Bizman arrested for cheating brother of ₹9 crore

The 50-year-old Malabar Hill resident cheated his brother while investing proceeds of the sale of their firm, Anchor Electricals, to Panasonic Electricals, said police

Mumbai: The Economic Offences Wing (EOW) of Mumbai police has arrested businessman Hemang Shah for allegedly cheating his brother to the tune of ₹9 crore. The 50-year-old Malabar Hill resident cheated his brother while investing proceeds of the sale of their firm, Anchor Electricals, to Panasonic Electricals, said police.

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According to the police, Anchor Electricals was established in 1963 by brothers Jadhavji Shah and Damji Lalji Shah. When the company was sold to Panasonic Electricals for ₹2,500 crore in 2007, the two brothers divided the money equally among themselves. Jadhavji and his sons Mehul and Hemang Shah subsequently set up 180 companies including Great White Global Private Limited, Good Value Financial Private Limited, Anchor Leasing Private limited and Anchor Enterprises Private Limited. These companies were all based out of Peninsula Business Park in Lower Parel.

According to Mehul Shah’s complaint to the police, in 2020, Hemang told him that there was surplus money in their companies’ bank accounts on which they were earning only 5-6% interest. Hemang also claimed that they could earn 10-12% interest if the money was invested debentures or mutual funds. Since Mehul was busy with other things, he asked his brother to invest the funds on his behalf, he told the police.

“Hemang began investing from March 3, 2020. Although he claimed that he would invest equal amounts on his and his brother’s behalf, he invested more in his own name,” said a police officer aware of the matter. “He cheated his brother of nearly ₹9 crore in this way.”

Hemang Shah also asked his brother not to withdraw the money in August 2024, claiming the market was down, the officer noted.

Based on Mehul Shah’s complaint, Hemang Shah was booked and arrested under sections 316 (5) (criminal breach of trust) and 318 (4) (cheating) of the Bhartiya Nyaya Sanhita.