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Thousands Protest Alleged Data Centre Scam
6 May
Summary
- Thousands of investors protest alleged scam at GIFT City data centre.
- Scheme promised monthly returns, but payments reportedly stopped.
- Around 33,000 individuals claim to be victims of the alleged fraud.
A significant number of investors converged at a data centre facility within GIFT City, protesting what they allege to be a fraudulent investment scheme. The private operator's facility became the focal point for thousands seeking clarity on their investments, leading to police deployment to manage the unrest.
Preliminary reports suggest that around 33,000 people may have been impacted by the scheme, which reportedly promised fixed monthly returns. Investors claim they were initially paid, encouraging larger investments, but recent weeks saw payments stop. Attempts to contact the operators have reportedly failed, escalating the situation.
Dabhoda police are investigating the allegations, with thousands of investors submitting applications. However, a formal complaint is yet to be registered, and it is anticipated that verifying the claims, which may involve several crores, could take one to two months before an FIR is filed.
The scheme allegedly involved investing in digital or data storage-related assets. Many affected investors stated they had invested their life savings, taken loans, or sold assets to participate, only to face non-payment.
