Mumbai Man Loses ₹35 Crore in Alleged Trading Scam; Victim Remained Unaware For Four Years

ir="ltr"> A 72-year-old man from Matunga West has accused a brokerage firm of carrying out unauthorised trading that led to a loss of Rs 35 crore. The victim, identified as Bharat Harakchand Shah, said Globe Capital Market Limited used trading accounts owned by him and his wife without permission for four years. He also accused the firm of taking away their inherited savings from them. The Shah couple ran a low-cost guest house in Parel for cancer patients. They had inherited a shared portfolio after Shah’s father died in 1984. As per the NDTV report, the couple had no knowledge of the stock market, hence the shares remained untouched for decades.

In 2020, Shah’s time changed when a friend advised him to open a Demat and trading account with Globe Capital Markets Limited. Trusting the recommendation made by his friend, he opened an account for himself and his wife. He transferred their inherited shares to the brokerage.

In the beginning, everything seemed routine. The company’s representatives contacted him frequently, assuring that no additional payments would be needed and that his existing shares would serve as collateral. They also claimed he would receive personalised guidance throughout the process. Under this setup, two employees — Akshay Baria and Karan Siroya — were appointed to oversee the couple’s trading accounts.

However, Shah stated that this is when the situation took a negative turn. He alleged that the employees gradually gained full access to his accounts, directing him on which trades to execute. Over time, they began visiting his home and operating the accounts using their own laptops. Shah claims he was convinced to reveal all credentials, share OTPs, and approve every notification, believing the firm was working in his favour, the report added.

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According to the FIR, Shah had no clue that extensive trading was being carried out under his name. Globe Capital allegedly executed trades worth lakhs every single day through both his and his wife's accounts. Yet, between 2020 and 2024, the annual reports he received consistently reflected profits.

Since these statements appeared accurate and favourable, Shah never suspected wrongdoing. Meanwhile, the firm was reportedly engaging in high-risk and excessive trading. Many of the transactions were allegedly “circular trades,” where the same entity repeatedly bought and sold the same shares — often considered an indicator of market manipulation.

Shah later learned that shares valued in crores had been sold without his permission and that losses had been accumulating over the years. However, none of this was visible to him because he was shown selective, fabricated statements indicating profit.

How was the scam exposed?

The alleged fraud came to light in July 2024, when Shah unexpectedly received a call from Globe Capital’s Risk Management Department informing him that both accounts carried a combined debit of ₹35 crore. He was warned that if he didn’t clear the dues immediately, the remaining shares would be liquidated.

Disturbed, Shah went to the company’s office where he was told that the massive deficit was the result of years of unauthorised trading. Fearing further losses, he sold his remaining investments and settled the ₹35 crore amount.

It was only after downloading the original trading history from the company’s portal that Shah realised the scale of the alleged misconduct. The official data was drastically different from the profit reports he had received over the years. He also discovered that the brokerage had responded to several NSE notices on his behalf — without ever informing him.

Calling the incident a planned and structured financial scam, Shah lodged a complaint with Vanrai Police Station. A case has been registered under IPC sections, including 420 (cheating) and 409 (criminal breach of trust). The matter has now been transferred to the Mumbai Police Economic Offences Wing (EOW) for further investigation.Open in app