Mumbai – The Economic Offences Wing (EOW) has booked Globe Capital Market Limited following a complaint by a 72-year-old Mumbai businessman, Bharat Harakchand Shah, who alleges he was defrauded of ₹35 crore through unauthorized trading activities over four years. Shah, a resident of Matunga West, runs a low-cost guesthouse for cancer patients in Parel with his wife.
According to the FIR, Globe Capital allegedly conducted large-scale trades using Shah and his wife's Demat account without their consent. The brokerage firm purportedly "wrongfully hypothecated the complainant's shares and carried out unauthorized trading activities," including repetitive buy-sell transactions in the futures and options segment with the same counterparty.
Shah inherited a stock portfolio from his late father in 1984. Lacking experience in stock trading, he opened trading and Demat accounts with Globe Capital in 2020 after a friend's recommendation. He transferred his inherited shares, trusting the firm's assurance that no extra investment was needed, the shares would act as collateral, and a dedicated team would manage his portfolio. Two employees from the firm, Akshay Baria and Karan Siroya, were assigned to handle the accounts. They gained access to Shah's OTPs, emails, and confidential details under the guise of assisting him.
Initially, the representatives contacted Shah daily, instructing him on trades. They later began visiting his home and managing the accounts remotely, sending false profit reports to create the illusion of smooth trading. The fraud surfaced in July 2024 when Shah was informed by the company's Risk Management Department that he had a debit balance of ₹35 crore and needed to settle it immediately. To avoid further losses, Shah sold his remaining shares to clear the debt.
After accessing the original detailed statements from the company's website, Shah discovered major discrepancies compared to the misleading reports he had received. He also found that responses to multiple NSE notices were filed in his name without his knowledge. Shah described the experience as an organized financial scam and filed a complaint with the Vanrai Police Station. The FIR includes charges of cheating and criminal breach of trust under IPC Sections 409 and 420, and the case has been transferred to the EOW for further investigation.
In a separate incident, the Economic Offences Wing (EOW) of Madhya Pradesh had registered a case of ₹35.75 crore fraud against Bhopal-based businessman Dilip Kumar Gupta and his two companies in October 2025. Gupta allegedly duped a local investor by manipulating company shares, issuing fake cheques, and using forged documents to siphon off funds.
