Multicrore fraud case in GIFT City raises calls for accountability

Ahmedabad: Investors affected by the alleged multicrore fraud involving a technology solutions provider have raised serious concerns regarding regulatory oversight within GIFT City and demanded swift action against those responsible.Dr Neeraj Rawat, representing investors and asset holders of Shootspace Digital Private Limited (SDPL), said during a press conference that the scam had shaken confidence in the regulatory framework governing India’s flagship financial hub.He questioned how a company accused of duping investors could operate from a globally promoted financial centre without attracting scrutiny.“The emergence of an alleged fraud of this magnitude from within GIFT City raises serious questions about due diligence, compliance monitoring and accountability mechanisms,” Rawat said.The investors sought an immediate and comprehensive investigation into the role of SDPL, its promoters and associated entities, including channel partners. They also demanded that authorities identify any regulatory or administrative lapses that may have enabled the alleged fraud to flourish.The demand comes against the backdrop of an ongoing police investigation into SDPL, which allegedly collected investments under the guise of data storage and terabyte-space rental schemes. Investigators suspect the operation functioned as a Ponzi scheme, promising investors unusually high returns.Police have already arrested two persons, including Aravalli district Congress president Atul Patel, while the company’s director Utpal Patel, and his wife Bhumi Patel, are believed to have fled to Dubai.Rawat said investors were seeking the arrest of all accused and full recovery of funds through the seizure and auction of movable and immovable assets.“This is not merely a case of financial misconduct; it is a test of institutional integrity. The credibility of GIFT City as a trusted global financial hub depends on decisive, transparent and time-bound action,” he said.Police estimate that more than 5,000 investors may have been affected, with the alleged fraud potentially exceeding Rs 100 crore.