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Stock broking firm defrauds 72-year-old client of Rs 35 crore; Mumbai police register FIR
When the stock broking company told Mumbai resident Bharat Shah that he had lost Rs 35 crore, he went through his account statements and found some entries that he did not identify, prompting him to approach the police.
A 72-year-old Mumbai resident was allegedly duped of Rs 35 crore by a stock broking firm. (File)
A 72-year-old Mumbai resident, who had inherited a substantial portfolio from his deceased father, was allegedly duped of Rs 35 crore by a stock broking company whose agents showed him fudged numbers on his investment. The police said they took advantage of the fact that he did not have much knowledge regarding investments.
According to investigators, after four years of profit, when the stock broking firm suddenly told the victim, Bharat Shah, earlier this year that he had lost Rs 35 crore, he went through his account statements and found some entries that he did not identify. Following this, he approached the police which registered a First Information Report (FIR) earlier this week and booked two of the firm’s employees.
An officer said Shah’s father died in 1984 and he inherited the portfolio. Not having much experience in stock trading, Shah and his wife opened demat and trading accounts in 2020 based on advice by friends.
The complaint said that for the first four years, the stock trading company’s agents regularly kept in touch with him and informed him about profits and other developments in their portfolio.
However, in July 2024, he received a call from the risk management company informing that their demat accounts had a Rs 35 crore debit, following which he sold shares worth Rs 35 crore and moved the rest of the holding to another company.
Later, when he went through his account statement, he realised that the figures quoted to him over the years were fudged, and that the share trading company had invested in just one or two companies rather than diversifying the investments. On the basis of this, he approached the local Vanrai police in Goregaon, and an FIR was registered.
An officer said that since the amount involved was over Rs 10 crore, the matter has been handed over to the Economic Offences Wing (EOW) of the Mumbai police for further investigation.
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