Mumbai: A shocking financial scam has left 72-year-old Bharat Harkchand Shah reeling after discovering that he lost ₹35 crore over four years due to unauthorized trading by a brokerage firm. Shah, a resident of Matunga West, alleged that Glob Capital Market Limited misused his and his wife’s accounts, misleading them while conducting trades without consent.
How the Scam Unfolded
Shah, along with his wife, runs a low-cost guesthouse for cancer patients in Parel. After inheriting a stock portfolio following his father’s death in 1984, Shah had little experience in the stock market. In 2020, on a friend’s recommendation, he opened a Demat and trading account with Glob Capital Market Limited, transferring his inherited shares to it.
Initially, company representatives regularly contacted Shah, assuring him that no extra investment was needed and that his shares would be used as collateral for safe trading. Under the pretext of providing personal guidance, employees Akshay Baria and Karan Siroya gradually gained full control of Shah’s accounts.
Gradual Deception
According to the FIR, the employees initially called Shah daily to give trading instructions. Soon, they started visiting his home, sending emails, and selectively sharing information. Shah repeatedly entered OTPs and followed instructions without suspicion, unknowingly giving employees full access. Between March 2020 and June 2024, annual profit statements were emailed to Shah, masking the growing losses.
Discovery of the Fraud
In July 2024, Shah received a shocking call from the company’s risk management department: his accounts showed a debit balance of ₹35 crore, and he was warned to pay immediately or face forced sale of shares. Upon visiting the company, Shah discovered that massive unauthorized trading had occurred under his name. Circular trades and unapproved share sales had caused enormous losses. To protect the remaining assets, Shah was forced to sell his remaining shares, paying the full ₹35 crore, and later transferred the remaining shares to another firm.
A comparison of real trading statements downloaded from the company website with the profit statements emailed to him revealed the massive discrepancy. Shah also learned that the NSE had sent multiple notices to the brokerage, all of which were answered by the company without his knowledge.
Legal Action
Shah has filed a complaint with the Wadala police station, describing the case as organized financial fraud. The FIR includes charges under IPC Sections 409 (criminal breach of trust) and 420 (cheating). The case has now been transferred to the Economic Offences Wing (EOW) of Mumbai Police for further investigation.
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