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Brokerage Firm Accused of ₹35 Crore Fraud
27 Nov
Summary
- Brokerage firm Globe Capital Market faces fraud charges.
- Investor claims firm created fake losses of ₹35 crore.
- EOW investigation expands, suspecting other victims.
The Economic Offences Wing (EOW) in Mumbai has initiated a case against Globe Capital Market, a registered brokerage firm, following a complaint from a 72-year-old investor. The firm is accused of submitting forged financial statements and manipulating share trading activities to create artificial losses for clients.
The investor, Bharat Shah, along with his wife, reportedly opened accounts with Globe Capital Market in 2020. They allege that relationship managers provided fabricated transaction statements showing profits, while simultaneously informing them of a ₹35 crore debt. Fearing liquidation of their assets, the couple paid the amount, only to later discover discrepancies during an audit.
EOW sources revealed that the investigation is ongoing, with suspicions that similar fraudulent activities may have affected other customers. Summons are expected to be issued to the involved individuals from next week as the probe into the alleged ₹35 crore fraud intensifies.
