The economic offences wing (EOW) of Mumbai Police on Friday arrested Paresh Kariya, the director of brokerage firm Anugrah Stock and Broking Pvt Ltd, for allegedly cheating around 400 investors of Rs450 crore.
He was arrested on the basis of a complaint lodged last year in September by Ashutosh Shah, an advertisement firm director, for alleged criminal breach of trust and criminal conspiracy.
The first information report (FIR) was registered at Juhu police station but considering the magnitude of the case, it was transferred to EOW for further investigation. During its probe, EOW officers carried out searches at various premises of the accused.
EOW said that Anugrah Stock has around 30,000 clients.
“Nearly 400 investors have approached us so far, alleging that Kariya had pledged their shares with the clearing house and later told them that he had suffered losses and defaulted in returning their money,” said an EOW officer.
Kariya is also accused of violating Security and Exchange Board of India (SEBI) norms by guaranteeing returns to investors.
In the past, he reportedly told the police that his firm suffered a loss of around Rs600 crore during the market crash in 2020. He allegedly pledged his clients’ shares worth over Rs100 crore to get margin for trading. The clearing house then squared off his pledged shares and sold it at lower prices at the time, officers said.
{{/usCountry}}In the past, he reportedly told the police that his firm suffered a loss of around Rs600 crore during the market crash in 2020. He allegedly pledged his clients’ shares worth over Rs100 crore to get margin for trading. The clearing house then squared off his pledged shares and sold it at lower prices at the time, officers said.
{{/usCountry}}“Kariya was produced in court on Friday and was remanded police custody for six days (January 21). The investigation is on,” inspector Rajesh Kewale said.
The FIR names two more accused, but they are yet to be arrested.