Bharuch: The Directorate of Enforcement (ED), Mumbai Zonal Office, has arrested two persons from Bharuch in Gujarat in connection with a ₹183-crore fraudulent digital investment scheme operated through the QFON App. The accused have been identified as Sudhir Dalsukhbhai Kotadiya and Umang Santibhai Kotadiya, who were taken into custody on March 11 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to an official press release issued by the ED, the arrests were made during an ongoing money-laundering investigation linked to a Ponzi-type digital investment scheme run through M/s QFON App Limited and its associated entities. The accused were produced before the Special PMLA Court in Mumbai, which granted ED custody till March 20 for further interrogation.

The investigation was initiated on the basis of an FIR registered at Vartak Nagar Police Station in Thane, Maharashtra, on December 28, 2024, under various sections of the IPC and the MPID Act against Sudhir Kotadiya, Umang Kotadiya, Jaysukh Sakhariya and others for allegedly running a fraudulent investment scheme.

Investors lured with high monthly returns

ED officials said the accused targeted investors from Gujarat and Maharashtra by promising unusually high monthly returns ranging from 2% to 10.5%. The scheme claimed that profits would be generated through online advertisement viewing and app-based digital activities.

However, the investigation revealed that the scheme operated as a Ponzi model, where money collected from new investors was used to pay returns to earlier investors, while a large portion of the funds was siphoned off.

The agency found that investor money was routed through multiple bank accounts belonging to firms, individuals and shell entities linked to the accused. Funds were also allegedly transferred in cash through Angadiya operators to conceal the trail.

So far, the ED has identified proceeds of crime worth approximately ₹183 crore generated through the fraudulent scheme.

Accused traced in Bharuch after fleeing abroad

During the investigation, the accused were found to be absconding both in the predicate offence and in the PMLA probe. Officials said they had fled to Dubai (UAE) and later returned to India through the Nepal route in an attempt to evade arrest.

After sustained surveillance and intelligence-based tracking, ED traced their location in Bharuch district of Gujarat, where searches were conducted and both accused were apprehended on March 11.

Earlier searches conducted at multiple locations had resulted in the seizure of ₹2.51 crore in cash, along with digital devices, documents and financial records linked to the scam.

The ED said further investigation in the case is in progress. DeshGujarat