Man loses ₹4L on app that promised double returns on digital purchases

Mumbai: A Chembur resident lost more than ₹4 lakh on an app that claimed to double the returns on digital purchases done through it

Mumbai: A Chembur resident lost more than ₹4 lakh on an app that claimed to double the returns on digital purchases done through it. While he did earn some profits early on, each time he tried to withdraw the money from the app’s wallet to transfer it to his bank account, an error message would pop up.

HT Image

According to the complaint received by Nehru Nagar police, the complainant Ajay Rane (32) had downloaded the app called Genesis Digital Assets (GDA) in late October after coming across an advertisement for it on Facebook. The app promised that any digital purchase done through it would stand the user a chance to earn returns of up to 200% to 250% over the amount spent.

In his statement to the police, Rane said that he had gained 196% over the amount he had spent in the next couple of weeks which gave him the confidence to keep using the app. “I then started making much bigger purchases through the app, even things priced around ₹30,000 or ₹40,000. I thought this would help in bringing better returns on the investment made,” he told the police.

The complainant said the app wallet and the internal calculator of returns showed favourable numbers. He also said that he discussed the app with his friend in December who also gave him ₹1,40,000 as an investment.

In December, he said, he was able to withdraw some of the money from the app wallet into his bank account. He continued his investment until he saw the returns reach more than 200% as per the app. In all, he ended up buying things worth ₹4,98,770 and was able to withdraw ₹90,000 by the end of December.

After December 29, however, he tried multiple times to withdraw the money from the app wallet but was unable to do so. On February 10, he realised that the app was no longer working on his phone.

A source from Nehru Nagar police confirmed the receipt of the complaint. “We have registered a cheating case against an unknown perpetrator, booking them under section 420 of the Indian Penal Code as well as the IT Act,” he said.