Hyderabad: DKZ Technologies MD held for cheating 17,500 depositors of Rs 229 crores
Currently, the company has closed its office in Madhapur leaving the investors worried
By Newsmeter Network Published on 10 Oct 2024 3:16 PM GMT
Hyderabad: The managing director of DKZ Technologies/Dikazo Solutions, Syed Ashfaq Rahil, has been arrested for his alleged involvement in cheating 17,500 people who have deposited Rs 229 crores in the firm.
The director of DKZ Technologies Syeda Aisha Naz, who is also the wife of Ashfaq, was also arrested on Thursday at 4:30 pm.
Background of DKZ Technologies case
In September, NewsMeter reported about the alleged scam when it came to light through social media that DKZ Technologies duped 18,000 investors of Rs 700 crores. According to a press conference held by the victims, the number of people duped by DKZ Technologies in Hyderabad can be around 30,000.
Currently, the company has closed its office in Madhapur leaving the investors worried.
Afroz Khan, a private employee, explained how DKZ Technologies promised him to pay 8 to 12 per cent interest per month on his investment of Rs 5 lakhs. However, the output never materialised.
Advocate Aaashir Khan said that a joint complaint was filed by Abul Jaish and 10 others with the Cyberabad Police against DKZ Technologies/Dikazo Solutions Private Limited and its directors, namely Syed Ashfaq Rahil and Iqbal, along with several managers and employees for cheating and defrauding investors, including himself, who have collectively invested substantial sums of money in the company-approximately around Rs 25 crores, though the actual sum may exceed Rs 100 crores.
Case details
In September, Dr Abul Jaish, a resident of Gudimalkapur, Mehdipatnam, filed a complaint about DKZ Technologies and the alleged scam.
He said, he came to know about DKZ Technologies in January 2024 through YouTube. He said he was impressed by the speeches of influencers about DKZ Technologies/Dikazo Solutions.
He said he visited the office of DKZ Technologies in Madhapur here. There, he met Syed Ashfaq Rahil, Mohammed Iqbal, Syed Umer Ahmed, Moiz, Nazeer and Bilal, who were the managers at DKZ Technologies.
They presented him with promotional materials offering deposit opportunities with a minimum amount of Rs 5,000 onwards with interest rates ranging from 8 per cent to 12 per cent. The directors claimed that they were engaged in B2B and B2C businesses. The managers said they had stores like Dikazo in Madhapur and Hourly Fresh in Chaderghat and Tolichowki and claimed partnerships with Amazon for delivering 4,000 orders per day. They said they have also partnered with BOULT, a company specialising in headphones and neckbands.
Believing the promotional content, Dr Jaish deposited Rs 2.74 crores in August 2024. But the company has currently closed its business.
Cash worth Rs 170 lakhs found in raid
A special team was formed for apprehending the accused persons.
The team raided the accusedās farmhouse and the office of DKZ/Dikazo Solutions in Madhapur. They seized 564 original procurement guarantee agreement bonds executed by the accused on behalf of DKZ Technologies, five bundles of blank letterheads of DKZ Technologies, long notebooks containing agent and client names, bank chequebooks, 13 laptops, and cash worth Rs 170 lakhs.
By examining the victim statements and company records, it has come to be known that 17,500 people deposited money in cash and through online transactions totalling Rs 229 crores.
The accused is said to have admitted their guilt in the case. Detailed examination of accounts and bank statements is still ongoing and the total amount of fraud is yet to be ascertained. The special team will continue to make efforts to arrest the other accused. Investigation into agents and influencers is also ongoing.
A case has been registered under sections 403, 406, 420 r/w 120-B IPC and section 5 of the TSPDFE Act-1999.
Public advisory
The Hyderabad police have requested the public to not fall victim to online schemes which promise high returns. The public is encouraged to invest in banks and government-registered financial establishments only. Social media advertisements are luring the innocent public to invest in fraudulent schemes which the public should be highly cautious with their hard-earned money.
