Mumbai Pensioner Wiped Out: Rs 35 Crore Vanishes in 4-Year Brokerage Nightmare
72-year-old Bharat Shah loses inherited fortune to Globe Capital's alleged unauthorized trades and fake profit reports.
Bharat Harakchand Shah, a 72-year-old Matunga West resident running a low-rent guest house for cancer patients in Parel, alleges Globe Capital Market Limited defrauded him of Rs 35 crore through four years of unauthorized trading in his and his wife's Demat accounts. Inherited shares from his father in 1984 sat untouched due to the couple's lack of market knowledge until a friend's 2020 recommendation led Shah to transfer holdings to Globe, assured no extra funds needed as collateral with "personal guides" assigned.
Employees Akshay Baria and Karan Siroya allegedly escalated control: daily calls turned to home visits, emails from personal laptops, and demands for OTPs, SMS, and full permissions. Shah, trusting official process, remained oblivious as circular trades eroded value from March 2020 to June 2024, masked by annual profit statements showing gains. NSE notices received by Globe went unanswered to Shah, with firm responding in his name without consent.
July 2024 shattered illusions when Risk Management called demanding Rs 35 crore debit payment or share auction. At Globe's office, Shah learned of massive losses from illicit trades; fearing total wipeout, he sold remnants, paid debt, and shifted to another broker. Website downloads revealed stark discrepancies versus emailed "profits," exposing organized deception.
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FIR at Vanrai police station under IPC 409 (breach of trust) and 420 (cheating) transferred to Mumbai EOW for probe into how SEBI-registered Globe evaded oversight. Shah calls it "financial terrorism," amid pattern: Karnataka family lost Rs 4.25 crore similarly via unauthorized access post-35% return lures. Globe warns of scammers misusing its name, but Shah's case highlights risks of shared credentials in volatile markets amid SEBI alerts on social media frauds.
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