Of late, serious fraud cases have been reported where companies have converted the greed of other people into their investment, reaping huge benefits by duping many in the process. Such companies promise high returns on low investments but quickly defraud investors by immediately closing down the operations. A recent case in Hyderabad points to this fact.
A complaint has been filed against Hyderabad-based DKZ Technologies on grounds of cheating to the tune of ₹700 crores. The firm promised extraordinary returns on investment and initially provided regular payouts to attract more investors. However, it abruptly closed its board, leaving investors stranded and seeking help from the police.
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It is reported that over 18,000 investors in Andhra Pradesh, Telangana, and Maharashtra have been cheated, with total losses amounting to more than ₹700 crores. The DKZ Technologies office in Madhapur has not been functioning for some time now, indicating the magnitude of the scam.
The investors have voiced their complaints through the media, quoting the promise of the company of returns of 8-12% and meeting it in the first few months. They say that they were attracted by social media promotion and invested through borrowings, selling gold, land, and then found their investments gone up in smoke.
The company stopped paying in June 2024, and with that, the accused fled with the money. Based on complaints from victims, police filed a case against DKZ Technologies under IPC sections 403, 406, 420, and R/W 120-B (200/2024) at CCS, Hyderabad, for investigation.
