A software engineer who duped nearly 300 people across several districts of Uttar Pradesh of Rs 30 crore through a fake trading application was arrested in Sant Kabir Nagar on Wednesday. The accused, Dhananjay Shukla (35), was taken into custody along with his wife Rajni Prajapati (30) in connection with a fraud case registered at Mahuli police station in October 2025.
How the Fraud Operated
Police revealed that Dhananjay operated a website named 'TVS Solution' and developed a trading app that promised investors up to 6% monthly commission for keeping money in digital wallets for 180 days. While Dhananjay holds a BTech degree, his wife is a master's in computer science. The couple allegedly used their technical expertise to build a sophisticated fraudulent system.
Police said Dhananjay established five offices in Lucknow and specifically targeted schools and coaching centres to attract investors. The money collected was never invested in the share market or legitimate trading platforms. Instead, funds were diverted elsewhere, while the app continued to show fabricated balances to maintain investor confidence.
Referral-Based Expansion
Investigators found that the accused ran a referral system that offered higher commissions to people who persuaded others to join the scheme. This helped the network expand rapidly, with many victims unknowingly bringing in their friends, relatives and acquaintances. Initially, investors received some returns for a few months, which further strengthened trust and encouraged larger investments.
Once confidence was established, the fraudulent network expanded significantly beyond Uttar Pradesh into several other states, according to Sant Kabir Nagar SP Sandeep Meena. Police suspect Dhananjay used the crime proceeds to build a luxurious house near the Yamuna Expressway.
Investigation and Arrests
The fraud came to light after multiple investors realised they were unable to withdraw their money. Following complaints, an FIR was registered at Mahuli police station in October 2025 on the complaint of Rangeelal Maurya. Initially, police named 13 accused persons in the FIR. However, during investigation, they found that several of those named were themselves victims who had been manipulated into promoting the scheme.
Police are now reassessing the role of each accused person to distinguish actual conspirators from duped investors. CO City Abhay Nath Mishra stated, 'Names of those whose involvement is established will be added. Police are making efforts to ensure no innocent person is sent to jail.'
Seizure of Property and Further Action
Authorities are preparing to initiate attachment and seizure proceedings against the property acquired with the fraud money. Police suspect the accused diverted funds into real estate and personal assets. Detailed scrutiny of records recovered from the offices is underway, including transaction details, investor databases and property-related documents.
Police believe further revelations may emerge once the accused is taken into custody for questioning. The financial trail of the network is being traced, and more arrests are likely as the investigation progresses.
