Mumbai businessman loses Rs350 million in massive trading scam

Dubai: A shocking case of financial fraud has emerged from Mumbai, where a 72-year-old businessman was allegedly duped of nearly ₹35 crore (Rs350 million) by a prominent brokerage firm through years of unauthorised trading, NDTV reported.

Bharat Harakchand Shah, a resident of Matunga West, has accused Globe Capital Market Limited of misusing the trading and Demat accounts opened for him and his wife, executing high-risk transactions without their consent between 2020 and 2024.

Shah, who runs a low-rent guesthouse for cancer patients in Parel, had inherited a share portfolio decades ago but never actively engaged in trading, largely because he lacked confidence and market knowledge.

In 2020, acting on a friend’s advice, he opened Demat and trading accounts with Globe Capital and transferred his inherited shares—an act he believed would keep his holdings safe but instead triggered a four-year ordeal he could never have imagined.

10 steps to avoid being scammed

• Never share OTPs or passwords: No broker needs them. Treat them like your ATM PIN.

• Download statements yourself: Check reports only on the official broker app/website.

• Review activity every week: Spot unknown trades early.

• Verify SEBI registration: Check both the brokerage and the individual.

• Don’t give control of your account: Avoid handing over access unless it’s an authorised PMS.

• Reject “guaranteed returns”: It’s the biggest red flag in the market.

• Insist on written communication: No major decision based on calls or verbal promises.

• Never sign blank forms: Or allow remote access to your device.

• Check exchange alerts instantly: Unknown trades? Contact the broker/exchange immediately.

• Report suspicious activity early: Use SEBI SCORES or the local cybercrime unit.

According to the FIR, the alleged fraud began subtly. Representatives of Globe Capital reassured Shah that he would not have to invest any additional funds, that his existing shares could be used as collateral, and that he would be assigned personal advisors to manage his trades.

emails sent

Two employees, Akshay Baria and Karan Siroya, were introduced as his portfolio managers. Shah claims that they quickly took complete control of his accounts, initially offering guidance over daily phone calls before escalating to frequent home visits.

During these visits, the employees allegedly sent emails from their own laptops, asked him to enter OTPs without explaining their purpose, made him open and respond to SMS alerts, and repeatedly assured him that everything was secure.

Trusting their assurances, Shah complied—until the day everything unravelled.

In July 2024, he received a call from the firm’s Risk Management Department informing him that he and his wife had accumulated a debit balance of ₹35 crore and needed to settle it immediately or risk the forced sale of all their shares.

Shocked, he rushed to the company’s office, where he was told that massive unauthorised trades had been carried out in his accounts. High-volume circular trades, repeated buy-and-sell orders with the same parties, and reckless leveraged positions had allegedly drained his portfolio.

Panicked and under pressure, Shah says he was compelled to sell his remaining shares, pay the staggering ₹35 crore, and transfer whatever holdings were left to another company.

It was only later, after downloading the original trading statements from Globe’s website, that he realised the profit reports he had been receiving were fabricated.

The genuine statements revealed mounting losses, contradicting the glossy profit summaries sent to him over the years. Shah also discovered that the company had replied to several National Stock Exchange notices using his name—without ever informing him.

“For four years, they showed us false profit statements while the actual losses kept rising. This is organised financial fraud,” Shah said.

He subsequently filed an FIR at Vanrai Police Station, and a case has been registered under IPC sections 409 (criminal breach of trust), 420 (cheating), and other relevant provisions. The investigation has since been transferred to Mumbai’s Economic Offences Wing, which will now probe the alleged multi-crore fraud.