A troubling case of large scale financial fraud has surfaced in Mumbai involving a 72 year old businessman who unknowingly lost Rs 35 crore over a period of four years. The victim, identified as Bharat Harakchand Shah from Matunga West, has alleged that a brokerage firm used his wife’s account for unauthorised trading without his knowledge.
Shah and his wife run a low rent guest house for cancer patients in Parel. He had inherited a share portfolio after his father passed away in 1984. Since neither he nor his wife had any understanding of stock market trading, they never used the inherited shares actively.
The alleged fraud began in 2020 after a friend advised Shah to open a Demat and trading account with a brokerage firm. He opened accounts for himself and his wife and transferred the inherited shares to the company. In the beginning, everything appeared normal. Company representatives were in regular contact, assuring him that no extra investment was needed and that the existing shares could be used as collateral for safe trading.
The representatives also promised that the company would assign personal guides to manage his portfolio. Two employees, Akshay Baria and Karan Siroya, were placed in charge and gradually took full control of the accounts. According to the FIR, they began calling Shah daily to instruct him on trading actions and later started visiting his home and sending emails from their own laptops.
Shah was persuaded to share all required information. He entered every OTP and responded to every message and email thinking he was following standard procedures. He says he was only shown limited information while the company handled the actual trading activities without his knowledge.
Between March 2020 and June 2024, Shah received annual statements that consistently showed profits. These clean statements convinced him that everything was functioning properly. He had no reason to suspect that extensive and unauthorised trading was taking place behind the scenes.
The truth came to light in July 2024 when Shah got an unexpected call from the brokerage firm’s risk management team. He was informed that he and his wife had a debit balance of Rs 35 crore and were required to clear it immediately or risk losing their remaining shares. Shocked, he visited the company and learned that large unwanted trades had been carried out and that circular trading had caused heavy losses.
Under pressure, Shah sold his remaining shares and paid the entire amount. He then shifted his leftover holdings to another firm. When he downloaded the original trading records from the company website and compared them with the profit statements he had been receiving, he found major differences. He also discovered that several notices from the National Stock Exchange had been issued and responded to in his name, although he had never been informed.
Shah described the entire experience as an organised financial fraud. He filed an FIR at the Vanrai police station. The case, registered under IPC sections 409 for criminal breach of trust and 420 for cheating, has been handed over to the Economic Offences Wing for investigation.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
