged while speaking to media here on Friday.
The company, according to the investors, had lured them with the promises of huge profit for their money, offering B2B and B2C schemes with at least 12 per cent returns every month. However, the people who invested accused the company of leaving them in the lurch and fleeing with crores of rupees.
"We have invested a lot of money with this company. We recently came to know that they had closed their offices and run away. We went to Madhapur police station, however, they refused to register our complaint. They sent us to a different police station... It was after a lot of effort that an FIR was registered but the police are not taking any action in this case. There are at least 18,000 investors who have been duped of around Rs 700 crores. The company used YouTubers to lure investors," one of the victims of the fraud told media.
Know About Controversial Scheme
Taking to X, MBT spokesperson Amjed Ullah Khan slammed the Telangana State Intelligence Department and Telangana government, claiming they had been sleeping till 18,000 investors were duped to the tune of Rs 700 crore by the 'bogus' firm.
Giving more details about the alleged fraud, Khan claimed that in 2018, two persons Syed Ashwaq Rahil and Mohammed Iqbal registered a firm by the name DKZ Technologies and its sister organisations DIKAZO Solutions Private Limited, DKZ Investments, offering 8% to 12% benefits to the investors.
He said that the 'bogus' company offered B2B & B2C schemes and first opened an office in Madhapur by the name "Dikazo Madhapur" and eventually as the number of investors grew, they opened its branches in Chaderghat and Tolichowki areas as well.
The MBT spokesperson said the alleged fraudsters involved several local YouTubers and gave them Rs 1 lakh for each YouTube video to promote their business. The YouTubers, he said, lured people to invest claiming that it was halal and even showed that they too had invested in the firm. Through aggressive marketing and endorsements, the company attracted thousands of investors, who collectively invested at least Rs 700 crore.
"From a mere 1000 investors in 2022, their firm received 18,000 investors to the tune of 700 Crores from three states Telangana, Maharashtra and Karnataka especially from NRIs of above states living in Saudi Arabia, Kuwait, UAE, Qatar, Muscat, USA, Australia, United Kingdom and Canada," Khan wrote in his post on X.
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
"All of a sudden during August 2024, the fraudsters who formed the firm DKZ Technologies stopped paying the monthly instalment (profit) to the investors and closed their all establishments and ran away. Some investors approached Madhapur Police Station for help but as the amount was huge 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 4th Sep 2024 and started investigation," Khan said.
Protests By Outraged Victims
The victims alleged on Friday that police were dillydallying in the case and despite their complaints, they received no immediate response, prompting them to protest in front of the Central Crime Station (CCS) on Friday. One of the protestors included Ashir Khan, a lawyer representing the victims, Amina from a charity organisation, and Safia, president of the Nari Niketan Foundation.
Legal and Financial Impact
The alleged scam has drawn attention from across the country, with reports indicating that investments were not limited to India but extended to Dubai and the United States. In one such example, a doctor and his family had invested Rs. 2.72 crore in the scheme over four months.
Victims’ Call for Justice
After the fraud came to the fore, the victims demanded immediate action by the police so that their hard-earned money could be recovered. They also appealed to the higher authorities to speed up the matter. The story will be updated as soon as we have a response from Telangana police.
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