Rs 500 crore scam linked to GIFT City uncovered in Gujarat

A large-scale alleged investment fraud connected to a proposed data centre venture in GIFT City has come to light in Gujarat, with preliminary estimates suggesting the scam could involve nearly Rs 500 crore.

The allegations are centred on Utpal Patel, originally from Isri village in Meghraj taluka of Aravalli district, who is accused of attracting investors through a high-return technology investment scheme.

According to information emerging from affected investors, Patel allegedly promoted a business model based on renting “terabyte” (TB) units in a data centre setup. Investors were reportedly encouraged to invest around Rs 38,000 per TB with promises of fixed monthly returns of nearly Rs 1,650.

To build credibility, offices were allegedly established in GIFT City, Noida and Kashmir, while the venture was projected as a rapidly expanding technology enterprise. The attractive return model is believed to have drawn investments from hundreds of people from Gujarat and several other States.

The alleged fraud came under scrutiny after operations at the GIFT City office abruptly stopped, and investors reportedly failed to receive promised payouts. Concern among investors increased after the office was found locked and communication channels became inactive.

Sources claim the accused has gone untraceable after reportedly shutting down social media accounts. There is speculation that he may have left the country a few days ago, though no official confirmation has been issued so far. His residence in Isri village is also said to be locked.

Investors allege that Patel maintained a lavish public image, including the use of luxury vehicles and appearances at public events. It is also claimed that photographs and recognition received at various functions were used to strengthen investor confidence.

The incident has triggered anger among investors, many of whom are now demanding a detailed financial investigation and strict legal action against those involved in the alleged fraud. Authorities are expected to examine the investment structure, fund flow and possible wider links related to the case.