Gold futures fraud: three arrested

The Mumbai police have arrested three persons including a jeweller for trading illegally in gold futures without a valid licence. The matter is being investigated by L T Marg police who have arrested Vikas Mohanlal Mehta (51),a south Mumbai-based jeweller,and his employees Mukesh Mehta (37) and Kantilal Malecha (27). The police suspect that they could be part of a network of illegal traders.

Under trading norms,futures trading in any tradable commodity can only be done by individuals with a valid licence and who are registered with a commodity exchange.

“We have now informed the Forward Markets Commission about the crime and they will be assisting us in the investigation. The trio acted as a parallel trading platform and took investment calls on future gold trading prices,” said sub-inspector Nitin Shinde of L T Marg police station.