Mumbai Senior Citizen Loses Rs 35 Crore In Stock Trading 'Fraud', Realises Four Years Later
The 72-year-old was under the assumption that he was making profit between March 2020 and June 2024.
Bharat Harakchand Shah, 72, resident of Mumbai's Matunga West has accused brokerage firm Globe Capital Market Ltd. of orchestrating "organised financial fraud" through unauthorised trading over four years which caused him a loss of Rs 35 crore.
Shah had inherited a share portfolio from his father after his death in 1984, but had never made an investment, as reported by NDTV. Decades later, in 2020, he opened a Demat and trading account for himself and his wife with Globe Capital Markets, and transferred their inherited shares to the company on the suggestion of a friend, according to the report.
Following this, company representatives allegedly assured Shah that no additional investments will be required for trading and that shares could be safely traded using them as collateral.
According to Shah, the company appointed two employees, Akshay Baria and Karan Siroya, as "personal guides" for him and his wife. Baria and Siroya allegedly took complete control of Shah's portfolio under the guise of "managing" it, as per the report.
Shah has alleged that the duo manipulated him into giving out all key information. He ended up entering all the one time passwords or OTPs and replied to every mail and SMS.
All the annual statements that he received spanning over March 2020 and June 2024 showed "profits." However, extensive trading activities were being conducted through his accounts, as per the NDTV report. Shah did not suspect anything since a clean statement would arrive every year.
In July 2024, Shah received a sudden call from Globe Capital's Risk Management Department, saying, "You and your wife have a debit balance of Rs 35 crore in your accounts. You must pay it immediately, or your shares will be sold."
According to Shah, when he visited the company, he learnt about multiple instances of unauthorised trading done. There were also major discrepancies between the receipts he received and original, he alleged.
"For four years, the company presented us with a false picture, while the actual losses continued to mount," Shah was quoted as saying by NDTV.
The 72 year-old has filed an FIR with the Vanrai police station. The case has been registered under IPC sections including 409 (Criminal Breach of Trust) and 420 (Cheating). It has now been shifted to the Mumbai Police's Economic Offences Wing (EOW) for further investigation.
