Bullion trader, son denied bail in ₹43 Cr dabba trading fraud

The special court on Monday rejected the bail pleas of a father-son duo of bullion traders who had allegedly cheated a city businessman of 36.37 kg of gold and ₹10.51 crore cash

MUMBAI: The special court on Monday rejected the bail pleas of a father-son duo of bullion traders who had allegedly cheated a city businessman of 36.37 kg of gold and ₹10.51 crore cash.

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In August 2025, a partner of FIVE Bullions, a bullion trading company in Zaveri Bazar, filed a complaint that Ladulal Kanther, 55, his son, Pallav Kanther, 26, and his nephew, Shubhan Kanther, had duped him and his family of nearly ₹43 crore through illegal dabba trading. The Securities Exchange Board of India defines dabba trading as an illegal and unregulated form of trading in securities where trades are settled internally by operators outside the purview of stock exchanges and regulatory bodies. Following their complaint, the father-son duo was arrested on August 8 and remained at Arthur Road Jail.

According to the prosecution, a chartered accountant introduced the accused to the victim in 2023, presenting them as bullion traders running a company called Maxis Bullion and Pallav Gold. The accused then borrowed ₹2.2 crore from the complainant, and eventually returned it, gaining his trust. Lured by promises of high returns, the complainant and his relatives invested around 36.4 kg of gold and ₹10.51 crore cash between 2023 and 2024.

The prosecution added that when the investors later demanded their money back, the accused claimed there was a “slowdown in the market” and refused to pay them. In June 2024, in a meeting between the accused and the complainant, the Kanthers admitted that they had diverted the gold and the money into illegal dabba trading. While they gave the complainant a written promise to repay ₹33.25 crore and issued cheques too, the cheques bounced between November 2024 and May 2025.

Representatives of the accused argued that the complainant had “misused police machinery by giving a purely civil dispute a criminal colour”, but the court dismissed their argument. Special judge VD Kedar noted, “the accused, without the knowledge and consent of the informant and others, invested the amount in dabba trading, i.e., gambling, which clearly indicates their dishonest intention.”

The judge noted that the accused had also acknowledged in writing their ₹33.25 crore liability to the complainant and others. “They issued cheques extending up to the year 2032. Upon presentation, the initial cheques were dishonoured, which also indicates their dishonest intention,” the judge said, adding that the allegations revealed a “serious economic offence”.

The court held that since the investigation was still ongoing, with “prima facie international trading connections”, releasing the Kanthers could hamper the probe and risk tampering with evidence.