In a recent case of financial fraud, Ankush Katiyar, the founder of a company that promised substantial cashback returns, has been arrested following a string of fraudulent activities that led to massive financial losses for its users. The company, which had initially started as a prepaid payment service, later shifted its focus to offering enticing cashback deals that drew in a large user base, attracting millions of downloads. However, as the business began promising extraordinarily high cashback rates, such as Rs 7,50,000 on a deposit of Rs 59,999, users began falling victim to what would later be revealed as a scam.
One of the victims, Ramavtar Sharma from Rajasthan, took out substantial loans to invest in the company’s promises of guaranteed returns. He, along with others, is now facing severe financial losses after the company halted operations in April 2024.
The company’s deceptive practices intensified after it introduced a 20% convenience fee in July 2023, an unusual move that was followed by a fraudulent promotional offer to bypass these fees. Despite the app’s nearly 2 million downloads, concerns about its poor ratings went largely unnoticed until it was too late. By January 2024, reports began flooding in from customers claiming that, although they had made payments, the funds were never received by the intended vendors. By March 2024, the company had suspended its services, and users were no longer able to withdraw their funds.
The scam impacted individuals from all walks of life, from small business owners to high-ranking executives. The total number of victims has now reached approximately 800, with many reporting financial ruin after investing heavily in what they believed were guaranteed returns.
The company’s co-founder, Shivani Maheshwari, is also under scrutiny, despite having no prior corporate experience. She faces serious questions about her involvement in the fraudulent activities alongside Katiyar. Both are now the subject of an ongoing investigation by the Economic Offences Wing of Gurugram Police, with FIRs filed against them.r
On September 4, 2024, Ankush Katiyar was arrested by the Delhi Police in connection with the fraud. Authorities are continuing to investigate the case, but it has raised questions about the effectiveness of regulatory mechanisms and enforcement agencies, especially since multiple complaints to institutions such as RBI, SEBI, Income Tax, and GST departments had remained unaddressed.
