Former Nerolac Paint MD duped of 59 lakh in stock scam

Published on Jul 30, 2022 11:08 PM IST

The complainant was told that Iyer was a share broker and he offered to sell shares of the National Stock Exchange (NSE) held by United India Insurance Limited.

Police officials said Iyer and his wife have similarly cheated several others. (PTI)
Police officials said Iyer and his wife have similarly cheated several others. (PTI)
ByVinay Dalvi

Mumbai: The police has registered a First Information Report after a 62-year-old retired executive of a paint manufacturing company alleged that a person, who claimed to be a Chartered Accountant (CA), defrauded him of 59 lakh by promising lucrative returns on investment in the share market.

The complainant Harishchandra Bharuka informed the police that in November 2019, when he was working at Kansai Nerolac Paints Limited as Vice Chairman and Managing Director, his administrative manager Ramesh Shendge introduced him to one Ramkrishna S Iyer. Bharuka retired from Kansai Nerolac Paints in March 2022.

The complainant was told that Iyer was a share broker and he offered to sell shares of the National Stock Exchange (NSE) held by United India Insurance Limited. Iyer told him that he wanted to sell 6 lakh shares at 841.36 per share.

Bharuka told him that he was not very keen to buy the shares. However, Iyer showed him the profit made by other people and also told him that he will give the shares at a cheaper rate so that he could profit more. Initially, Bharuka invested 44 lakh, later his wife Parvati also invested 16.5 lakh. The couple transferred the amounts to the bank account of Iyer’s wife Savitri, said the police officer.

“There was an agreement between the parties regarding the purchase of shares, which were executed between November 2019 and June 2020. Later when Bharuka asked for the purchased shares, he got vague answers from Iyer. After Bharuka started demanding his money back, Iyer returned 1.5 lakh to his wife Parvati,” said a police officer from N M Joshi Marg police station.

Later, his attempts to reach Iyer failed, as both his mobile phones were found to be switched off. Bharuka eventually approached the police, as he did not know where Iyer lived and reported the fraud.

“We have registered a case against Ramkrishna Iyer and his wife Savitri under sections 420 for cheating, 406 for criminal breach of trust and 34 for common intention of the Indian Penal Code (IPC),” said a police officer from the N M Joshi Marg police station. Police officials said Iyer and his wife have similarly cheated several others.

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