New Delhi, Nov 27 : A shocking financial fraud case has surfaced in Mumbai, where a 72-year-old businessman was allegedly cheated of nearly ₹35 crore through unauthorised trades carried out over four years.
The victim, Bharat Harakchand Shah, a resident of Matunga West, stated in his police complaint that a brokerage firm, Globe Capital Market Limited, carried out large-scale trades using his and his wife’s Demat account without consent.
Shah, who runs a low-cost guesthouse for cancer patients in Parel, inherited a stock portfolio from his late father. Neither he nor his wife had experience or understanding of stock trading and never participated in active trading for decades.
How the Scam Began
In 2020, after a friend’s suggestion, Shah opened trading and Demat accounts with Globe Capital. He transferred his inherited shares, believing the firm’s assurance that no extra investment would be needed, the shares would act as collateral, and a dedicated team would manage his portfolio.
Two employees from the firm, named Akshay Baria and Karan Siroya, began handling the accounts. Over time, they gained access to Shah’s OTPs, emails and confidential details under the pretext of assisting him.
What started as guidance soon turned into full control as the representatives began making home visits and remotely managing the accounts. Meanwhile, false profit reports were sent to Shah, giving the impression that trading was progressing smoothly.
When the Truth Emerged
The fraud came to light in July 2024 when Shah received a call from the company’s Risk Management Department, stating that he owed ₹35 crore and needed to settle the balance immediately.
Afraid of losing everything, Shah sold his remaining shares and cleared the amount demanded.
Later, when Shah accessed the original detailed statements from the company’s website and compared them to the misleading reports he had received, he discovered major discrepancies. He also found that responses to multiple NSE notices were filed in his name without his knowledge.
Shah described the experience as an organised financial scam and lodged a complaint with Vanrai Police Station. The FIR includes charges of cheating and criminal breach of trust under IPC Sections 409 and 420. The case has now been transferred to the Economic Offences Wing (EOW) for further investigation.
Public Message: Think Before You Invest
This incident serves as an important reminder:
Do not invest in the stock market without proper knowledge or verified guidance.
Blind trust in brokers or trading platforms can result in major financial loss.
Always cross-check transaction logs, emails, and statements from official sources.
Investing can help build wealth, but investing without understanding the risks can lead to disaster.
