Ahmedabad (Gujarat) [India]: A major alleged investment fraud estimated at over ₹400 crore has emerged from Gujarat’s financial hub, GIFT City, triggering panic among thousands of investors across multiple states. The case involves Shoot Space Digital Private Limited, a company accused of operating a suspected Ponzi-style investment scheme linked to “terabyte data space investments” promising unusually high monthly returns.
According to investor groups and complainants, more than 33,000 investors from Gujarat, Haryana, Goa, and other regions may have been impacted by the alleged scam.
Dozens of affected investors recently gathered outside the CID Crime headquarters in Gandhinagar and the DGP office, demanding immediate legal action and a full-scale investigation into the company’s operations.
Investors Allege 5% Monthly Return Promise Was Used to Attract Funds
As per complaints submitted to authorities, the investment model revolved around the sale of “digital data storage space” where investors were allegedly promised fixed returns of approximately 5% per month.
The scheme reportedly encouraged individuals to invest amounts ranging from:
₹5 lakh
₹10 lakh
Up to ₹3 crore
Complainants claim that initial returns were paid regularly during the early stages of the scheme, which helped build confidence and encouraged larger investments.
Investor Mehul Shah stated that many participants believed the business appeared legitimate due to:
Consistent initial payouts
A professionally operated office in GIFT City
Large promotional events
Aggressive marketing activities
“The company paid returns initially, which created trust among investors. Many people invested significant personal savings believing the business model was genuine,” Shah reportedly said.
Alleged Scheme Linked to Promoter Utpal Patel
According to investor allegations, the operation was reportedly led by Utpal Patel, a resident of Gujarat’s Aravalli district.
Complainants allege that the accused established a high-profile office setup in GIFT City and conducted promotional campaigns to attract investors into the digital storage investment model.
However, the alleged fraud began surfacing when monthly payouts reportedly stopped nearly two months ago.
Investors further claim that the promoter has since become unreachable and is suspected to be absconding.
Investors Fear Ponzi-Style Operation
Several complainants have described the scheme as resembling a classic Ponzi model where:
Early investors receive returns
Confidence is built through initial payouts
Larger investments are encouraged over time
Payments eventually stop once inflows slow down
Investor representative Bhaveshpuri Goswami stated that nearly 35,000 individuals could potentially be affected if the scale of the operation is fully uncovered.
“This appears to be a structured Ponzi-style operation where funds from newer investors were allegedly used to pay earlier participants before collections stopped,” Goswami reportedly said.
Cryptocurrency Collection Allegations Raise Fresh Concerns
Adding to investor concerns, complainants have alleged that a new website linked to the operation may still be collecting funds through cryptocurrency-based transactions.
Victims have reportedly approached cybercrime authorities requesting urgent intervention to:
Freeze ongoing collections
Block suspicious digital transactions
Prevent additional investor losses
One investor stated that authorities must act quickly before more individuals become trapped in the alleged scheme.
Estimated Investment Exposure Between ₹400–₹500 Crore
According to preliminary investor estimates, the company allegedly charged approximately:
₹38,000 to ₹39,000 per terabyte of data space
Complainants claim that nearly 95,000 terabytes were sold under the investment structure.
Based on these figures, total investor exposure is currently estimated between:
₹400 crore
₹500 crore
However, authorities are yet to officially confirm the complete financial scale of the alleged fraud.
Investors Seek Economic Offences Investigation
More than 40 investors reportedly met senior CID Crime officials demanding that the matter be transferred to the Economic Offences Prevention Branch (EOPB) for a detailed financial investigation.
According to investor groups, officials informed them that further legal action would proceed following administrative approval from senior authorities, including the DGP office.
The case has now drawn significant public attention due to:
The large number of alleged victims
The involvement of GIFT City
The use of digital investment narratives
Allegations of crypto-linked collections
Rising Concerns Over Digital Investment Frauds
Financial analysts note that digital and technology-linked investment scams have increased rapidly in recent years, particularly those involving:
Crypto investments
Cloud storage schemes
AI-related investment products
High-return digital assets
Unregulated fintech models
Experts advise investors to exercise caution before investing in platforms promising:
Guaranteed high monthly returns
Fixed passive income
Unrealistic ROI structures
Unverified digital asset opportunities
Final Outlook
As investigations continue, the alleged Shoot Space Digital investment fraud has emerged as one of the major financial controversy stories linked to Gujarat’s startup and digital investment ecosystem in recent times.
With thousands of investors reportedly awaiting clarity and legal intervention, authorities are expected to examine:
Fund flow structures
Investor transaction records
Company operations
Digital payment channels
Cryptocurrency-linked activities
The development has also intensified broader discussions around investor awareness, fintech regulation, and the need for stricter monitoring of high-return digital investment schemes operating in India.
