DKZ Technologies fraud: Director, MD arrested, ₹227 crore awarded to over 17,500 investors

In a breakthrough in the DKZ Technologies fraud case, the Central Crime Station (CCS) of Hyderabad on Thursday arrested company director Ashfaq Rahil and his wife and company director Syeda Aisha Naz.

This comes about a month after police filed a case against a company in an alleged ₹100 crore fraud targeting investors.

In the raids conducted at the company’s Madhapur office and an attached farm, police seized ₹170 lakh cash, 564 original Procurement Guarantee Agreement bonds issued by the suspect on behalf of DKZ Technologies, five bundles of blank letterheads , agent and customer details, checkbooks and 13 laptops. Further investigation also revealed that around 17,500 individuals have deposited ₹227 crore.

A detailed investigation of the accounts and bank statements is underway and the total money involved in the fraud is yet to be ascertained, Hyderabad Police Commissioner CV Anand said. Meanwhile, efforts are on to nab others involved in the case, including managing director Mohammed Iqbal, other employees Umair, Moiz, Aslam, Nazeer and Bilal.

The case was booked following a complaint from Dr. Abul Jaish from Mehdipatnam in Hyderabad, stating that he had invested ₹2.74 crore as of August 2024. The complainant alleged that the company lured investors with promises of high returns (8-12%) on investments and stopped paying them after an initial period.

“The directors claimed that they were into both B2B and B2C businesses and had multiple stores including Dikazo in Madhapur and Hourly Fresh in Chaderghat and Tolichowki. They also claimed partnerships with Amazon to deliver 4,000 orders per day and with Boult, a company specializing in headphones and neckbands,” the complainant said.

When the company office was closed and the owners went incommunicado, hundreds of investors staged a protest and approached the Madhapur police in September.