This Hyderabad Company Cheated 30,000 Investors in Rs 700 Crore Madhapur Scam

DKZ Technologies based in Madhapur is accused of scamming over 30,000 investors of Rs 700 crore. Founded in 2018 by Ashfaq Rahil and Mohammad Iqbal under the names Dikazo and DKZ Investments, the business has been under fire since payments were stopped in August 2024, which sparked protests from victims demanding compensation.

Fraud Details and Modus Operandi

DKZ Technologies first positioned itself as a good investment prospect, providing two approaches B2B and B2C. Investors were enticed by big profits and discounts on home products. To boost credibility the company opened platforms in Madhapur, Chaderghat and Tolichowki and broadcast a commercial video starring former Deputy Chief Minister Mohammed Mahmood Ali.

DKZ Technologies had only 1,000 investors in 2022. The business paid out its profits to investors on time through June 2024. The dividend for July has been delayed. Investors who questioned the company were informed that the delay resulted from its attempts to obtain RBI-compliant NBFC accreditation. However, this turned out to be a fraudulent assertion.

This number increased to 18,000 in Hyderabad alone by the middle of 2024, with Telangana, Maharashtra, Karnataka, and considerable contributions from NRIs in Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Muscat, the United States, Australia, the United Kingdom, and Canada totalling ₹700 crore in investments. This huge surge in investments was spurred by endorsements from renowned YouTubers and social media influencers, like Abdul Razzaq (Golden Hyderabadies), Kafeel @ Taffu, Priya Reddy @ Kirak Khala and others all of whom were given Rs 1 lakh each for their promotional content.

Investor Protests and Legal Action

After the company halted payments, investors protested at the Press Club in Somajiguda pleading for government involvement. Victims who invested between Rs 1 lakh and Rs 50 lakh and sold personal valuables, such as gold, are attempting to recoup their losses. The EOW has received an FIR under sections 403, 406 and 420 of the Indian Penal Code. MBT leader Amjed Ullah Khan accused the Telangana government of failing to prevent the scam and sought a CBI inquiry and property confiscation.

Khan said on X that the Telangana State Intelligence Department and Telangana administration stayed inactive while 18,000 investors were duped out of Rs 700 crore by a fake business called DKZ Technologies. In 2018, Syed Ashwaq Rahil and Mohammed Iqbal founded DKZ Technologies and its sister companies DIKAZO Solutions Private Limited and DKZ Investments, promising investors returns ranging from 8 per cent to 12 per cent.

Influence of Social Media and Authorities Response

Influencers on social media played a significant role in attracting investors to DKZ Technologies. The company gave its schemes more legitimacy by using aggressive marketing techniques and high-profile endorsements. Hyderabad police responded to the protests by forwarding the matter to the EOW for additional examination.

Government Intervention

Investors want property seizures and legal action against the company's promoters, and they want the government to act quickly. Many customers are demanding stronger laws to stop such scams in the future because they fear they won't ever see their money again. Authorities are searching for the missing promoters and securing any residual assets to retrieve the investors' money while an investigation is still underway.