Mumbai: A 72-year-old businessman from Mumbai has claimed he was defrauded of approximately Rs 35 crore in a prolonged trading scam that went undetected for four years. Bharat Harakchand Shah, a resident of Matunga West, has alleged that brokerage firm Globe Capital Market Limited carried out extensive unauthorised trading using his wife’s account, as per an NDTV report.
How the alleged fraud began
Shah, who runs a low-cost guest house for cancer patients in Parel with his wife, inherited a substantial share portfolio following his father’s death in 1984. Lacking any knowledge of stock trading, the couple had never managed the portfolio actively.
In 2020, acting on a friend’s recommendation, Shah opened Demat and trading accounts for himself and his wife with Globe Capital Market and transferred their inherited shares to the firm. At first, communication with the company was routine. Representatives regularly called him, assuring him that no fresh investment would be necessary and that the shares could be safely used as collateral.
The company also reportedly promised to assign “personal guides” to oversee his investments. Two employees were appointed to manage his portfolio and soon assumed full control of the couple’s accounts.
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‘They took over everything’
According to the FIR, the employees initially contacted Shah daily with instructions on which trades to execute. This later escalated to home visits, during which they conducted transactions from their own laptops. Shah said he was persuaded to share every piece of required information—entering OTPs, responding to emails and SMS messages—without being given a clear picture of what was actually taking place.
Unbeknown to him, large-scale trading activity was being conducted through his and his wife’s accounts. From March 2020 to June 2024, the annual statements he received consistently reflected “profits”, leaving him with no reason to doubt the firm’s intentions.
The shocking discovery
The alleged deception unravelled in July 2024, when Globe Capital’s Risk Management Department informed him that he and his wife had accumulated a debit of Rs 35 crore. He was warned that unless the amount was paid immediately, the remaining shares would be liquidated.
On visiting the company, Shah was told that extensive unauthorised trades had taken place, including high-value sales and circular trades that had driven the account deep into loss. Under pressure, he sold his remaining shares and cleared the entire Rs 35 crore debit before moving his leftover assets to another firm.
Shah also learned that the company had received several notices from the National Stock Exchange (NSE), responding to them in his name without his knowledge.
Shah has since filed an FIR at Vanrai police station. The case has been transferred to the Mumbai Police Economic Offences Wing for further investigation.
