A SENIOR official working with a major airline was allegedly duped of Rs 2.91 crore over nearly a decade through share-trading and forged capital gains statements by his relationship manager. The cheating case was registered at the Powai police station on Thursday.
According to the complaint, the victim invested in equity and derivatives through the accused, who allegedly misled him by changing his registered email ID, preventing him from receiving official communications from the investment firm. The accused is also alleged to have sent manipulated investment reports showing false profits.
Police said the complainant, Deepak D, 58, lives in the Hiranandani area of Powai with his wife and daughter. He was introduced to Ajay Palith through a common friend in 2014. Palith claimed that he was working with a reputed share trading and investment firm.
Palith allegedly gave him basic information about investments in the share market, including equity and derivatives, and promised high returns. The complainant agreed to invest and opened a trading and demat account as per Palith’s directions.
In July 2014, the complainant handed over documents required to open the demat account, including his PAN card, passport, cancelled cheque and Form 16. Palith also obtained his signature on a power of attorney. The complainant received the demat account number and password and was informed by the firm that Ajay Palith was his relationship manager.
“The complainant was not well versed in trading, so Palith was handling the account on his behalf,” a police officer said.
The victim initially invested Rs 5 lakh. Over the years, he invested around Rs 1 lakh in equity and nearly Rs 2.9 crore in derivatives, transferring funds through cheques and RTGS from his bank account. The accused allegedly sent him periodic capital gains statements showing profits, based on which the victim paid income tax.
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“Three to four years ago, the suspect incurred a loss of Rs 50 lakh in the investment, but instead of informing the demat account holder, he manipulated the statement and showed Rs 5 lakh profit and sent it to him,” a police officer involved in the probe said.
The fraud came to light in 2023 after discrepancies were noticed between the capital gains and annual statements issued by the firm and the reports shared by Palith. The manipulated reports prompted the victim’s chartered accountant to flag serious irregularities and advise him to close the account and withdraw funds.
Last year, when the complainant informed Palith that he wanted to withdraw his funds and close the demat account, Palith allegedly told him that the derivatives balance was zero and the account had been wiped out due to heavy losses. He also informed the victim that he had allegedly changed the registered email ID linked to the trading account in 2022 without his consent, preventing him from receiving official statements and OTP alerts from the firm, the FIR states.
The complainant later approached the investment firm and was informed that relationship managers were not authorised to operate client accounts or access login credentials. On obtaining official records, he discovered that the capital gains statements previously sent to him were allegedly forged.
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He then approached the Powai police and submitted a written complaint. Following an investigation, police registered a case against Palith under sections related to cheating, criminal breach of trust and forgery. The accused will be served a notice soon.
“During the preliminary investigation, it appears that Palith was not the direct beneficiary of the fraud but manipulated the statements and kept the victim in the dark about the market losses,” a Powai police officer said.
Police are also checking Palith’s past records, as he is suspected to have duped another person using a similar modus operandi, the officer added.
Manish Kumar Pathak is a dedicated journalist reporting for The Indian Express from Mumbai. His work demonstrates substantial Expertise and Authority across the complex field of crime reporting, with a strong focus on law enforcement actions, fraud, and cyber security challenges facing the metropolitan region.
Expertise & Authority
Affiliation: Reports for the nationally recognized daily, The Indian Express, providing his content with high Trustworthiness.
Geographical Focus: Provides comprehensive, ground-level coverage of breaking news and investigative matters across Mumbai and the surrounding regions (e.g., Thane, Vasai).
Core Authority: His reporting portfolio highlights deep Expertise in crucial beats, including:
Cyber & Financial Crime: Extensive coverage of sophisticated scams, including cases involving high-value cyber fraud, stock market manipulation scams, and fraudsters using government figures to gain trust.
Law Enforcement & Investigation: Reports directly on major police actions, including arrests made by the Economic Offences Wing (EOW) in fraud cases (e.g., MHADA flat scams) and detailed coverage of murder and kidnapping investigations.
Major Incidents & Public Safety: Covers significant incidents like building collapses, road accidents, and public safety issues such as theft at large public events.
Defence & Maritime: Also covers key updates regarding the Indian Navy, including the commissioning of new vessels and strategic defense announcements.
Manish Kumar Pathak's consistent focus on crime, fraud, and the workings of the Mumbai police system establishes him as a trusted and authoritative source for critical news in Western India. ... Read More
